Eighty percent of the world's population is now covered by GSM. This has prompted operators and vendors to focus less on network expansion, and more on better and more-efficient business solutions.

Ericsson's new Expander spans revenue management, services, and network growth solutions - all in one package. It gives operators a holistic program that will help them increase revenue in markets where many people earn USD 2 or less a day.

Get more from your network

In high-growth markets where penetration is low, operators look for ways to address low-income subscribers successfully, notes Linda Ekener Mägi, an Ericsson market analyst.

"In that segment, people may need to pay in smaller nominations with the help of micro top-up cards or various pre-paid programs," Mägi says. "That's where our Revenue Management solution comes in."

The solution includes many mechanisms for real-time charging, billing, activation and other spending and credit controls that operators in such markets need, she says.

Indian operators Airtel, Reliance and Tata Indicom are among operators that successfully deployed micro top-up programs for both mobile and fixed-line customers.

In India, recharge amounts have crept as low as USD 0.15, the amount needed to speak on the phone for just a few minutes.

Empowering services

Another challenge for operators is increasing the top line.

Services such as Ericsson's Voice SMS, which lets subscribers exchange voice messages cheaply and simply, help operators increase traffic. Carriers can also develop airtime credits and transfers - all within the scope of Expander.

International remittances from one mobile phone to another - a service Ericsson's platform supports - is yet another promising area for low-ARPU markets, says Mark Jefford-Baker, business innovation manager at Ericsson Mobility World.

Today, more than 200 million migrant workers send a total of USD 230 billion home each year to 800 million people. Globe Telecom of the Philippines is among a small but growing group of telcos that offer mobile remittances.

The GSM Association and MasterCard recently launched a pilot program to help operators tap deeper into this budding market. According to GSMA estimates, the program could boost total international remittances to more than USD 1 trillion by 2012.

 "For operators, this is a case where less can be much more," Jefford-Baker says. "By lowering transaction costs, they can see a large increase in volume and revenue."

Expand in scale with business success

Within the scope of the new Expander, Ericsson continues to offer solutions for operators who must expand their networks efficiently. Capacity-growth solutions have been added to help customers in low-ARPU markets expand their existing networks.

"In the past, Expander has been very specific, offering only one business solution: network coverage expansion," Mägi says. "Now it includes more than 10 business solutions. Our aim is to have a complete offering for low-ARPU users."