Alternatives to static product bundling: Usage-based discounting and dynamic bundling
With the commoditization of basic services, communication service providers (CSPs) are finding new ways to increase average revenue per user (ARPU) and retain customer base. Cross-selling and upselling through bundles and periodic promotions are universal choices to increase revenue and attract new customers. Bundles provide attractive discounts in a package, compelling customers to buy more products. This in turn increases monthly revenue per user. However, bundles are static in nature and their introduction adds complexity into IT systems. This limits CSPs’ speed to launch new offers in the market. Additionally, the number of bundles keep growing as there are unlimited combinations, through which products can be mixed and sold. This makes IT systems inundated with static rules. For CSPs, this puts a heavy limitation on their systems’ flexibility for future changes and increases operational costs.
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Sunil Kumar Ojha is a Group Project Manager in the Energy, Communications and Services business unit at Infosys. He is a seasoned IT management professional with more than 14 years of rich experience in OSS/BSS landscape of the telecom industry. In his tenure, Sunil has played several roles including account delivery manager, portfolio manager, program manager, and project manager. He has also managed large and complex transformation programs for leading telecom service providers across the US, Europe, and APAC regions, in areas such as selling, ordering, product cataloguing and PLM, service provisioning and activation, pricing, and business intelligence.