If you pre-provision a SIM, it may never be used and you have wasted time and resources. But if you don't pre-provision it won't work when the user tries to activate it. So how can operators square the circle?
As operators roll out new solutions and services, the ability to launch compelling and timely new marketing initiatives is likely to prove a key differen-tiator. However, most operators today have structural or process issues that make these initiatives difficult to achieve.
These initiatives fall into two broad categories: those that support new distribution models and those that promote new devices, services or applications. The former approach often seeks to use customers as an extension of the company's own marketing team or sales force.
Popular techniques employed by network operators include giving away multiple prepaid SIM cards to prospects in the hope they will keep one and pass the remainder on to friends, and incentivising users by offering them free credit every time someone they have introduced to the service tops up their account. Operators are also increasingly making SIM-only offers either online or in magazines and offering free cards to users that sign up to specific product packages.
Mobile broadband is a prime example of a new service that is growing rapidly – with laptops or netbooks as the devices of choice, using 3G technology either embedded in the device itself or in a USB dongle. Another service, likely to be driven by regulation in the future, is exemplified by eCall in Europe, which puts mobile technology into motor vehicles so that in the event of an accident the emergency services can be alerted automatically and provided with location details.
The Scale of the Challenge
In a highly competitive marketplace, the successful rollout of these kinds of initiatives is critical as operators battle to achieve an edge over their rivals.
Unfortunately, their ability to deliver these programmes in a timely and cost-effective manner is often limited. The key issue is that all of these schemes necessitate increased distribution of SIM cards. Current processes for distributing prepaid SIMs involve pre-provisioning of critical resources. Not only do phone numbers (MSISDNs) have to be allocated to each SIM but multiple entries also have to be made in network databases.
The databases involved have finite capacity. Initiatives therefore have a significant cost in terms of capacity used. Equally, they may require investment in additional systems to accommodate entries for SIM cards that, although distributed to potential customers, are never used (the proportion of give-away cards subsequently topped up is typically small).
There are also issues with the numbers themselves. In many markets, MSISDNs are either in short supply, or at the very least closely regulated.
Allocation of new MSISDN ranges may be prohibitively expensive and may also require evidence that existing allocations are actively in use. Coupled with this, difficulty or delays in obtaining MSISDN ranges can hold-up or even prevent SIM orders needed to support marketing campaigns from taking place.
Scoping out a New Approach
So what is the solution to this apparently intractable problem? What operators need is to be able to significantly increase the volumes of SIM cards distributed, without having to allocate these critical resources in advance.
The challenge they face is that a SIM that is not pre-provisioned cannot, with current technology, connect to the network and support calls or other services. A new Dynamic SIM Allocation (DSA) approach resolves this issue by enabling the allocation of both network database entries and MSISDN to be deferred to the point at which a new SIM card is first used.
The key to DSA lies in innovative new technology, capable of supporting interaction between the new SIM card and the systems provisioning the network resources, even though the SIM card itself remains unable to connect to the network in the conventional sense.
With the help of DSA, the operator can even determine the type of device in use, or interact directly with the end-user via that device, to ensure that the appropriate set of services, options and personalisations are applied.
Proven Technology
Six operators have recognised the value of this approach in supporting their operations and marketing initiatives and are deploying the solution. Three of these, including one in Europe, are already in live production.
With the emergence of DSA and its ability to defer the allocation of network resources to the point of first use, operators can now deliver the cost-effective and timely marketing campaigns that they need in order to stay ahead of the competition.
About the author of this article:
Bill Chard is senior director, product management and development, Evolving Systems