Revenue Generation Drives Performance Assurance for SK Telecom

Posted by Mae Kowalke on Monday, July 27, 2015 with No comments

The SK Telecom case study we recently published illustrates the interrelated reasons why Tier 1 carriers are investing in standards-based, end-to-end network performance assurance solutions: ensuring competitive QoS and QoE, cost reductions, asset optimization, and network automation management. But in this case, what stands out is the carrier's primary reason for the solution deployment: revenue generation. 

"SK Telecom is in a mature market facing challenges on growing ARPU," noted David Dial, Accedian VP of International Sales. "The number of new customers they can add is limited."

What that means, Dial elaborated, is that growing ARPU is dependent on persuading customers to spend more on mobile usage, a value proposition that relies on meeting very high QoE targets.

"Aligning their network to the sensitive parameters of the LTE/VoLTE radios allows SKT to offer new services as well as grow ARPU through increased usage of the network," he explained.

That's a very different focus from how mobile carriers have traditionally tended to view QoE-related infrastructure investment: a 'nice to have' rather than a necessity. As this market continues to mature and evolve toward 5G, no doubt we will see more of this shifting focus as carriers adapt.