The surge in video data traffic has received a range of reactions from mobile operators over the last couple of years. Many experienced an overwhelming feeling of panic in the realization that they had no sure-fire way of coping, never mind making a profit from it.
One thing became clear -- video is here and it’s here to stay, as more and more consumers discover ways in which they can enjoy and incorporate mobile video into their lives. But will video be a curse or might it even be the cure for operators’ monetization problems?
Some operators in developed markets have up to now viewed the swell of video data as a simple black-and-white opportunity to make more money – the more data you use, the more you pay. Consumers who use more data through steaming videos have to pay more for a higher tariff to satisfy their video needs. Simple!
But is it the most user-friendly way? How many users can honestly say they know exactly how much data usage they are entitled to with their tariff?
Most consumers would probably admit that they haven’t really got a clue how many emails, Facebook visits or YouTube videos make up a 500MB plan, or even how much data they are actually using per month. When this degree of uncertainty is so widespread, the potential for shock, disappointment and ultimately churn is never far away.
However, some operators are now beginning to seek more intuitive ways of charging for data, in particular around video. Through application-based mobile data charging, operators can give their users a flexible tariff that meets their needs, engages them with their data usage while monetizing video for the operator.
For example, a carrier might decide to give users plans with basic data usage, everything except video data for example, for a much lower amount per month. Then if a consumer needs to use video data they are charged extra. If subscribers find that they need to use video data more frequently than expected, they are given the choice to add video data onto their tariff for a day, a week or a month. By doing this, users can adapt their plans to suit their needs and video consumption preferences.