Improve The Business Model For Managed Service Agreements

Ditech Networks is a strong partner to equipment vendors in the communications industry that are creating managed service agreements with service providers.

The industry’s CAPEX pricing model for managed service agreements, which historically has been $90-130 per subscriber, has left little or no room for margin. As a result, the Managed Service Sector is working hard to establish a viable model. Ditech offers a solution to this problem that’s already been deployed successfully in networks around the world.

Ditech’s products allow service providers to make extensive use of speech compression to increase call capacity on the network. The increased use of low bit-rate codecs is a well-known strategy to cost-effectively serve a growing subscriber base, but it can cause degradation in voice quality, leading to a surge in customer complaints and churn, Ditech's solution eliminates this problem, and allows service providers to increase the use of lower bit-rate codecs up to 90 percent while maintaining, or actually improving, voice quality.

Ditech also delivers the technology necessary to accurately measure and score voice quality, in real time, on both ends of the call. Equipment vendors now can offer viable, industry-standard Key Performance Indicators that can play on role in managed service agreements.

The safe use of lower bit-rate codecs throughout the network has the potential to reduce the CAPEX per-subscriber cost more than 20 percent, in addition to a total OPEX reduction of more than 20 percent.

This strategy helps preserve the margin necessary to serve this market, while delivering to service providers a network that is fully capable of supporting the rapid and profitable growth of services.