The concept of Dynamic Tariffing™ has been proven to bring significant benefits to mobile operators on a number of key business line items including the following
- Reducing churn
- Increasing the size of the addressable market
- Increasing customer growth and market share
- Improving competitiveness with respect to other market offerings
- Reducing Opex and Capex
- Freeing up network capacity
- Improving network utilization
- Improving network quality
- Improving operator "brand value"
DTS offers the operator the opportunity to run their business at an entirely new level of efficiency,thus allowing them a strategic advantage in the face of new disruptive technologies and tough market environment.
DTS also offers operators in developing countries the real opportunity to attract low income customers at very affordable prices without cannibalizing revenue from their existing high income customers. The secret to achieving all the above benefits is in the manner in which discounts are offered.
DTS currently runs seamlessly in a number of multi-vendor networks. The functionality of DTS has rapidly developed since the first commercial implementation in February 2007. Digitata’s DTS is currently in its third release of software.
The DTE (Dynamic Tariffing Engine) is the node which computes the required discounts on an hourly basis for each unique cell in the network. As can be imagined, there is a risk that excessive discounts could quickly lead to a loss of revenue, while too little discounting may give results no different from what is being achieved at present.
It is the function of the DTE to determine balance between these extremes; consequently a good algorithm makes the world of difference. Digitata's DTE is operating commercially in several networks at present, with an active Dynamic Tariffing customer base of tens of millions.
In these networks a very impressive customer penetration of between 50% and 90% has been achieved by DTS. This experience in a variety of markets has provided valuable insight into how customers respond to the DTS concept and how the discounts should be computed.
DTE 1.0 has been designed to operate seamlessly with that of a global telcom vendors solution. The functionality of DTE is rapidly developing as new insights into dynamic tariffing are discovered and features are added.