Carriers who offer value-added security services are expected to share a global revenue stream of $2B by 2023.
Avast has teamed up with digital technology experts Juniper Research to explore the overall market opportunity for mobile network operators (MNOs) to better protect the digital family.
The internet brings many great opportunities for children to learn and explore their creativity. With this, however, comes increased risk that they are subject to areas of the internet parents want to protect them from. As more children begin using tablets and cell phones – and more bad actors develop new ways to hack into networks – parents everywhere are turning to MNOs for help. The telecommunications industry is on the crest of a new age: Customers increasingly want insights into their families’ online behavior as well as protection from online threats. Fortunately, these solutions are now possible via easy-to-implement and manage parental solutions.
Carriers are facing decreased revenue as competition crowds the marketplace. Competitive pricing, roaming regulation and the introduction of over-the-top (OTT) services have driven the commoditization of call/text/data bundles, where operators previously enjoyed large margins and have put the squeeze on MNOs. Additionally, as 4G gives way to 5G, carriers need to invest in new hardware, new software, new operating models, and new learnings.
The value-added solution
To engender trust and foster brand loyalty today, carriers must emerge as authorities on security and online safety. Value-added services in these areas will bolster average revenue per user (ARPU) and build customer retention. By offering features like parental controls, an MNO comes across as a critically important partner to the customer rather than simply a network service. A shift in perception from “this company provides my family’s mobile service” to “this company cares about my family’s digital safety” does even more than increase account value — it makes the service essential.
A UK government study in 2017 reported that 83% of UK children age 12-15 use a smartphone. In 2018, the Pew Research Center reported that 94% of US children aged 13-14 use a smartphone. Juniper Research estimated that in 2018, one or more children owned connected devices in 27% of households worldwide — a figure that is expected to rise to 40% by 2023, bringing the number of “connected children” from under 300 million to about 450 million, a 50% increase. The timing has never been more favorable for MNOs to seize the opportunity to forge strong relationships with customers and their families.
The global market opportunity for carriers
Juniper Research forecasts that carrier revenue from digital safety for families will continue to rise over the next few years. Because many US carriers (and customers) already embrace the “family plan” model, we expect a strong increase in revenue from US customers, especially as more homes add more connected devices. We believe US households will increase spending on digital safety at an annual rate of 24%, rising from $7.8M in 2018 to $19.1M by 2023.
We also expect consistent growth in all other territories. Asia market revenues are forecast to reach more than $500M by 2023, growing at an annual rate of 12%. We expect an annual growth rate of 67% in Western Europe, 145% in Central and Eastern Europe, and 153% in Latin America.
The opportunity for carriers here is leveraged not only by supply and demand, but also social responsibility and brand reputation. As carriers upsell home protection solutions to cover every connected device in the household, they achieve a more holistic protection of their customers, deepening the relationship with more trust.
The Avast approach
Partnering with MNOs to deliver the security features their customers demand is a natural progression for Avast. With 30+ years of experience in cybersecurity and hundreds of millions of users protected by our network, we confront new online threats every day and our solutions are fueled by the latest insights. Our parental controls are powered by this worldwide cybersecurity engine.
With Avast Family Protection, our parental controls product, parents gain insights into their children’s locations and online activities through a suite of parental controls in addition to being able to block individual apps or websites. We developed this product to give parents peace of mind, knowing their loved ones are safe wherever they go.
Our successful partnerships are built upon four key Avast strengths:
Cloud-based machine learning: We receive a constant stream of data from hundreds of millions of endpoints around the world. We use that data to protect our users with the largest up-to-date threat detection network in the world.
Massive cybersecurity infrastructure: We’ve built a globally robust network that processes data rapidly, with minimum latency, allowing our users to receive quicker updates and alerts.
Deep experience with leading network partners: For more than 13 years, Avast has been developing customized solutions for major tier-1 global service providers.
Robust marketing abilities: With expertise in both paid and unpaid marketing, we reach so many users that our products are installed more than 100 million times annually. We partner with carriers to use our expertise and their local knowledge to drive awareness and retention.
Learn more about the benefits Avast brings to MNOs, and unlock your network’s full potential. The number of customers who want value-added security products will continue to grow, but now you have the power to deliver. For more information, download our whitepaper.