The challenges facing mobile network operators
 
Mobile Network Operators (MNOs) face a wide range of challenges, placing significant pressures on traditional mobile revenues.

INCREASING LEVELS OF COMPETITION 
 
This is an extremely competitive environment, which has also seen the arrival of new Virtual Network Operators, increased regulatory intervention on pricing, falling call rates and high customer acquisition costs. 
 
NEW DEVELOPMENTS IN TECHNOLOGY
 
Through the convergence of technologies and services, the mobile industry is evolving into a ‘total communications’ sector. Mobile communication increasingly covers a wide spectrum of capabilities, including four main technologies: mobile, fixed, broadband, and television services. Factors that were once major issues – such as networks, headline bandwidth, bit rates and price – are no longer the key differentiators. 
 
CHANGES IN CUSTOMER DEMANDS
 
Customer satisfaction levels can have a significant effect on the rates of operator churn. The end-to-end customer experience has become a vital issue for MNOs: ultimately, excellence (in terms of customer service levels) is likely to play a major role in determining each operator’s success or failure.


These changes have resulted in unprecedented pressures on the Average Revenue Per User (ARPU), Average Margin Per User (AMPU) and operational costs.
 
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