Telefónica is one of the world’s largest operator groups, with operations in more than 20 countries serving more than 300 million fixed and mobile users under the Movistar, Vivo, and O2 brands.

The Challenge

Companies the size of Telefónica often face challenges of scale.

Telefónica is a single entity that operates several brands across many countries; operations at this scale encounter unique challenges, including:

  • How to monitor network and subscriber usage trends across vast geographies? Understanding usage trends is a vital piece of spotting market opportunities and architecting tomorrow’s networks.
  • How to deliver services that will be popular across an entire region? In Telefónica’s case, these services needed to take the form of prepaid plans that had obvious value for users with relatively low disposable income.

The Solution

Telefonica's Tiered Plan

To monitor network and subscriber usage trends, Telefónica relies on Sandvine’s Network Demographics reporting interface. Taking advantage of scheduled reports and the product’s powerful customization options, Telefónica uses Network Demographics as the basis of a centralized reporting process in which the distributed operations provide consistent, comparable reports to their corporate parent for centralized examination and analysis.

To get the most out of these reports, Telefónica was an early adopter and power-user of our unique measurement capabilities, which allowed detailed examination not possible with other deep packet inspection (DPI) systems.

Using the intelligence provide by Network Demographics, Telefónica identified applications that were popular among the prepaid user base. Next, they packaged these applications into tiers to provide unlimited usage for a graduated prepaid amount.

These prepaid bundles debuted in Colombia, and became arguably the world’s most famous example of application-based pricing, winning numerous industry awards.

Due to their market success, they were subsequently rolled out across the region, giving Telefónica a valuable first-mover competitive advantage as millions of people connected to the Internet for the first time.

Success Story: Telefonica's World Famous Application Tiers

In 2009, Telefónica had a challenge: how could they grow revenue in the low-ARPU markets throughout Latin America? While many subscribers had capable phones, most were scared to use data.

In response, Telefónica used the Sandvine platform to introduce fixed-price application-based tiers. The plans took only a few weeks to implement, and have been a staple of the Movistar brand in many markets ever since.

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Latin America and Europe
Access Technologies
DSL, 2G, 3G, LTE
Prepaid and postpaid services across mobile (2G, 3G, 4G) and fixed (mainly DSL) access technologies.

"Working with Sandvine since 2008 has brought us closer to understanding and acting on the needs of our customers, while improving revenue opportunities and the cost-effectiveness of our network."

Vicente San Miguel
Telefónica Corporate

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UPDATED : 2017-07-11 09:16:06