In today’s global data explosion, scientists have concluded that more data has been generated in the past two years than in the entire history of mankind. Staggering data growth trends indicate that big data technology and the associated services market will grow at a near 27 percent compound annual growth rate to $41.5 billion over the next two years. Of course, one of the major sources of this massive growth is Internet of Things devices, which is projected to reach conservatively speaking, 50 billion by 2020. Simply stated, data growth, especially in video over the Internet, is bigger than big.
To put these huge numbers in a smaller market perspective, OpenVault saw the average data usage per subscriber grow 47 percent across our customer base in 2015, including our European markets. OV analysts predict this growth in data consumption will continue and likely accelerate as subscriber content consumption habits continue to move online. Clearly, this data explosion is creating a challenging environment for broadband providers to keep up with; however, the current landscape also presents tremendous opportunities to monetize this data growth. For example, here are two simple ways to drive incremental revenues today:
UPGRADE CURRENT SUBSCRIBERS
The powerful combination of right-sizing customers to appropriate bandwidth speeds alone has had a significant positive impact on revenues for operators. In real-number terms, evidence shows an immediate return as some OpenVault customers have enjoyed as much as seven percent of subscribers upgrading their service within 90 days of usage based billing deployment. For some operators, this translates into increased ARPU (average revenue per unit) of over $5 per subscriber per month.
USAGE BASED (METERED) BILLING
OpenVault customers are able to align growing demand for data with growing revenues by implementing usage based billing and usage quotas. The incremental revenue generated with this strategy can help pay for the inevitable costs of network capacity upgrades. Using OpenVault’s solutions also allows Operators to launch new products (e.g. low price points plans with small quotas to attract a new market segment). OpenVault customers that have deployed usage based billing have experienced increased ARPU ranging from $1.50 up to $12 per subscriber per month.