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December 14, 2011

The Year Ahead - with Allot's Jonathon Gordon

By Paula Bernier, Executive Editor, TMC


TMCnet recently asked some of the leading lights in the industry for their thoughts about 2011 and what’s in store for the year ahead.

Here’s what Jonathon Gordon, director of marketing at Allot Communications (News - Alert), had to say.

“As the application revolution continues so will the scope of OSS/BSS in the mobile world,” Gordon comments.

 Allot has identified three stages in the evolution of mobile charging. The models are:

  • unlimited;
  • volume-based (charging subscribers based on time, volume or speed); and
  • value-based charging (charging based on associating different values with different applications).

Allot believes the market will move quickly into value-based charging in 2012. The market today is between volume-based and value-based charging models, with unlimited on its way out, according to Gordon.

“As operators deploy advanced traffic management solutions that allow them to monitor, meter, and charge for subscriber consumption of over-the-top applications and content, early movers are already transitioning into the next phase of the mobile charging evolution,” he says.

“Value-based charging enables operators to differentiate and charge for different application and content usage; and therefore, offer personalized service plans that best reflect the unique value of different applications and usage patterns to different types of subscribers,” Gordon explains. “One example of a value-based data plan is a social networking plan that makes applications such as Facebook, MySpace and Twitter (News - Alert) zero-rated, while all other application traffic is counted against the monthly quota. The result of value-based charging will be increased operator profitability and subscriber satisfaction.”

According to the MobileTrends Charging Report released last month by Allot, which sells what it calls intelligent IP service optimization and revenue generation solutions to fixed and mobile broadband operators and large enterprises:

  • 35 percent of operators sampled are already offering value-based charging plans, such as zero-rated Facebook (News - Alert);
  • only 13.5 percent of operators sampled are currently offering ‘true unlimited’ plans;
  • 26 percent of operators sampled already have revenue sharing deals and charging models in place;
  • 48 percent of operators sampled are currently curbing data overage;
  • 15 percent of operators sampled charge for tethering, mainly in North America and EMEA; and
  • cloud music providers Spotify (News - Alert), Pandora and Rhapsody are driving the revenue sharing charge.

Edited by Rich Steeves
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