It pays to be disruptive; value added services enhance ISP growth

In a recent research report leading telecoms vendor Ericsson in collaboration with consultancy firm Ernst & Young ask the question; What Makes a Successful Telco Business strategy? The study released last week clearly outlines the strategies “frontrunners” are taking in the telco space.

The study found that front-runners, those ISP’s who have rapidly growing market share in their respective regions were most likely to be ranked around third by market position.

Frontrunners are identified by using three sets of criteria:

  1.     Achieving a healthy annual revenue growth
  2.     Maturity in respect to capturing business through a higher proportion of non-voice revenue
  3.     Remaining profitable through positive EBITDA

CAGR of total revenue per group

The study shows that over the course of four years between 2010-2014, these front runners were outperforming their competitors by a margin of 6.9% compound annual growth rate (CAGR). That’s pretty significant!

With mobile data use on the rise, as well as traditional revenues coming under pressure, what were the types of strategies being used to produce such outstanding results?

Ericsson found that there were three strategies used by telco providers to improve growth above the market average;

  1. Offering-led transformation: Which refers to operators that differentiate by being first to market with uniquely designed offerings.
  2. Quality-led progression: Where operators differentiate through high-performing networks and high brand preference.
  3. Market-led adaptation: Includes those operators that differentiate through quick adaptation to market conditions.

Frontrunner strategies

During the period of the research, there has been a significant shift in the strategic approach frontrunners are taking. In 2012, the majority of telco’s were leveraging their size and assets to deliver superior quality and thereby achieve profitable growth. With time, we have seen that operators applying other types of strategies are also emerging as frontrunners, indicating that profitable growth can be achieved more effectively by offering consumers additional value.

Frontrunners are outpacing the market by using value-added services that differentiate them from the rest of the market. There is also a strong focus on garnering new revenue streams instead of trying to maximise old ones by voice and by challenging industry conventions to make connectivity more relevant to people, business and society.

Offering led transformation

Bypass is a Value Added Service provider for ISP’s; we provide products for ISP’s that lead to offering led transformation. We have seen our key customers win awards and grow much faster than the market average.

BNSL develops white-label products for ISP’s. We have been in successful in offering Global Mode & Buddy Guard as a point of differentiation for ISP’s which allow them to be first to market with a unique product set. Our operational model has further accelerated demand as, unlike traditional capital-intensive commercial models our products are payable monthly, based on usage.

By shifting a traditional technology cost centre into a marketing profit centre, we deliver valued added products that create value in the mind of the customer. We’ve seen our ISP’s grow exponentially. Get in touch if you’d like to know more about how we can improve your APRU and profitability using an Offering-led transformation strategy.

The full report can be found here!

Bypass proud to sponsor NetHui & lead Net Neutrality debate

Bypass is proud to announce their sponsorship of NetHui 2015, being held by Internet New Zealand. As a team, we will be involved in two workshops;

If you’re not up to speed on Net Neutrality, and how important it is we’ve provided some links to videos below. These videos are about the Net Neutrality issues in India and the US which unfolded as a result of inaction from ISPs. They’re funny, but have a very serious theme.

  1. Last Week Tonight with John Oliver: Net Neutrality
  2. AIB : Save The Internet

Internet New Zealand has also invited everyone to collaborate with them, and the New Zealand Internet Community in understanding Network Neutrality in a New Zealand context!

Click here to view the InternetNZ discussion document, and here to participate in the survey and provide feedback!

Bypass Network Services to launch Global Mode for mobile in India

india, mobile market, geo-blocking, net neutrality

Bypass Network Services Limited (Bypass) is excited to announce an agreement has been reached with Varun Sood to represent Bypass in India. The focus of the partnership is the emerging market of geo-unblocking for mobile providers. The agreement is to provide mobile operators and fixed line Internet providers in India with local market representation for Bypass’ world first geo-unblocking product Global Mode. The relationship is already showing benefits with two prominent ISPs in India undertaking the first stages of due diligence.

Varun, an Oxford Business School MBA, joins Bypass with an extensive background in International Business Development & Strategy. Bypass selected Varun based on his professional experience and business relationships in Asia, Africa, and Europe and the understanding of Net Neutrality principles.

“Now is the perfect time for mobile operators to be considering Global Mode due to the Net Neutrality debate,” says Varun. “Bypass is a strong advocate for Net Neutrality, and deploying Global Mode enhances consumer choice to differentiate a mobile offer in a competitive market to grow revenue.”

Net Neutrality is very important for India’s future economic growth. Global Mode is designed to remove unjustified commercial barriers on the internet which restrict the customer’s right to use the Internet the way they choose. ISP’s who support Net Neutrality should be seriously considering the role they can play in removing geo-blocking at a technical level, not just as a policy statement.

Smart DNS services are estimated to be used by over 25% of global Internet users though mainly technical savvy users. Global Mode is integrated into the broadband network to automatically enable geo-blocking removal for ALL users on the network. Thus, it’s much simpler to implement and increases the value of the connection through bundling.

“Only four countries in the world have this method of geo-blocking removal in place. We’re excited to be working with Varun, helping to open up parts of The Internet in India that have until now been inaccessible. Research has shown that the more The Internet is open, the more economic benefit a country receives.” said Patrick Jordan-Smith, CEO of Bypass.

About Bypass Network Services Limited

Bypass provides PaaS products for residential Internet service providers & mobile operators to rapidly capture market share & reduce churn through differentiating their offer in a competitive market. Global Mode® is the world’s first network level managed geo-unblocking solution. Global Mode® is a PaaS and can be deployed in any size broadband network in under ½ a day.