Thought Leadership Series – Part 3
How Cable Mobile Service Can Be a Winning Strategy

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The True Scope of Mobile Monetization For MSOs who Build Back-Office Clout

By Fred Dawson

Table of Contents

Introduction

Expanding Cable’s Role in Advanced Advertising and e-Commerce
     The Impact of Mobile on Video-Related Advertising
     The MSO Opportunity in Enabling Advanced Advertising on Mobile
     Utilizing Advanced Analytics in Advertising & Other Monetization Opportunities
     e-Commerce

            Building Revenue through Third-Party Engagements
            In-House Marketing

How Mobile Impacts MSOs’ IoT-Related Options

The Emerging Telehealth Opportunity

Mobile’s Role in Enhancing Commercial Service Revenues

Conclusion


Introduction

Cable MSOs are entering the mobile arena at a moment when opportunities to draw new revenues from their endeavors extend far beyond the subscription and usage fees common to the traditional cellular business.

As discussed in the first two parts of this series, the cable industry’s intensified focus on wireless has been buttressed by technological innovations enabling cable operators to provide consumers a seamlessly integrated personalized access experience wherever they are to a full range of cable services and applications. Providing cable subscribers an alternative to living in two worlds served by fixed and mobile competitors not only has the potential to drive higher subscription fees; it serves as a mechanism for retaining customers with cost-saving service bundles.

Such considerations at a time when mobile has become an integral part of consumers’ video usage and the operations of MSOs’ business customers are the primary motivation behind cable mobile service strategies. But it’s important to recognize that there’s significant upside to be realized from monetization initiatives that make use of big data analytics and other back-office components of the mobile service framework to significantly enhance ROI on MSOs’ investments in wireless infrastructure and operations.

In part, these new monetization opportunities are tied to a larger shift to new business models that MSOs can forge out of B2B relationships to offset the impact of Internet-driven disruption on legacy B2C models. As mobile becomes an integral part of converged IP-based broadband services it also becomes integral to new B2B offerings.

Such offerings extend well beyond the B2B relationships MSOs have always had with the television industry. As enterprises from industries of every description become ever more dependent on broadband networks to serve their customers and drive operations efficiencies, they have an ever greater need for functionalities that only intelligent data-rich networks can provide.

A mobile service presence greatly enhances cable operators’ ability to satisfy this demand across a wide range of B2B revenue-generating categories, including advertising, e-commerce, Internet-of-Things and value-added services in the SMB and enterprise sectors. Moreover, with increasing reliance on networks for every type of business operation, enterprises need to validate performance and results, which creates an opportunity for operators who rely on advanced data collection and analytics platforms for in-house applications to create data-based products tailored to the needs of specific industry sectors.

Along with enhancing opportunities in the B2B realm, mobile enables new revenue streams on top of the basic subscription and usage fees in the B2C space. For example, the back-office functionalities essential to the personalized service experience intrinsic to mobile can be used by marketing departments to mount and target personalized upsell promotions more flexibly than ever before.

More broadly, the mobile-optimized back office can support new categories of value-added services in both the consumer and business markets. Premium categories might include managed IoT services that are made more attractive when subscribers can use their mobile devices to manage applications or virtual reality services tied to use of head-mounted devices that rely on mobile viewing screens. Having a mobile component in the commercial service portfolio enables operators to offer integrated communications packages, IoT services, software-defined VPNs and cloud-base software packages that gain value with mobile connectivity.

An advanced OSS/BSS infrastructure driven by advanced analytics intelligence is critical to executing all such opportunities. By eliminating the old bifurcation between mobile and fixed-line back offices, MSOs can leverage new operations and relationships management tools to support revenue-generating services and applications that can be quickly activated with a uniform experience across all distribution channels.

For example, such tools can be found in the advances introduced by Amdocs with the latest version of its CES (Customer Experience Solutions) flagship product suite, notes Doug Fantuzzi, vice president for business services and Wi-Fi mobility solutions in Amdocs’ Broadband Cable & Satellite group. “Support for commercial relationships with business partners is a focus of the advances we’ve added with our CES 10 solution portfolio,” Fantuzzi says.

He points to four areas of enhancements to the cloud-enabled CES solutions, including solutions supporting:

  • The ability to deliver omni-channel customer experiences, including retail and e-commerce;
  • Operating in a diversified business environment that supports new enterprise, IoT, video and other services;
  • Utilization of data-powered analytics to drive business, customer and operational decisions;
  • Service agility that shortens time to market, including support for network functions virtualization (NFV) to accelerate fast rollout of new technologies and hybrid network services.

The discussion that follows takes a closer look at the role mobile together with advanced back-office systems can play in enabling MSOs to pursue these monetization opportunities. We begin with an examination of the implications of mobile-delivered video for building new revenues tied to advanced advertising, which, as with all the other revenue-generating categories discussed here, rely heavily on the personalization and data analytics capabilities we explored at length in Part 2.

Expanding Cable’s Role in Advanced Advertising and e-Commerce

The Impact of Mobile on Video-Related Advertising

The fact that mobile devices are now consuming more video than all other Internet-connected devices is the latest sign of how vital a mobile presence has become for cable MSOs.1 Most significantly, long-form video consumption on tablets and smartphones went from 25 percent of the time spent watching video on tablets and 16 percent on smartphones in Q4 2014 to 46 percent and 25 percent, respectively.

These data points, cited by online publisher Ooyala in its Q2 2016 report tracking hundreds of millions of users worldwide, underscore the point made in Part 1 of this series, where we noted  video accounted for 55 percent of total mobile data traffic worldwide in 2015, according to the latest Global Mobile Data Traffic Forecast from Cisco Systems. Yet through most of the years during which video consumption on mobile was surging, the phenomenon wasn’t doing much to move the needle when it came to advertising.

However, the environment has changed dramatically with new projections for mobile advertising citing significantly higher numbers than projections foresaw just a couple of years ago. For example, in 2014 Gartner predicted global mobile advertising revenues would hit $41.9 billion in 2017.2 Now, it seems, that number will be surpassed by a considerable margin in 2016.

For example, in mid-2016, Publicis Media’s ad agency Zenith said global spending on mobile advertising would reach $77 billion in 2016.3 Zenith predicted the global mobile ad spend in 2017 at over $99 billion would top spending on desktop advertising a year earlier than it had anticipated in 2015. Researcher eMarketer offered an even more aggressive projection, predicting the global mobile ad total would reach $100 billion in 2016, representing more than 50 percent of all digital ad expenditures.4
Another recent change in the mobile advertising dynamics is the role played by video ads. In an early 2016 survey of advertising executives, marketing firm Trusted Media Brands found a significant shift to video from banner in mobile advertising was underway, with 45 percent of respondents saying they planned to use banners in 2016 versus 63 percent who used them in 2015. Nearly half of the 45 percent of respondents who said they expected to use video in 2016 said they were planning to use pre- or mid-roll ad placements with slightly fewer saying they would use native ads, which was a drop from the previous year.

The MSO Opportunity in Enabling Advanced Advertising on Mobile

Where the trends in mobile advertising have significant meaning for MSOs can be found in the role operators might play in enabling addressable advertising for TV-caliber content across all Internet-connected devices, including mobile. The opportunity applies both to the ad revenue MSOs can gain directly from dynamic placement of ads in the local avails allocated to them by programming affiliates and to the revenue they can derive from facilitating programmers’ efforts to generate new ad revenue through online consumption of their content.

The surge in long-form video consumption online is driving intensifying efforts among programmers and agencies to build a monetization framework that will capture new dollars with ads placed in live and time-shifted programming streamed to connected devices. For example, since 2013 there has been considerable progress achieving consensus on a “currency” in ad metrics that extends what’s been accomplished with the use of Nielsen ratings in broadcast TV to what Nielsen refers to as the “total video” environment.5 The resulting Nielsen Digital Ad Ratings system is in wide use in multi-platform TV ad campaigns targeting all types of Internet-connected devices.

In the mobile space, the Interactive Advertising Bureau has endorsed a standardized set of commands, designed to work with HTML5 and JavaScript, which allow ad developers to communicate formatting for mobile ads in TV Everywhere and other OTT video apps. IAB has established a compliance seal for certifying vendors are properly using these Mobile Rich Media Ad Interface Definitions.6

These efforts are bearing fruit as broadcasters’ direct-to-consumer (DTC) strategies have placed a higher priority than ever on development of cross-platform advertising models. As previously reported, virtually every TV broadcaster, down to the smaller cable TV networks, has either implemented or plans to implement DTC strategies using ABR streaming to reach viewers wherever they are.7

Even though most of these networks remain committed to supporting the traditional MVPD relationships, some more fervently than others, they all recognize there’s an opportunity to derive revenue from delivering a TV-quality experience to the growing legions of consumers who are not pay TV subscribers. To that end, finding ways to enable dynamic interstitial ad placements on live as well as on-demand content with TV-caliber quality and reliability is getting a lot of attention.

This is where MSOs with the addition of mobile distribution to their service portfolios can play a significant role. Now everything they do in the way of B2B offerings in the advertising space can fully address the market’s focus on building cross-platform campaigns.

While cable industry efforts to create an addressable framework in the legacy pay TV space faltered several years ago, the circumstances surrounding today’s needs for collaboration between cable operators, broadcasters and advertisers are very different. The technical challenges associated with making dynamic advertising work in the Internet world of adaptive bitrate (ABR) streaming are more daunting. And the need for workable solutions is more critical financially at a moment of transformation in the TV industry.

Consequently, there’s a significant monetization opportunity for MSOs who use their networks to deliver quality-of-experience (QoE) benefits that overcome the risks of relying on dynamic ads placed at points of origin or under guidance of client software in devices. Equally if not more important, operators have an opportunity to monetize their data-collecting capabilities with advanced analytics that can help clientele define and reach targeted groups, validate performance to ad buyers and track effectiveness by matching personalized ad exposure data with other data sources that register consumers’ purchasing decisions.

Utilizing Advanced Analytics in Advertising & Other Monetization Opportunities

As noted by Ofir Daniel, director of advertising and entertainment solutions at Amdocs, support for advanced advertising requires an ability to aggregate and intelligently parse massive amounts of data across multiple layers of operation. “The story is around big data and what our customers can do with it,” Daniel says.

Amdocs has gone to considerable lengths to define and validate the dimensions of a data-aggregation and analytics platform that will serve the needs of a hydra-headed advertising market where exposure in every nook and cranny of consumer experience, from the TV set to mobile devices in every space from OTT premium video sites to social media, is vital to advertising success. So far, the results of the effort represent good news for cable operators.

“We went on a long journey approaching agencies, media companies and network service providers to validate the quality of the data we’re able to compile from OSS/BSS and third-party resources and whether the ability to put that data to use for advertising purposes means something to operators,” Daniel says. “What we found is there is a real need for high-quality data that can support deterministic, verifiable performance across all outlets with the ability to aggregate measures of that performance over time.”

The industry also recognizes the need to ensure that consumers can easily control whether or not their personal information is used to deliver them ads suited to their needs and tastes, Daniel notes. “Providing a consumer-friendly way to opt in or out of personalized advertising with all the back-office mechanisms essential to executing ad placements in response to people’s choices is a priority at Amdocs,” he says.

Personalized advertising enables operators to load balance ad placements in accord with maximizing user benefits as well as revenue. For example, operators have the option to take advantage of the higher CPMs generated by personalized ads to lower the per-hour frequency of ads appearing in programming watched by opt-in recipients of such advertising, thereby meeting or exceeding revenue goals while improving consumer experience.

Media companies and their advertisers have also made clear they want more control over an increasingly programmatic ad buying environment than they find in the walled-garden worlds of Google, Facebook and other Web-based advertising behemoths. “They want to be able to inject data into their own DSPs (demand-side-platforms) rather than relying on data over which they have no control,” Daniel says.

This suggests that cable operators may want to go beyond use of the data their back office systems generate internally to utilizing data that can be gleaned from other parties to create a portfolio of information that pertains to advertising inventory wherever it may reside on the Web, whether that inventory is for interstitial placements of video ads in high-value programming or for banner messaging on social media and other sites. “The idea is to create one holistic solution that can provide data in support of a campaign for any brand in whatever environments they want to use to reach their targeted market segments,” Daniel says.

By aggregating data from multiple sources Amdocs intends to equip MSOs and other service providers to make a more powerful business case to B2B customers than would be possible if they focused strictly on video-related opportunities. “We can offer our clients full monetization of all this data,” Daniel says.

Beyond delivering data for use in DSPs, MSOs have many other opportunities for generating new revenue in the multi-platform advertising domain. They extend from basic network quality control through personalization to the generation of metrics essential to defining geographic and demographic categories, validating performance, orchestrating payments, managing complex business relationships and executing other back-office processes essential to MSOs’ participation in the advertising business.

For example, cable operators can apply advanced analytics intelligence to enable things like campaign reporting, rate card optimization and ratings prediction. They can deliver data that allows campaign managers to track the efficacy of their marketing spend against specific audience segments. In instances where such capabilities require the participation of other parties, Amdocs provides full support for integration of partner programs into the operator’s advanced advertising data collection, dispersion and analytics framework, Daniel notes.

e-Commerce

Building Revenue through Third-Party Engagements

Closely tied to the expanded advertising opportunity that comes with building B2B relationships through mobile operations is the potential for generating e-commerce-related revenues through merchant affiliations. The aforementioned BSS capabilities provide a means of providing an easy-to-use transactional and partnership management environment where a supplier of consumer products, whether entertainment or other goods and services, can generate user participation in responses to on-screen offers.

Such offers can be enabled by various vendor app solutions that use contextual signals, such as current world news and trends, time, location and the consumer device, along with social media activity, to deliver cues that accurately describe a user’s interests relative to a specific time and place. With a back-office system in place that supports commercial dealings with third parties together with data analytics that deliver accurate performance metrics, operators have a virtually unlimited opportunity to leverage their converged mobile and fixed broadband services to help brick-and-mortar as well as OTT retailers reach consumers through multiple digital channels.

These capabilities also apply to building business relationships with local retailers who want to reach consumers on their smartphones when they’re in proximity to their physical outlets. As noted in a recent Nielsen report on consumer shopping behavior, smartphones are the dominant in-store source for information.8

Nielsen found that 70 percent of smartphone users on their way to the malls or other shopping destinations use a store locator to plan their shopping trips. Once they arrive at a chosen store, 37 percent organize the shopping experience using lists on their phones. And 63 percent use their devices to search and scan their way to the lowest-priced options. Knowing not only where customers are, but also who they are in terms of age, gender, expressed tastes and other metrics can give operators a competitive B2B sales edge over other wireless providers.

In-House Marketing

The revenue-driving possibilities also extend to bringing mobile users into the upsell promotions and new offers that may be delivered over operators’ fixed services. With the personalization capabilities intrinsic to delivering a superior mobile experience, operators can offer promotions that link free-trial samples of programming into recommendations on users’ personal navigation systems. Or if, say, a marketing department wants to offer a free week of 50 megabit-per-second high-speed data service to anyone who buys three VOD movies in one week, the offer can be tailored to support a free escalation in data usage on mobile during that week as well.

Multiplatform integration also benefits marketing strategies aimed at tracking and responding to changes in consumer behavior. For example, in the case of a subscriber whose level of VOD usage has suddenly dropped off, a proactive interaction with the customer might uncover the fact that he or she has started using an OTT VOD provider, prompting a call or message aimed at getting the customer to reconsider.

Utilizing a converged OSS/BSS environment, operators can go farther, tying the marketing strategy in with functions that are used with QoS and customer care. For example, the marketing application might correlate this reduction in VOD usage with complaints about the set-top DVR as garnered from data flowing into customer service. In this case, the system could deliver a script to the CSR or through the self-help system describing the disadvantages of using OTT suppliers, such as the outmoded release windows of the content they offer, while offering a discount or free usage on VOD along with repair or replacement of the DVR as an incentive.

How Mobile Impacts MSOs’ IoT-Related Options

With support for mobile connectivity, MSOs greatly expand their ability to pursue opportunities in the Internet-of-Things market beyond the types of packaged home security and value-added applications offerings that have characterized most efforts in this arena. New approaches to offering managed IoT services have been motivated by rising concerns among operators that the traditional approach falls short from a cost/benefit perspective, restricting their opportunities as consumers respond to a flood of innovations from app and device developers.9

Consensus is building around managed IoT service strategies where consumers will be able to implement virtually any application on devices of their choice through access to a holistically managed service that outperforms solutions offered through retail and OTT outlets. Such approaches are made possible through cloud-based IoT platforms that support device-specific connectivity, data transmission flows, security and quality assurance through application of big data analytics.

Cable operators with a mobile service component will be able to support IoT offerings that aggregate whatever specific IoT applications consumers choose into a unified experience that can be controlled through personalized authenticated access by any household member on any screen.  This is completely in sync with an IoT market increasingly shaped by an operations framework that relies on integrated communications among mobile, sensory and app-specific devices.10

This strategy is well advised in a market where an explosion of IoT applications and devices is expected by various researchers to contribute trillions of dollars to the world economy in the years ahead. For example, a report issued in June 2015 by McKinsey Global Institute developed projections for over 150 use cases that add up to IoT spending of between $3.9 trillion and $11.1 trillion by 2025.11

Looking at IoT adoption from the device perspective, Gartner predicts the number of installed IoT-related devices in homes and businesses worldwide, not counting smartphones, tablets or PCs, will grow to 26 billion by 2020.12 This represents close to a 30-fold increase over the 0.9 billion devices the firm tabulated for 2009. Gartner says that by 2020, IoT component and connectivity costs will be so low that just about everything – light fixtures, windows, doors, appliances, toys and sporting equipment – will be equipped for IoT connectivity to support control, monitoring and sensing.

As Amdocs’ head of IoT marketing Shahar Yaacobi notes, up to now the enterprise side has been the big driver in what until recently was referred to as the machine-to-machine market. In this first phase service providers were largely confined to providing fixed and mobile connectivity while businesses sought out OEMs and applications suppliers for specific functionality support.

Now we’re entering a new phase where the consumer side will play a much bigger role in conjunction with an expanded managed service role for service providers, Yaacobi says. Indeed, in the U.S., broadband household ownership of smart home products is already on a steep growth curve, as evidenced by a report issued late last year by Parks Associates.13 The researcher said ownership of such products increased by 50 percent in 2015 and that 43 percent of U.S. broadband households intended to purchase a smart home device in 2016.

These developments call for a new approach to service provider engagement with the IoT market where the operational challenges are much greater, Yaacobi notes. “In the current wave of M2M activity we have been providing an M2M back-office solution for SIM management, connectivity and billing – a product in use by some of the largest carriers, like AT&T,” he says. “In the next wave there are a number of issues to address stemming from the complexity of the value chain.”

Amdocs sees this wave as concentrated on generating new value for operators through innovative business models and new forms of customer engagements across a vast IoT ecosystem. “Service providers, technology suppliers, developers, OEMs – all the players in the value chain are coming together to create IoT services and we need to offer consumers easy registration and activation,” Yaacobi says.

In this new environment it’s Amdocs’ intention to be “the engine behind offering billing, settlements, IoT services catalogs, collecting usage data and all the other functionalities for supporting cable operators’ journey to offering IoT device and services,” he adds. “Service providers have a real opportunity to monetize their assets by providing a solution for both wholesale settlement and the more complex consumer billing.”

The Amdocs Consumer IoT Marketplace Platform enables operators’ enterprises and OEM partners to bill consumers for the purchase of IoT products and services directly or via the consumer’s service provider bill, he notes, adding that the platform also supports seamless activation of applications across a wide range of connected devices anytime and anywhere. “We have created a strong product using cutting-edge technologies with dozens of prebuilt business processes to provide a lot of value to our customers,” he says.

The Emerging Telehealth Opportunity

MSOs’ move into mobile also greatly strengthens their ability to participate in the emerging telehealth services market, which, so far has been dominated by consumer purchases of fitness-related apps and devices that rely heavily on mobile connectivity. Operators will benefit in terms of customer satisfaction by offering their subscribers access to this growing market sector, which has already reached 42 percent penetration of U.S. smartphone and tablet owners, according to Parks Associates.14

But there’s also a direct monetization opportunity looming in conjunction with the B2B arrangements that will facilitate use of operators’ networks to deliver residential telehealth services. The category encompasses a multitude of applications, from caregiver “virtual visits” utilizing video conferencing in conjunction with remote diagnostic tools to case-specific health maintenance systems such as blood testing and heart monitoring.

Numerous growth projections foresee increasing use of network connections and specialized technology to drive costs down across all tiers of the health ecosystem, including inter-facility as well as residential connectivity. In 2014 BCC Research projected the global telehealth technology market encompassing all networked applications will generate $43.4 billion in revenue by 2019, up from $19.2 billion in 2014, representing a 17.7 percent CAGR over that period.15

In 2015 another researcher, RNCOS, issued a report projecting similar results for the global telehealth market, calling for CAGR of 18.4% with total revenues reaching $41.4 billion by 2020.16 BCC said the home-based telehealth technology share of this spending will grow even faster at 24 CAGR, going from 40 percent of the market to 55 percent and totaling $24 billion in 2019.

Mobile’s Role in Enhancing Commercial Service Revenues

As mentioned in Part 1, mobile brings a new dimension to MSOs’ opportunities in their booming commercial service operations. By leveraging their reach to employees on the go, operators can participate in a wealth of value-added-service categories that are designed to support business activities in and beyond fixed locations.

Mobile is an especially significant element when it comes to enabling MSOs to exploit the power of software-defined wide area networks (SD-WANs), which provide businesses lower-cost, more flexible ways to extend utilization of virtualized cloud resources across multiple locations. As Amdocs’ Doug Fantuzzi notes, SD-WANs have become fundamental to operations across the enterprise market, creating new opportunities for service providers not only to support the SD-WAN connectivity but also to exploit the power of the virtualized operations environment to deliver cloud-based value-added services.

“SD-WAN is a hot use case for business services from a virtualization perspective,” Fantuzzi says. “Eventually everybody is going to have SD-WAN as a foundational service.”

As Fantuzzi notes, the move to virtualization in the SD-WAN space creates a new environment of great significance to value-added service development regardless of whether there’s a bigger initiative tied to Network Function Virtualization (NFV) in play. “Most people think of virtualization as a network play,” he says. “But when it comes to offering SD-WAN connectivity, virtualization is about having a framework on which to build a much more compelling set of services. The combination of mobility and virtualization is a powerful engine for revenue growth in the commercial services market.”

Once operators adapt to working in the SD-WAN environment, supporting value-added applications that rely on virtualization technology becomes second nature, he adds. “People in operations, customer care, order-taking, marketing, sales and other parts of the organization become accustomed to working in a world where assets that used to reside in physical hardware are deployed in datacenters,” he notes.

A key step in leveraging virtualization technology is creation of software-defined virtual private networks (SD-VPNs) that enable VPN provisioning and policy management on a personalized level, resulting in a much lower priced, higher performing VPN service compared to traditional VPN offerings. With mobile connectivity, SD-VPNs become the foundation for offering SMBs of every description as well as larger enterprises a compelling value-added service portfolio.

SD-VPNs can support unified communications across all locations and devices and on-the-go access to cloud-hosted software-as-a-service (SaaS) applications. The significance of the opportunity is reflected in a global survey of SMBs conducted by researcher AMI-Partners,17  which found SMBs prefer bundled SaaS offerings over single services by a margin of four to one.

Bundling of SaaS services as part of the operator’s branded offering not only can drive new revenue; it can ensure the cable operator remains the primary point of contact with business customers as IT operations become ever more dependent on cloud-hosted software systems. This phenomenon is especially significant in the SMB sector where smaller companies that once couldn’t exploit the benefits of high-priced advanced software systems can now access such systems without incurring big upfront costs.

The key to successful execution of this new service paradigm is a back-office system that provides automated support for execution of responsibilities across all these departments. For example, the value-added service platform must be able to automatically provision applications over the VPNs in response to commands from self-help portals as well as from customer service representatives and sales agents.

Through service provider-enabled dashboard control, customer administrators must be able to manage usage and other policies on a per-employee basis and set up access for outside collaborators as they’re brought in to work on specific projects. And, of course, all of this brings into play the need for back-office systems that support engagements with third-party suppliers, including financial relations, marketing tie-ins and much else.

It’s also important to note that support for value-added-service taps into quality-of-service support for basic connectivity where all relevant information from network, IT, CRM and other systems must be aggregated and analyzed to ensure SLA commitments are met. This requires analytics that can perform proactive applications management as well as proactive, real-time network-wide surveillance and fault management.

Providing support for all these capabilities is a top priority at Amdocs, Fantuzzi notes. “We are in the process of operationalizing virtualization for cable operators and their commercial services customers,” he says. “Everything from ease of ordering to ease of provisioning to ease of usage is already integrated as part of our end-to-end B2B back-office portfolio. We hide the details and take the complexity out of the equation.”

With such support even the smallest business who buys connectivity from the cable operator can gain portal access to value-added services that can be easily provisioned as a la carte options, elements of tiered packages or special promotional offers. “Your customer can click on anything from a wide range of options and have the application working within 30 minutes and integrated into their billing without any manual intervention or truck rolls,” Fantuzzi says.

Along with enabling such capabilities, Amdocs has taken another step in the direction of facilitating monetization for commercial service providers through collaborations with public cloud service operators. Cloud-Fusion is a joint Microsoft-Amdocs solution that enables service providers to move up the value chain by offering enterprise connectivity, security and cloud services. Optimizing the hybrid cloud – i.e., any combination of enterprise cloud, Microsoft public cloud and service provider cloud – enables economical, reliable and secure infrastructure on which enterprises can run business critical applications and workloads.

Cloud-Fusion combines Microsoft Azure’s cloud infrastructure with Amdocs’ NFV orchestration solution, which continuously designs, fulfills and assures network services from any virtual network function (VNF) vendor, Fantuzzi explains. “Once we’ve integrated a partner like Azure into our solution, our customers can expose whatever they want from that app portfolio to any given mix of enterprise users with assurance they can order any of those options and have them operational on their sites within minutes from confirming the order,” he says.

Conclusion

Much commentary has been directed at the high hurdle MSOs face entering a saturated mobile services market. Indeed, from the perspective of traditional approaches to driving revenues in the cellular business, the most cable operators might expect from entry into mobile is whatever they can gain by providing their subscribers a cable quad-play option that retains their engagement when they are on the go.

But, in truth, perhaps more than cable strategists have realized in the crux of dealing with seismic shifts in consumer behavior, adding mobile to their service portfolios opens the door to a world of monetization opportunities that are intrinsic to business models that will drive success in the years ahead. As described in the foregoing pages, the impact of mobile on business transformation can extend across every aspect of MSOs’ engagement with the consumer and business sectors.

Seen in this light, the need to adopt advanced back-office functionalities in conjunction with use of big data analytics has become mission critical. Every monetization strategy articulated here would be impossible to execute without such support.

1 Ooyala, Q2 2016 Global Video Index, August 2016

2 Tech Crunch, Mobile Ad Market Spending to Hit $18BN in 2014, January 2014

3 Mediapost, Mobile Ad Spend Nears $100 Billion, June 2016

4 eMarketer, Mbile Ad Spend to Top $100 Billion Worldwide in 2016, April 2015

5 Nielsen, Pilot Program for New Content Ratings, April 2013

7 ScreenPlays Magazine, DTC Strategies Are Now Pervasive Among TV Nets, February 2016

9 ScreenPlays Magazine, NSPs Reach IoT Decision Point on SaaS vs. In-House Strategies, November 2015

10 Information Week, Apps to Unite Smartphones, IoT, April 2015

11 McKinsey Global Institute, The Internet of Things: Mapping the Value Beyond the Hype, June 2015

12 Gartner, Inc., Forecast: The Internet of Things Worldwide, December 2013

13 Parks Associates, Smart Home Device Report, December 2015

15 BCC Research, Global Markets for Telemedicine Technologies, September 2014