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SMB Market Essential for Mobile Operators’ Future Revenues

TORONTO - February 20th 2013 - Sigma Systems, the authority in provisioning converged network solutions, believes that mobile operators must adjust their stance towards the increasing number of over the top (OTT) services and embrace mutually beneficial partnership models. Such models will enable the monetisation of new services, allowing service providers to open new revenue channels with the lucrative small and medium sized business (SMB) sector.

Global voice and messaging revenues are declining. In fact, estimates suggest that they will fall below the 60 per cent threshold in 2013 [1]. Meanwhile the OTT application and services market continues to grow and is expected to be worth $166.5 billion in 2016 [2].

However, SMB customers are becoming an increasingly lucrative market opportunity for mobile operators as they turn to software as a service (SaaS) applications. These applications enable easy access to online backup, customer relationship management (CRM), office productivity and unified communication software, especially for mobile and flexible workforces. The Federation of Small Businesses estimates that the UK's SMB sector will spend £2.1bn on business application software and SaaS by 2015 [3].

Further, machine to machine communications (M2M) can generate significant value. Mobile operators represent an enablement platform where they can add value for SMBs to offer applications and services such as in-building security, transport & logistics, and goods tracking. The M2M market is estimated to be worth more than $65 billion by 2015 [4].

Operators cannot afford to fight the OTT threat by maintaining a walled-garden approach to content and services for subscribers. OTT players are simply much better equipped to bring new services to market in a fraction of the time of most operators (certainly, the large and somewhat less nimble ones).

Successful service brokerage can help operators explore new revenue opportunities by enabling mobile operators to extend value-added SaaS services to SMB customers in a scalable, economic manner while shortening overall time to deployment. In this way operators can rapidly and efficiently realise new revenue opportunities from SaaS applications as well as create mutually beneficial business models for all parties involved.

Rick Mallon, Vice President Marketing & Product Management at Sigma Systems comments, "With billions of dollars of revenue at stake it is clear that operators must change their approach to OTT players. While there is great opportunity in the SMB market, operators have to adjust their relationship with them to exploit the tidal wave of new, independent apps, services and content providers that SMBs are demanding. Sigma Systems is focused on helping operators tap into this innovation by expanding service offerings and packages, and accelerating their time-to-revenue from several months to just a few weeks."

Sigma Systems' zero touch provisioning helps operators enable and manage SaaS services and applications for communication service providers. Its Cloud Service Broker is an integrated SaaS service fulfilment solution that removes operational silos and reduces costs, and overall CapEx as well as OpEx, by managing all telecommunications business services, from VoIP to cloud-based SaaS applications.

Sigma Systems will be at Mobile World Congress from 25th to 28th February in Barcelona. To arrange a press or analyst briefing in Barcelona please contact [email protected].

[1] Chetan Sharma Consulting
[2] mobileSQUARED Over-The-Top (OTT) Services: How Operators can overcome the Fragmentation of Communication
[3] Pierre Audoin Consultants
[4] Informa's World Telecoms Financial Benchmarks database

-ends-

About Sigma Systems
Sigma Systems is the proven global leader in delivering advanced IP service fulfilment solutions. Sigma Systems' powerful solutions enable the world's Next-Generation Operators (NGOs) to Deliver a Rich Consumer Experience through communications and entertainment services—over any access technology to any device. The company's award-winning solutions include order management, provisioning and activation, and active mediation of residential and business VoIP, broadband, video, and triple-play and quad-play services. NGOs around the globe — including Bell Aliant, Cox, Rogers, TELUS, YouSee, NETServicos, Technology Networks, iTSCOM and ZON Multimedia — trust Sigma Systems for service transformation and innovative solutions with market-leading expertise for the delivery of today's—and tomorrow's—new services. For more information about Sigma Systems, visit http://www.sigma-systems.com and follow the company on Twitter at http://twitter.com/sigmasystems.

Editorial contacts
CCgroup, for Sigma Systems
Liv Nixon / Sarah Wilson
Email: [email protected]
Tel: +44 207 5357 220 / +44 207 535 7217

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