December 2016

 

Mac Taylor - Editor

Business drivers for SDP adoption

increased customer expectations and appetite for services available on mobile devices and lately on the triple screen: web, TV and mobile; by adopting SDPs for serving such demands, CSPs are enabled to continuously increase the number of content and applications partners who can discover new customer segments among their subscribers while the CSP can combine new offerings through flexible packaging and charging;

increased competition among various categories of Service Providers (mobile vs. fix, telecom vs. cable, entrants vs. incumbents, SaaS and Internet Services Providers vs. network operators) and pressure to compete beyond pricing within the same subscriber base; SDP architectures embedding intellectual property to differentiate in the way CSPs support new business models with exclusive partnerships for services, content or devices and leverage new infrastructure investments are strategies in support of this business driver;

pressure on profit margins which requires greater efficiency in offering new and personalized value services for well targeted subscriber segments at lower costs; services deployed on SDP have higher margins; if correctly exploited, this advantage can compensate the decreasing revenue from voice services which happens in both mature and emergent markets, the former due to substitution with mobile and VoIP over broadband, the latter due to acquire poorer subscriber segments with incentives in free minutes and removal of traditional fees such as roaming across country borders;

the promise made with network focused strategies, specifically the investments in broadband access by attracting the new generation of broadband subscribers with a substantial number of content sources and a “long tail” of services realized at the low additional cost of an SDP when compared with the CAPEX allocated ahead to the broadband technologies (3G, LTE/WiMax, fiber), IMS core network elements or end-to-end IPTV deployments.

Whether it is about creating, faster and at lower cost, the “long-tail” of services for the broadband access or about increasing revenue from specific classes of data services, the SDP proved to be the right investment. The SDP solution strategy survived the challenge of advanced Intelligent Network (IN) platforms, readyto- deploy “stove-pipe” solutions with perceived high market traction and IMS services platforms hype that killed a few SDP projects over the past years.

The SDP is the solution for the CSP services layer to accomplish network and IT capabilities convergence, rapid service composition from reusable components, Third Party access to create new services and support for flexible business models.