A Tier 1 multi-service Operator wanted to implement a long-term, company-wide, optimization strategy to cover mobile (3G/4G) and fixed line (both domestic and international).
By utilizing TEOCO’s cost management, routing and analytics solutions, we provide a full cost analysis of every aspect of the operator’s environment: on-net traffic, off-net traffic, in bound and out bound roaming, domestic and International minutes, long distance traffic, international termination, routing, for voice, messaging, data and third party content. TEOCO performs a comprehensive, end-to-end analysis of each of these areas in order to identify and understand hidden costs, especially related to roaming and optimizing routing strategies with partners. Inter-carrier costs constitute a significant percentage of an operator’s overall costs, so this is a significant area of focus for most service providers.
TEOCO collects, correlates and analyzes every transaction on the network. Summarized data and sampling strategies that some operators use today simply don’t work. They hide the most problematic cases by overlooking the outliers and the ‘needle in the haystack’ issues that can equate to tens of millions of dollars in losses.
With costing data on each and every route and at the granularity TEOCO make possible, this leading U.S. Operator has become a savvy rate negotiator- giving them a significant upper hand when setting roaming and termination costs with their wholesale partners. The operator is able to fully understand costs before partnering- and bid out the rates they need to meet to potential partners. This is not the usual method of negotiation for even the largest operators, but TEOCO has given them the power of knowledge. And although this operator has a large nationwide network, sometimes it is cheaper to NOT use your own facilities, and instead route traffic onto a partner network. Because TEOCO understands all costs, this allows the operator to optimize their traffic in every situation. In addition, TEOCO provides information on routing that is optimized not just on cost, but on quality – helping to not only ensure costs are being optimized, but the customer experience is being optimized as well.
In addition to optimizing rates, the operator is also able to determine which subscribers are generating the greatest percentage of roaming costs. In fact, it was found that the top one percent of roaming subscribers were generating over 64 percent of the costs. TEOCO’s ability to look at costs based on multiple dimensions such as location, subscriber and handset, allows the operator to uncover problems when they arise, identify profit and loss on a per subscriber basis, and to take appropriate action.
Over the past 5 years, TEOCO’s solution has saved the Operator over $500M USD. This is more than a 25% reduction in their overall network costs. These amazing results are due to the fact that TEOCO has been able to collect and analyze data from across the entire organization. This end to end analysis has led to amazing findings, savings millions in costs and optimizing its business across the board. Today, TEOCO’s solutions continue to play a major part in the fiscal health of this operator.