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Driving Efficiencies In The Provisioning Of SIM Cards
Ovum, June 2010, Pages: 18
In developed markets, operators are facing increased competition, a slowdown in growth, and steady if not dropping ARPU levels. In emerging markets, growth is stronger but ARPU levels are lower. In response, SIM cards are being widely deployed in large volumes, but the costs for this deployment are not as easily covered as in years past, leading operators to scrutinize the SIM card supply chain.
In fact, in many markets there is no longer a one-to-one correspondence between SIMs, devices, and subscribers. The automatic tendency for most customers to stay with one operator can no longer be assumed, and purchase patterns for airtime are increasingly mirroring those of fast-moving consumer goods. In this context, a new approach to provisioning becomes a necessity.
Therefore, a significant opportunity for optimization is to reconsider the point at which SIM cards are provisioned with a telephone number (MSISDN), and the associated provisioning of network elements, such as the HLR (home location register). Implementing technological, and possibly commercial, changes to this process can result in significant cost savings as well as revenue-generation opportunities.
Fast-moving companies such as Evolving Systems are taking advantage of this opportunity and bringing solutions to market. Incumbent providers like Ericsson may also alter their product roadmaps accordingly.
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