In a market where connectivity prices for IoT (Internet of Things) services are reducing rapidly or where service providers or MVNOs (Mobile Virtual Network Operators) are reselling services, there are pressures on direct margin pricing models. To grow your margins, service offerings need to be looked at differently.
The simple inclusion of Usage can provide higher growth on a device-by-device basis, but it is limited. More advanced methods of providing usage inclusion and sharing are where higher-margin growth potential and customer value can meet together.
Shared Usage / Pooling Basics
Extending usage inclusion into plans that can be shared or pooled through a number of IoT devices or accounts is a common practice to provide value and increase over-subscription margins.
In the IoT market place the concept of unlimited usage doesn't work.
You are either dealing with small amounts of messages per month or a possibility of run away costs from overactive or defective devices.
Many operators or systems can only offer basic inclusion which is typically limited to domestic traffic and/or does not include roaming.
Applying Rules for more Flexibility
IoT service providers are asking for more flexible inclusion capabilities. Their consumers are wanting usage included across roaming carriers or platforms. They need an inclusion process that doesn't allow for the greediest devices to consume all or the majority of the usage in a pool.
They also want ways to limit the amount of usage inclusion into a pool based on the product a device is associated with.
Service providers and consumers also need notifications to alert them of higher than expected usage.
For IoT service providers, having advanced control, alerts, and limits that can extend over multiple networks is going to give them security in providing inclusions as well as build up more margin and negotiating power with their carriers.
Measure, Adjust and Grow Margins
To grow margins on IoT products, the complexities of usage consumption need to be analyzed with some product suggestions provided as the outcome.
Tying this data into product rebuilds, automatic carrier assignments, or offering cross-carrier bucket inclusions for roaming are all ways that can improve uptake and grow IoT service providers' margins.
Identification of best and worst-case devices and consumers also helps direct sales and product teams in tackling the issues preventing margin growth or focusing on the types of implementation needed for the highest margins.
How We Can Help
LogiSense is known for supporting complex usage rating and usage inclusion.
The application has the capability from simple device-level allocations to the complex rules-based configuration of share plans. These can be used across multiple products and carriers finally to plans tied in with contract ramp-up commitments or device connection growth.
Use the flexibility of the LogiSense billing platform to find unlimited combinations of usage inclusions to meet customer demands.
LogiSense also has the ability to provide the analytical data necessary to take the use of device inclusions and traffic and provide information on margin utilization that can guide product offer and development.
See what LogiSense can do for you.
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Chris Brown /
Chris has over 20 years of experience in the telecommunications industry dealing with Fortune 2000 enterprises and service providers globally. As VP of Innovation Chris interacts in the market and internally providing: technical leadership and vision, mentorship, and creative problem-solving.
