Along with the continuous development of mobile communications network and abundance of Internet services, people’s requirements for data traffic have been increasing, so the main revenue source of operators is transferred from voice, SMS, to data. China Mobile implemented traffic management in 2013 and China Unicom and China Telecom followed it subsequently. China’s three major operators have gone through four years along the road of traffic management and now they are in the innovative operation stage in this fifth year.
ZTE’s traffic management products help operators to innovate traffic products
Following continual optimization and reform, ZTE products for traffic management provide mature solutions and richer functionalities. An operator can combine traffic products according to the traffic volume, time, duration, speed, direction, and location to provide extensive traffic services such as hour bundle, holiday bundle, campus bundle, home traffic sharing, enterprise traffic pool, enterprise traffic bundle, and QoS assurance services. Therefore, these products are closer to the traffic requirements of their consumers and provide the operator with a good basic support for traffic management innovation.
Collaborative operation for a win-win situation
In the traditional mode, ZTE only provides the system platform for the operator. Now, to provide a one-stop solution for the operator, ZTE enters into strategic collaboration with Sichuan TROY Information Technology Co., Ltd (also a CP for the operator) in the following way: ZTE provides the platform equipment and technology assurance and TROY provides the operation support and marketing resource investment to jointly pioneer the customer-oriented Internet traffic management mode. As the operator’s system and HR resources are limited, TROY spares dedicated promotion expense as required to rapidly acquire the revenue from the registered customer’s cost in multiple channels through direct cost motivation. In addition, it helps increase the volume of the traffic management platform rapidly by monetizing the preferential traffic directly by means of cash red packets and others according to the ratio between the settlement revenue and the dedicated cost.
In terms of management mode, ZTE’s traffic management project has made a breakthrough in two aspects: One is to truly provide the one-stop solution instead of the system platform; the other is that all parties play their respective advantages and jointly promote traffic operation in the operator market in flexible business models (traditional sales + revenue sharing).
Innovative operation and remarkable performance
In the project office of Ningxia Unicom, ZTE has collaborated with the operator by providing the flexible traffic product customization function on ZTE’s traffic management platform. With TROY’s effective marketing planning, after half a year of promotion, over 40 percentof the data users of Ningxia Unicom have registered on the traffic management platform, and 50% have purchased products with monthly per capita consumption of RMB13, significantly promoting the KPIs of DOU & traffic revenue and winning acclaim from the operator. Meanwhile, TROY has recovered the cost within less than one year. ZTE has also achieved a higher sales figure in the project in comparison to the purchase bidding mode made by the operator. The collaboration among related parties has taken effect even in the early stages. Both parties have signed a strategic collaboration agreement to make a large-scale layout of the project. The traffic management service is well on its way to seeing a profitable payback period.