Megabytes is NOT cool!
The sale of megabytes gives rise to concerns on the part of subscribers and the growth of CAPEX in infrastructure by mobile operators.
Megabytes (hereinafter simply MB) have never been a product with a human face, nor a unit of measure for services in the mobile Internet - you buy another!
Analogy. Imagine that the pricing of your hairdresser has become “megabyte” - from now on the price of the issue is determined by the amount of trimmed hair.
Naturally, you would have sent such a hairdresser far away and turned to another. Because you do not pay for the amount of hair, but for the result.
')
Comparing the logic of the above analogy with your daily consumption of MBs, it follows that you can google, sit on social networks, listen to music, watch videos, receive mail, talk on Skype ... but you cannot translate these actions to MB. For you, this time, quality (video (SD, HD), sound (mono, stereo, Dolby Digital)), “pieces” (files) and user experience that you experience when receiving online service.
Megabytes - a measure of traffic calculation and nothing more.
Example: when downloading a 10 MB file, you may be charged 11 MB of money ...
- familiar? With all this, the operator does not deceive you here. One extra MB is a TCP retransmit that appeared, for example, because of your bad radio conditions (you sat and rocked the file in the elevator).
But the flip side of the medal is why the sale of MBs, which seem to be extremely profitable for operators, turns into a long-term increase in CAPEX into the existing infrastructure, a disproportionate increase in revenue.
How is the choice of the operator for the connection, for example, a tablet?
The most likely answer is which of the operators will sell more MB for the same price (subscription fee). Therefore, the decision factor is the cost of 1 MB. Who is cheaper - that, most often, all other things being equal * we choose.
* - we will talk about the quality of the mobile Internet in the following publications.
So, what happens with the cost of 1 MB? We look at the chart:
ARPU DU - Average revenue from data transfer service per subscriber.
DSU - Average MB consumption per month per subscriber.
Cost MB = ARPU DU / DSU
The cost of MB falls. In 2012, it fell by 43% from one market leader. Read again - the service has fallen in price by 43%. That, of course, is good. Everyone is happy. Subscribers are happy, because they are buying more MBs for almost the same money, the “marketing” departments of mobile operators are happy to fulfill their revenue plans. Bonuses ... you understand ...
But the problem is that the number of MBs has increased, but basically no more base stations have become. As a result, 2G / 3G networks of operators are overloaded. Service quality falls "below the baseboard."
- Which exit?
- Build new base stations (hereinafter simply BS)!
- The answer is incorrect. It is impossible to build, since the growth of CAPEX adversely affects the value of shares.
Here is another example. There are such solutions - video optimizers. Without going into details, they can significantly improve the quality of mobile video and are incomparably cheaper than new BSs.
- We must take!
- The answer is incorrect, as a side effect of the video optimizer is a reduction in the number of MB transferred to subscribers to view the same video from an unloaded BS.
- And what are the operators doing?
- Refuse video optimizers. Give the country "hair")!
An indirect confirmation of the “difficulty” of selling MBs is the attempts of mobile operators to explain to subscribers that 1 gigabyte is a lot! The number of these attempts made by all operators proves their futility. Examples:
Also, operators are trying to find a way out of “resource” pricing, for example:
“-It’s hard to explain in a nutshell, by example:
You work at the plant, from year to year you plow and plow, gradually save money. At one fine moment, you have enough money to move to the village. You buy ten eggs and take out chickens from them. Feed them, water them, take care of them, they grow up and start to lay eggs. And you have them in the incubator and now you have thousands of chickens. You take care of them and now you have thousands of adult chickens. And these thousands of chickens are beginning to carry eggs - you are already a cool farmer! And then the flood is a complete “collapse”! And all your farm washes away, all drowned, all washed away ...
-And what to do?
“Ducks!”
We believe that:
In telephony, the pricing model is clear and transparent: the less you speak, the lower the bill. The further you call, the more you spend.
Mobile video streaming already takes from 30 to 60% in the band of mobile operators and according to all forecasts it will grow.
Video streaming is not only one of the most “difficult” traffic-intensive types from the operator’s point of view, but also one of the most understandable for the subscriber.
- Why?
- The subscriber from the very beginning knows how much he can spend time watching a video on youtube or a movie on ivi.ru. Well, and ask him to pay for the actual video minutes. I watched 5 minutes of the film, attention, not calendar minutes, but actual minutes of the film - pay for them. I looked 10 minutes - you understand that they will write twice as much. I chose SD quality of the content - you can immediately see that it costs less than HD. Stopped watching the movie - the cancellation stopped.
- Transparent to the subscriber?
- Yes.
- Consumption of a scarce network resource correlates with operator's revenue?
- Absolutely!
We specifically left several answers beyond the scope of this article that answer the “how?” Questions only for the purpose of reducing the material. In the following materials:
- we will tell “how”
- answer your questions
- let's open the topic of quality: if the subscriber paid for video minutes, and the network “slows down”, then the subscriber again feels unhappy and deceived
We thank you for your attention.
Yours sincerely, VIGO team.
Megabytes (hereinafter simply MB) have never been a product with a human face, nor a unit of measure for services in the mobile Internet - you buy another!
Analogy. Imagine that the pricing of your hairdresser has become “megabyte” - from now on the price of the issue is determined by the amount of trimmed hair.
- Halfway through, the hairdresser asked you to pay extra, since you chose the limit on the number of cropped hair that was included in the million-hair package for the whole family. If you can not pay extra, you have to wait until tomorrow. In the meantime, and so walk around.
- The hairdresser offers to buy the option “extend the package of hair” - the option includes another 250,000 hairs, so you can save 10 cents on each hair cut.
- In response to your question “is this package enough for me?” The hairdresser shows a photo of the boy, claiming that he has about 250,000 hairs, and offers to make a decision on his own or leave without bangs and thinning.
Naturally, you would have sent such a hairdresser far away and turned to another. Because you do not pay for the amount of hair, but for the result.
')
Comparing the logic of the above analogy with your daily consumption of MBs, it follows that you can google, sit on social networks, listen to music, watch videos, receive mail, talk on Skype ... but you cannot translate these actions to MB. For you, this time, quality (video (SD, HD), sound (mono, stereo, Dolby Digital)), “pieces” (files) and user experience that you experience when receiving online service.
Megabytes - a measure of traffic calculation and nothing more.
Example: when downloading a 10 MB file, you may be charged 11 MB of money ...
- familiar? With all this, the operator does not deceive you here. One extra MB is a TCP retransmit that appeared, for example, because of your bad radio conditions (you sat and rocked the file in the elevator).
But the flip side of the medal is why the sale of MBs, which seem to be extremely profitable for operators, turns into a long-term increase in CAPEX into the existing infrastructure, a disproportionate increase in revenue.
How is the choice of the operator for the connection, for example, a tablet?
The most likely answer is which of the operators will sell more MB for the same price (subscription fee). Therefore, the decision factor is the cost of 1 MB. Who is cheaper - that, most often, all other things being equal * we choose.
* - we will talk about the quality of the mobile Internet in the following publications.
So, what happens with the cost of 1 MB? We look at the chart:
ARPU DU - Average revenue from data transfer service per subscriber.
DSU - Average MB consumption per month per subscriber.
Cost MB = ARPU DU / DSU
The cost of MB falls. In 2012, it fell by 43% from one market leader. Read again - the service has fallen in price by 43%. That, of course, is good. Everyone is happy. Subscribers are happy, because they are buying more MBs for almost the same money, the “marketing” departments of mobile operators are happy to fulfill their revenue plans. Bonuses ... you understand ...
But the problem is that the number of MBs has increased, but basically no more base stations have become. As a result, 2G / 3G networks of operators are overloaded. Service quality falls "below the baseboard."
- Which exit?
- Build new base stations (hereinafter simply BS)!
- The answer is incorrect. It is impossible to build, since the growth of CAPEX adversely affects the value of shares.
Here is another example. There are such solutions - video optimizers. Without going into details, they can significantly improve the quality of mobile video and are incomparably cheaper than new BSs.
- We must take!
- The answer is incorrect, as a side effect of the video optimizer is a reduction in the number of MB transferred to subscribers to view the same video from an unloaded BS.
- And what are the operators doing?
- Refuse video optimizers. Give the country "hair")!
An indirect confirmation of the “difficulty” of selling MBs is the attempts of mobile operators to explain to subscribers that 1 gigabyte is a lot! The number of these attempts made by all operators proves their futility. Examples:
Also, operators are trying to find a way out of “resource” pricing, for example:
- “0 rubles for X.com” - a paid tariff is formed by the operator, which includes several popular services on which the consumed traffic is not considered *.
Under "*" they write that when downloading photos, video, audio, traffic will begin to be charged in accordance with standard rates.
The disadvantage of this approach is that if the subscriber only does what he sees “cats” on X.com, then the traffic is charged as usual, based on their consumed MB (. - “Subscription N rubles / day for unlimited access to Y.ru” - the operator opens a separate subscription, when connected to which, all subscriber’s consumed traffic on the Y.ru resource is not considered *.
By “*” it is written that traffic from other resources, the content of which is present on the Y.ru resource, will be charged in accordance with standard tariffs.
The minus for the subscriber is that all the content on Y.ru, which he can watch, is actually distributed from X.com. It is also common for a subscriber to forget about such subscriptions, which may lead him to unpleasant surprise when seeing a mobile phone bill ((((.
- What to do?
“-It’s hard to explain in a nutshell, by example:
You work at the plant, from year to year you plow and plow, gradually save money. At one fine moment, you have enough money to move to the village. You buy ten eggs and take out chickens from them. Feed them, water them, take care of them, they grow up and start to lay eggs. And you have them in the incubator and now you have thousands of chickens. You take care of them and now you have thousands of adult chickens. And these thousands of chickens are beginning to carry eggs - you are already a cool farmer! And then the flood is a complete “collapse”! And all your farm washes away, all drowned, all washed away ...
-And what to do?
“Ducks!”
We believe that:
- Resource mobile network a priori can not be cheap. There are natural limitations.
- The service of the PERDY (this is the name of the mobile Internet in the slang of the operators) should be understandable to the Subscribers:
- The subscriber must understand at any time how much it will cost him, for example, to watch a particular movie, download a file.
- The quality of mobile Internet services should be predictable.
Talk and watch video every minute
In telephony, the pricing model is clear and transparent: the less you speak, the lower the bill. The further you call, the more you spend.
Mobile video streaming already takes from 30 to 60% in the band of mobile operators and according to all forecasts it will grow.
Video streaming is not only one of the most “difficult” traffic-intensive types from the operator’s point of view, but also one of the most understandable for the subscriber.
- Why?
- The subscriber from the very beginning knows how much he can spend time watching a video on youtube or a movie on ivi.ru. Well, and ask him to pay for the actual video minutes. I watched 5 minutes of the film, attention, not calendar minutes, but actual minutes of the film - pay for them. I looked 10 minutes - you understand that they will write twice as much. I chose SD quality of the content - you can immediately see that it costs less than HD. Stopped watching the movie - the cancellation stopped.
- Transparent to the subscriber?
- Yes.
- Consumption of a scarce network resource correlates with operator's revenue?
- Absolutely!
We specifically left several answers beyond the scope of this article that answer the “how?” Questions only for the purpose of reducing the material. In the following materials:
- we will tell “how”
- answer your questions
- let's open the topic of quality: if the subscriber paid for video minutes, and the network “slows down”, then the subscriber again feels unhappy and deceived
We thank you for your attention.
Yours sincerely, VIGO team.
Source: https://habr.com/ru/post/214083/
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