A new survey from Evolving Systems, Inc. (NASDAQ-EVOL) reveals the potential for European telecoms operators to tap into new revenue streams by delivering number choice and other personalized service offerings to prepaid customers.
The survey, carried out in spring 2010, polled the views and opinions of 500 prepaid mobile phone subscribers across the UK, France, Germany, Italy and Spain.
More than 30% of respondents in each country said they would be prepared to pay a premium for the ability to select their own number – depending on cost. The proportions are highest in France (45%) and Italy (43%).
Of those users who stated they would be prepared to pay a premium, around 25% said that they would pay between €6-50 (between £6 and £50 in the case of UK users). France had the most engaged set of respondents in this respect with 31% fitting into this category.
“These figures will give wireless operators food for thought,” says Evolving Systems’ Chief Technology Officer, Stuart Cochran. “If operators could convert these percentages of their prepaid mobile subscriber base to number personalization, they would gain a significant incremental revenue source. There clearly is a potential market in these key European countries for personalized number selection and it is equally clear that this market remains largely unexploited so far.”
The survey finds that only a small proportion of prepaid users have ever been offered the opportunity to select their own mobile number. Just 13% of prepaid French users (and only 21% of those in Italy), for example, had been given this option when buying a prepaid SIM card.
Available Options
When prepaid users are offered number choice, it is typically provided through a retail store. This option was the most popular route in every country surveyed apart from Germany. Very few subscribers had been offered a choice of numbers via their mobile phone screen. In Italy, just 3% of those prepaid users, who had ever been given the chance to select their own mobile number, had been offered it in this way.
Yet, when asked how they would like to choose the number, selecting it via the phone’s screen scored well. In the UK, it is clearly preferred to going into a retail store and being helped by a salesperson and in every other country surveyed it is at least competitive with that option.
According to Cochran, “This underlines the potential of a different approach to provisioning such as our own Dynamic SIM Allocation™ (DSA) solution, for example, that offers personalization such as number choice to customers when they use a mobile device for the first time.
Not only is this more convenient for the customer, it also gives them a much wider choice of numbers and the ability to search for vanity numbers that are memorable or have special meaning.
In networks that are already offering number selection using DSA, we are seeing take-up ahead of our expectations, driving revenue, with the potential to increase loyalty” adds Cochran.
“The time of first use also presents an ideal opportunity to offer additional, value-added services to new customers,” he continues. “The same on-device dialogue that supports number choice can also be used to offer device-specific price plans or location-based promotions, further increasing the incremental revenue opportunity.”
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About Evolving Systems®
Evolving Systems, Inc. (NASDAQ-EVOL) is a provider of software and services to more than 70 network operators in over 40 countries worldwide. Its portfolio includes market-leading products for Service Activation, Service Verification, Dynamic SIM Allocation, Number Portability, Number Inventory and Mediation solutions. Founded in 1985, the Company has headquarters in Englewood, Colorado, with offices in the United Kingdom, Germany, India and Malaysia. Further information is available on the web at www.evolving.com.
CAUTIONARY STATEMENT
This news release contains “forward-looking statements” within the meaning of the United States’ Private Securities Litigation Reform Act of 1995, based on current expectations, estimates and projections that are subject to risk. Specifically, Evolving Systems’ statements about the impact of the information described in this press release and the ability of Evolving Systems’ solutions to handle future needs of its customers, are forward-looking statements. Readers should not place undue reliance on these forward-looking statements, and Evolving Systems may not undertake to update these forward-looking statements. Actual results could differ materially because of many factors, such as internal budgeting changes of customers, the impact of competition and the general state of the telecommunications industry. For a more extensive discussion of Evolving Systems’ business, please refer to the Company’s Form 10-K filed with the U.S. SEC on March 8, 2010, as well as subsequently filed Forms 10-Q, 8-K and press releases and the Company’s website at www.evolving.com.