Evolved Intelligence, the network value added services company, has launched a dynamic tariffing system for pre-pay mobile users called Intelligent Pricing. The system calculates the price elasticity for different groups of mobile users at different times through the day. This information is then used in conjunction with capacity and demand availability data, and a number of other factors, to generate a dynamic tariff. This, dynamically changing, tariff is notified to handsets by cell broadcast. The result, claims the company, has been to boost ARPU by between 5% and 14% in the networks that have rolled out the system.
Says Robin Burton, Head of Marketing at Evolved Intelligence: “The Intelligent Pricing system observes subscribers responses to changing tariffs. It then calculates the price point at which overall revenue is maximised. This method of micro-targeting pricing to specific cells and specific time segments maximises ARPU increase. In systems that have been implemented so far, ARPU has actually improved by between 5% and 14%.”
The company says that the observed ARPU increases are driven by a number of factors in addition to the optimisation of the tariff on the price elasticity curve.
Robin Burton added: “The application of intelligent pricing tends to reduce SIM swapping. Because the tariff changes so frequently, it is difficult for subscribers to tell whether they would be better off using another network. This means that business is won from competing networks. Also, because Intelligent Pricing boosts the number of calls and texts from subscribers in the scheme, it also increases the number of return calls and texts from subscribers outside of the scheme. And because the tariffs are also based on capacity availability, Intelligent Pricing also shapes traffic, reducing demand at peak times. This reduces the traffic pressure on the network, thereby improving quality of experience and delaying the need for expenditure on improvements.”
Intelligent Pricing connects seamlessly without needing any changes to pre-pay platforms. This means that the system is ideal for multi prepay vendor environments. It also reduces the cost and complexity of implementation.
About Evolved Intelligence
Evolved Intelligence is based in Bristol, UK and was formed in 2007. The Evolved Intelligence team has a long experience in delivering IN services. Key members of the team worked for the Bristol based company, Aethos, widely regarded as one of the principal pioneers of pre-pay mobile communications. The Evolved Intelligence team is also a pioneer in the use of the JAIN platform and of Agile Development methodology.
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