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It’s Complicated

June 16, 2015 6:00 AM | Category: New Revenues,  | by Chris Newton-Smith

The ‘Traditional’ CSP Business Model is Rapidly Changing – How Can Billing Keep Up? 

There once was a time, not so long ago, when service providers delivered one service –voice calls. Then multi-play and triple play bundles were introduced, which included wireline voice and internet, and perhaps cable. Operators like these ‘bundles’ as they increase ARPU, provide new streams of revenue and foster customer loyalty by making it difficult to switch providers when everything is bundled together. Customers like the discounts operators offer with these bundles. This trend is particularly prevalent in Europe, especially France and Spain, with nearly 60 percent of households buying four or more services from a single operator. Similarly, The Wall Street Journal reported that American households spent, on average, over $191 a month for phone, television, and Internet services in 2013, signifying a 24 percent from 2007.

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