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Transform Your Business by Making it Simpler



March 11, 2014 By: Chris Newton-Smith
VP, Marketing, Redknee

Today’s mobile subscribers are a sophisticated species. In a market where practically every subscriber is equipped with smartphones and devices, there’s a growing sense of familiarity with technology and the costs of ownership. This is especially the case as consumers find it so easy to shop around, either in retail outlets or online.

Operators now accept the business imperative that says innovation is critical for success. The ability to support this change, however, often requires CSPs to update their back office systems; ensuring that they have the right foundation in place to support the newest technologies, deliver the latest services, and market more effectively to their subscribers. Before making any changes, however, CSPs need to ask what are their primary goals and objectives and what are the gaps in their systems today?

Any operator who tries to maximise business opportunities faces these questions. They need to weigh the cost of entry to new market segments, and the opportunity cost of not adapting to the evolving needs of the subscriber; the high cost of doing nothing- of making due with an inflexible back office system that effectively kills innovation because it can’t support new services, allowing competitors to start slowly chipping away at their subscriber base.

So, how can business transformation take place successfully and with the least amount of disruption? One particular North American operator showed that a market transition can be executed well and has opened up considerable new business potential in niche market areas, including retail partnerships, ethnic segments and data service-only products, with minimal disruption to its operating platform.

Like many, this particular operator faced the conundrum of how to bring new services into an existing infrastructure that was designed to serve the needs of its already sizeable traditional subscriber base. To do so, it needed to transform its approach to address new subscriber behaviours, such as the demand for new mobile broadband, OTT and content services.

Smart and Savvy

Customers are not passive subscribers any more. They are getting much smarter at locating and switching to the best deals and finding cheaper alternatives to post-paid plans; they know how to swap SIM cards or use multiple devices for the best price discounts. Mobile operators have to be nimble in a market where business models are transforming rapidly. But can a Tier 1 operator, the Goliath in any telecoms set-up, move with the same agility as an MVNO or a Greenfield player? The North American operator in question has not only bridged the divide between its legacy systems and new capabilities, but also balanced the weight of a large organisation with the fleet-footedness needed to compete in a modern world.

By turning to a hosted solution from a Managed Service Provider (MSP) offering a more flexible model, it eliminates the investment costs needed in trying to get a solution up and running in-house.

Was a hosted solution the right answer to address its needs? The operator wanted a full end-to-end solution that included self-serve web care, CRM, billing and charging for both post-paid and pre-paid opportunities. It also needed the ability to launch new services via multiple brands targeted to specific vertical or niche market segments. Such requirements can be a pretty tall order when the core business demands everybody’s focus, and changes to the IT infrastructure can create day-to-day complications.

All Operators Are Born Equal…

Business Support Systems (BSS) should be about driving greater profitability; reducing churn, increasing customer acquisition and leveraging robust capabilities to create customer loyalty. They should enable operators to provision new services without breaking the bank due to hardware and/or systems integration costs. Many CSPs are turning to the cloud to gain these benefits. Business Support Services leveraged from the cloud offers the agility required to compete effectively.

The success of many MVNOs and ‘Greenfield’ players, unencumbered by major infrastructure concerns and unhitched from the traditional operator model, supports the observation that outsourcing back office systems are actually helping to drive service quality and innovation. Operators who implement real-time charging and policy controls using cloud-based billing initiatives are able to provide subscribers with the ability make purchases and changes to their services without involving customer care resources, including opt-in/out, as well as changing service options, price plans and creating their own service bundles. It gives operators a platform to differentiate their proposition by responding to what their subscribers really want and showing that keeping it simple can make it work.

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About Redknee:
Redknee monetizes today's digital world for communications service providers. Our market-leading portfolio of monetization and subscriber management solutions includes real-time billing, charging, policy and customer care modules and is available on premise, cloud-based, or as Software-as-a-Service. With a central focus on driving customer success, Redknee's products power growth and innovation for operators globally. Established in 1999, Redknee Solutions Inc. (TSX: RKN) can be found on the Toronto Stock Exchange. For more information about Redknee, please go to

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