What Type of Mobile Data Plan Benefits Both User and Provider? Allot Looks at Value-Based Models

Allot Communications, a supplier of service optimization and revenue generation solutions for broadband service providers worldwide, released recently that its inaugural MobileTrends Charging Report.

The report shows that 35% of operators are now implementing "value-based charging strategies" such as bill-shock prevention and social networking plans that make applications such as Facebook and Twitter zero-rated, or "free" data. And as for unlimited data?

The research exposes the trend that operators are moving away from unlimited data plans towards volume-based models, aimed at curbing usage, deferring investments, and increasing ARPU.

"This is a crucial time for mobile operators to adopt new charging modes that allow subscribers to maximize the value they get out of their data plan," said Monica Paolini, PhD, Founder and President of Senza Fili Consulting. "The Allot MobileTrends Charging report shows that many operators have already started shaping win-win usage models that do just that, while also optimizing the utilization of network resources."

According to the Allot MobileTrends Charging Report, Only 13.5% of operators are currently offering truly unlimited plans and 48% of operators are currently curbing data overage. Interestingly, just 15% of operators charge for tethering, mainly in North America.

"Our MobileTrends Charging Report reaffirms the trend towards Value-based Charging we see in the market, which is evident from the use-cases being rolled out by our customers," said Andrei Elefant, Allot's Vice President of Marketing. "The first-movers are already reaping the financial rewards from this transition."