Are CSPs missing a New Source of Revenue?
Increase your ARPU. As CSPs, this is the only problem that is on your mind.
Telecom subscriber base is growing, but the ARPU is eroding. Globally, telecom providers are experiencing a 10-year low ARPU. Increasing the tariff is not the obvious answer to this problem. Customers already have the solution to this. The solution is the Smart Home Opportunity. Demand for smart home services is on a rise. And, CSPs are at a sweet spot to capitalize on the growing demand.
Here is the hint. An exponential rise in data usage. 80% of mobile users have moved to other OTT messaging players such as Whatsapp, WeChat, and Telegram. Their voice calling preferences have moved to services such as Skype, Zoom, etc. This number is growing as you read this article, dropping international voice call rates to almost $0. While this may seem like intimidating competition, it is a huge opportunity for CSPs.
The Opportunity – Bundling data usage with the Smart Home
Smart homes thrive on data connectivity and bandwidth as much as electricity. The Internet is fundamental. Smart homes consume more than one service with a single set of devices. Bundling interoperable devices with OTT services is how you get your foot in the door. Smart home consumers are already ready to pay for services that provide security, connectivity, energy conservation, assisted living, healthcare, safety, and convenience.
The underlying differentiator that would help you gain immediate revenues with your existing subscribers is the shortest time to market with maximum innovation.
“A Smart Home IoT Platform that can support you with technology to launch bundled services, including devices and apps would get you to market in as less as four weeks.”
Increase ARPU by $77.
Here are some bundles that are ready to be launched with a full-fledged technology in place, a fully managed smart home platform supported by an operator console, an IoT app store, and a free smart home app.
Offer a smart environment and more connectivity with sensors. Creative home automation routines and scenes can be implemented with a combination of motion sensors, contact sensors, air purifiers, water leakage sensors, fire alarms, heat sensors, humidity sensors, smoke alarm, and smart siren. These are well-tested and certified devices that ensure safety compliance and safe homes.
Security at the home front is also on the rise as much as for the commercial and industrial sectors. Residential security can be fulfilled with a combination of sensors and security cameras. The best selling option is a bundle of window and motion sensors integrated with indoor and outdoor cameras, lighting systems, and temperature management. It is preferred for intelligent automation possibilities and energy conservation advantages.
Basic health concerns can be addressed with fire, water leaks, and volatile organic compounds (VOCs) detection using a variety of sensors. Repurposing the sensor installation can add another service of safety, integrating the sensors with the smart doorbell for front door visitor management.
Assisted living is another extension of the health bundle. With local and remote push notifications activated, integration of sensors with a panic button, smart siren, and security keypad could be another off-the-shelf offering.
Connectivity & Conservation bundles
While conservation is an immediate need, connectivity will grow with increasing distances and autonomous devices. Connect the Car with a car OBD and motion sensors with the connected home for real-time location tracking and vehicle diagnostics.
Intelligent energy management is a common customer ask. With a combination of energy meter interface, IoT gateway, smart switch, triple 3-phase meter, smart relay, and smart plug energy bundles can be rolled out. COCO devices are Zigbee Smart Energy Compliant. You could promise your customers with non-Intrusive load monitoring, personalized conservation recommendations by AI-based Energy Assistant, and real-time dashboard with Smart Zones Management.
Customize your own bundle
You already know what your subscribers are looking for. You can use a combination of devices with COCO and anywhere else in the market to create your own bundle. This would still work because all COCO devices are interoperable. The underlying COCO technology also allows any Zigbee, Zwave, BLE, or wireless smart device to interoperate with each other as well as with COCO devices and apps.
How CSPs gain ARPU on 1 million subscribers?
We have numbers to support your decision. COCO’s business value proposition can add $77 revenue per user. With $77 added as revenue to each subscriber, a million smart home users would add $77 million to your bottom line in a year. This comes with a 31% profitability on each user and a reduced total cost of ownership (TCO).
For further details, feel free to contact a COCO expert.