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Mobile operator Apps have the potential to transform mobile operator business models as well as reduce costs, a new report from Telecomspricing finds

A new report from Telecomspricing entitled The growth in Mobile operator Apps: The acceleration of digital customer service through an App strategy, finds that mobile operators all over the world are deploying their own Mobile App for smartphone users - and are offering near real-time information on customer usage and utilisation.

The deployment of a Mobile operator App is being undertaken as part of a digitalization strategy and has enabled providers to reduce distribution, service and sales costs. It has also paved the way for a radical rationalization of an operator’s retail operations with an operator announcing a 40 per cent reduction in the number of stores by 2023 as the Mobile operator App now becomes the main channel for customer interaction.

Mobile operators in developing markets in particular have sought to add extra features to their Apps - including loyalty points, gifts and games in order to increase user stickiness. For example, Telkomsel (Indonesia) has deployed a “gamification” strategy for its MyTelkomsel App. When using MyTelkomsel App the user has the opportunity to participate in a game with a possible reward to be played every day - thus encouraging the user to engage with the MyTelkomsel App on a daily basis. Other Mobile Operator Apps provide bonus amounts for airtime recharges performed within the App. 

Telecomspricing finds that the benefit of deploying a Mobile Operator App can be substantial, including improved customer loyalty and brand approval ratings, as well as reduced costs to the operator. But the implementation of a Mobile operator App has to be performed with care, as a poorly designed App can be a considerable source of user dissatisfaction and can undermine the brand.

To-date the majority of Mobile Operator Apps implemented have been conservative in their intent mainly providing a way for users to check user accounts, bills, invoices and see near real-time usage. They also allow changes to be made to the user account. Some operators have allowed their Apps to be used to access other accounts including fixed line, broadband and TV services, and check their loyalty programmes.

But there remains considerable potential for the Mobile Operator App to be used to upsell additional services and so earn additional revenues and potentially reduce churn through stickiness of multiple services. To do this well the mobile operator will need to understand their customer preferences through the use of machine learning and Artificial Intelligence (AI).

AI techniques have already been most clearly deployed with the introduction of digital assistants, who have proved to be a convenient and low cost method of customer care. The challenge for the mobile operator is to extend these techniques to successfully upsell additional services that are relevant to their users and so earn additional revenues rather than reduce an operator’s cost base.

Note for the editor:

Contact msessions@telecomspricing.com or call +44 777 625 4287

About the new report: 

The growth in Mobile Operator Apps: The acceleration of digital customer service through an App strategy report – provides a detailed report on the market for Mobile Operator Apps, with case studies of deployments by selected mobile operators around the world. It also considers the deployments of a Mobile operator App as part of a wider digitalization strategy.The cost of the report is GBP 495.00 - single user licence.

About Telecoms Pricing – Telecoms Pricing is the go-to-market brand of research & consultancy company Tariff Consultancy Ltd (TCL). TCL is a London-based company with 14 years of experience in tariffs for mobile and fixed pricing all over the world. Telecoms Pricing provides subscription Tariff Tracker services on smartphones, broadband and 5G & 4G services, a daily TariffAlert service and the Bi-monthly SnapShot Tariff Trends series of mobile topics. Further information on Telecom Pricing’s products can be found on the Telecoms Pricing website at: www.telecomspricing.com.