Events
Expanding cellular operator customer base
Introduction
The operator subscriber bases (the number of subscribers and active SIM cards) have stopped growing in Russia following the same stoppage in Europe. In Q2 2013 this number amounted to 234.11 million increasing by scanty 1.6 % if compared with 230.4 million of Q1 2013. In Q3 2013 the number of cellular communication subscribers in Russia increased by 2.3 % reaching the level of 239.521 million (the number of SIM cards). These data are provided in an analytic report of Advanced Communications & Media (AC&M). The operators have to control subscriber acquiring cost incurred through their dealers to protect against losses. Therefore, the top three Russian operators lowered the connection fee by average 30 % to 40 % in 2013.
Due to the decrease of APRU (average revenue per user), the operators have to search for new ways of accruing revenues from their subscribers. In general, the subscribers themselves are tired from overrated communication and roaming rates. Therefore, they are searching for solutions, such as the use of several SIM cards of different operators (the statistics shows that more than 60 % of subscribers use 2 and more active SIM cards of different operators).
Loyal subscribers (who never change their operator for their whole life)
use the social networks and information services by 40 % lower than disloyal
ones. They also use the phone for payment for services and products, as well as
for entertainment more rare (by 50 % and 30 % correspondingly). Their demand for mobile internet is lower by 40
%, and they use the mobile communications for business by 45 % more rare, i.e.
their APRU is by 40 % lower than that of the disloyal ones, isn't it?
These challenges can be met with the new concept of extra degree of freedom, approving actually their disloyalty by the use of a special multi-SIM card with the relevant infrastructure. In the nearest future the role of such device can be played by MD SIM (a mobile communication operator selection and connection device, the Russian patent No. 132659, made as a contactless card) or its advanced counterpart UPRA (a multi-functional mobile communication subscriber identification unit, the Russian patent application No. 2013144162).
General
The modern mobile communications technologies are evolving continuously. Therefore, the standard SIM card will be consistently substituted by MD SIM/UPRA for controlling the smart phone in the integrated or remote mode with various functions of communication control integrated into device menus combined with the user-friendly Multi Dynamic SIM. In such situation, dynamic users of mobile communications who already use several SIM cards (replacing them or using multi-SIM phone) will appraise the convenience of such device allowing for using premium smart phones without constant replacement of SIM cards. As for the operator, APRU for such users will be at least the same, if not higher, since the subscriber can select any available SIM more frequently without any inconveniencies relate to replacement or loss of the SIM card.
Therefore, solution for the problem of MNP (Mobile Number Portability), actively promoted by the Russian authorities that is unpopular among telecom operators due to evident economic reasons can be implemented alternatively: the operators will retain available subscriber number capacity, but mitigation to a new number will be facilitated by the use of MD SIM card.
The conception of the use of the Multi Dynamic SIM device as a holder of several selectable cards is simple and clear. But UPRA chip able to sore and use data from several SIM cards of various operators that can be installed in the standard SIM slot has wider capacities.
At the same time, the user must visit the operator office only once to receive the UPRA card. Afterwards, he/she can download new subscriber profiles using his/her own account interface for flexible management of his/her SIM cards.
Such approach allows the telecom operators to exclude SIM card cost from their expenditures, since the UPRA device will be produced by a specialized operator, and the telecom operator should install the secure system of sharing subscriber profile data downloaded into UPRA.
At the same time the available subscriber data base for any telecom operator becomes the same as the base of issued UPRA, since any operator profile can be downloaded to the device. Subject to reasonable marketing, such policy will allow for increasing profits and APRU, since the new user rate is available within his/her account, rather than in a local operator office.
A meticulous subscriber will definitely ask about protection of UPRA in the case of the loss/theft of his/her smart phone. In such situation the security level is equal to that of the standard SIM card and higher, and the user/operator should not worry about unauthorized access to the card. Moreover, the developers of such devices pay special attention to the data protection level under applicable international standards. Thus, each of cells containing the subscriber profile can be protected with its own PIN code save that required to the access to UPRA itself.
Application
The use of the following advantages of a separate non-basic operator is the most vivid benefit for a subscriber owing MD SIM/UPRA card: voice and data communications, benefits of billing linked to day/night time, extra services and content. Subject to his/her location, day or night, bonuses, etc., the subscriber can select the relevant operator.
This device is not limited by selection of any cellular communication subscriber profile in UPRA and their on-line download. The designers fitted UPRA with the social data unit that can be used also with the help of NFC integrated antenna in the contact way. This unit can store individual data of the user (his/her name, photo, passport data, fingerprint scans, pension certificate and individual tax codes, etc.). These data will be verified by the UPRA operator for their validity before entering. It means that the data downloaded to such secure media as UPRA can be used as:
• ID card/Passport/Driver License/Individual Taxpayer Code/Pension Certifiate
• Biometric International Passport
• Mobile Bank
• Multi-functional Transport Ticket (subway/motor/air/railway)
• Medical/Car/Travel insurance
Therefore, on deployment of UPRA the service providers (banks, mobile operators, retail) do not have to implement their own user authorization system, since UPRA has all required technology and infrastructure solutions. As the single access point with verified personal data, UPRA can be used also as an identification service for the electronic government. This capacity will help the cellular operators to gain extra profits. All problems related to compatibility with the electronic government will be solved at the UPRA level, rather than at that of providers.
M2M (machine-to machine) dialogue
Such interaction is becoming more strong and fast in the age of continuous progress. Berg Insight has assessed the annual global growth of M2M connections in mobile communication to be equal to 37%, and in the Pacific Rim it grew as high as by even 64%! On the other hand, Harbor Research and its analysts believe that modern fleet of fixed devices with M2M connections exceeds 5 billion units, and that of mobile ones amounts to over the quarter of billion. The above statistics shows that the whole world is migrating to digital M2M interaction in operational and consumer communications.
In the case of M2M devices sometimes it is difficult to replace its SIM card to select another rate or operator; and if the card is integrated into the device, it is actually impossible. In such situation it is necessary to change the rate or the operator remotely complying with IT security requirements. UPRA will have all technology capacities required to provide M2M devices with tools for remote control of the subscriber profile.
Summary
Now telecom operators, banks and other service providers are trying to solve the problem of decreasing revenues and offer new services to their customers within their capacities. The whole world is following the path of globalization and aggregation of separate functions in hands of providers of special functionalities. And operators still retain the function of managing subscriber profiles. The cost of maintaining this function increases every year without any effect on revenues collected from subscribers. Sooner or later, this fact has to be recognized to select the aggregation way finding a solution to manage subscriber basis implementing the win-win concept for operators and devices managing subscriber profiles, such as UPRA.
