5 Proven Ways for Telecom Operators to Increase Consumer Revenue

The global telecom industry is at a turning point. While spending on telecommunications services is projected to reach USD 1.5 trillion by 2025, led by major markets like the United States (USD 342 billion, source: Statista), average revenue per user (ARPU)—a key financial metric for telecom operators—is under growing pressure. According to PwC’s Global Telecom Outlook, ARPU is expected to decline by 2% annually through 2028, across mobile, fixed broadband, and voice services, despite overall revenue growth.

This contradiction underscores a broader challenge. The sector is experiencing explosive data usage, an increase in connected devices, and a growing customer base—yet per-user profitability is eroding. Several factors are at play: a sharp decline in voice and SMS revenues, market saturation, pricing wars, and increasing competition from over-the-top (OTT) platforms offering free or low-cost alternatives to traditional telecom services. At the same time, economic headwinds such as inflation and uncertainty are limiting consumers’ willingness to spend more.

Even as global ARPU in telecom services is projected to grow modestly—by 6.25% to USD 197.23 by 2028 (Statista)—the industry must act decisively to sustain this growth. Operators need to look beyond traditional models and adopt customer-first strategies, digital innovation, and smarter monetization techniques. More than 70% of consumers now expect highly personalized interactions and seamless experiences, making it essential for telcos to meet these expectations while safeguarding their margins.

One of the most effective ways telecom operators are addressing these ARPU challenges is by using digital advertising and engagement platforms to diversify revenue streams and deepen customer value. Tools like moLotus mobile video advertising and interaction platform, for example, enable telcos to deliver hyper-personalized, mobile video campaigns directly to subscribers without requiring mobile apps or data plans—driving upselling, cross-selling, and loyalty while keeping costs low.

Similarly, Google Ads and Meta Ads (Facebook and Instagram) allow telcos to monetize their customer reach through targeted ad placements, delivering relevant offers that increase engagement and conversion. WhatsApp Business supports conversational commerce and real-time support, enhancing customer experience and service adoption. Meanwhile, TikTok helps telcos connect with younger audiences through creative short-form content, driving brand affinity and promotional campaign performance. Together, these platforms empower telcos to go beyond traditional service models, engage subscribers more meaningfully, and ultimately boost ARPU by delivering greater value at scale.

To compete effectively and secure long-term growth, telecom operators must rethink how they generate consumer revenue. This article outlines five proven approaches to help telcos move beyond connectivity and create meaningful, profitable relationships with their customers. These strategies offer telecom leaders a practical path to uplifting consumer revenue in an increasingly digital and competitive environment.

1. Turning Customer Data into Personalized Experiences

As consumer expectations rise and competition intensifies, telecom operators can no longer afford generic engagement. The key to unlocking higher consumer revenue lies in how well telcos understand and respond to the individual needs of their customers. This is where data-driven communication becomes a powerful differentiator. By tapping into rich subscriber data—covering usage patterns, location, demographics, and preferences—operators can craft highly personalized and relevant messages that drive action.

Tools like moLotus enable telecom operators to transform raw data into impactful customer experiences. With moLotus, operators can segment their customer base with precision and deliver targeted mobile video messages tailored to each segment’s behavior, language, or life stage. Whether it’s a plan upgrade offer for a heavy data user, a handset bundle for a loyal subscriber, or a festive greeting with exclusive rewards, these hyper-personalized campaigns build deeper relationships and higher loyalty.

Research from Deloitte suggests that personalized customer engagement can boost revenue by as much as 40%. moLotus supports this by offering telcos multiple customer response mechanisms—such as SMS, USSD, callback, and web links—that make customer interactions effortless and actionable. Unlike traditional advertising, these campaigns are delivered directly to the mobile inbox, ensuring high brand visibility.

Furthermore, personalization helps reduce churn, improve customer satisfaction, and increase ARPU. By delivering the right offer to the right customer at the right time, telecom operators can improve conversion rates and extract more value from their existing subscriber base.

In an era where digital experiences define brand loyalty, data-driven, personalized communication isn’t just a best practice—it’s a competitive necessity. Platforms like moLotus empower telcos to move from mass messaging to meaningful, revenue-generating conversations at scale.

2. Smarter Upselling and Cross-Selling

Increasing revenue from existing customers is often more efficient—and more profitable—than acquiring new ones. For telecom operators navigating a highly competitive and margin-conscious market, strategic upselling and cross-selling have become essential levers to boost Average Revenue Per User without significantly increasing operational costs.

Upselling allows telcos to offer customers premium plans, enhanced data packages, or higher-speed broadband tailored to their current usage patterns. For instance, a user frequently exceeding their data limit can be prompted—at just the right moment—to upgrade to a higher-tier plan with added value. Cross-selling complements this by bundling services such as entertainment subscriptions, cloud storage, or device insurance into existing plans, enriching the customer experience while adding incremental revenue.

To execute these strategies effectively, telecoms must rely on platforms that combine data intelligence with campaign automation. moLotus enables telcos to launch high-impact, mobile video campaigns that are personalized at scale. Operators can trace customer segments with cross-sell or upsell potential and deliver personalized recommendations. The platform’s interaction mechanisms, including SMS, USSD, mgam, and web links, make it simple for customers to engage, take action, and upgrade.

Meta Ads and Google Ads, on the other hand, offer retargeting and superior content creation capabilities. For example, telcos can show personalized device upgrade ads on Facebook to users who recently explored handset options on the provider’s website, or use Google’s Smart Campaigns to automatically provide complementary offerings based on search and behavioral data.

Together, these platforms enable a data-driven, automated approach to increasing customer value. By utilizing insights to anticipate customer needs and deliver relevant, timely offers, telecom players can strengthen customer relationships, enhance retention, and substantially increase revenue per user. Smarter upselling and cross-selling won’t just be a growth tactic—they’ll be a competitive imperative.

3. Redefining Customer Journeys Through Smart Automation and Transformation

In today’s telecom environment, where customer expectations are higher than ever, delivering a frictionless and consistent experience has become a competitive necessity. Operators are realizing that automation and digital transformation are no longer optional—they are essential tools to drive revenue growth by improving how customers interact with their services.

To keep pace with shifting consumer behavior, telecom companies are streamlining customer journeys through intuitive digital touchpoints. Self-service portals, automated customer onboarding, and real-time support are becoming the norm, empowering users to manage their services with ease while reducing pressure on call centers. This shift not only improves user satisfaction but also directly contributes to reduced churn and improved revenue per user.

Tools like moLotus help telecom operators lead this transformation. By automating customer processes such as onboarding, renewals, service updates, and loyalty campaigns, moLotus enables telcos to deliver timely, tailored communication at scale. For instance, a new subscriber can automatically receive a welcome video, plan details, and upgrade offers.

Other digital marketing platforms, such as HubSpot and Marketo, support broader automation strategies, from email sequences to CRM integration. However, moLotus offers telcos the unique ability to automate mobile video advertising and real-time interactions, resulting in operational cost savings of up to 30% while boosting customer engagement.

In a market increasingly influenced by younger, digitally native users, automation also plays a crucial role in meeting expectations for speed and personalisation. Features like instant callbacks, mobile surveys, and instructional videos enrich the customer journey, helping operators build long-term loyalty and extract more value from each user.

As telcos continue to invest in scalable, efficient solutions, the ability to automate key interactions—without compromising personalization—will be a defining factor in sustainable revenue growth. The telecom operators that successfully digitize and automate the customer experience will be best positioned to thrive in an increasingly competitive landscape.

4. Expanding Offerings to Drive Revenue Diversification

As telecom markets mature and traditional revenue streams plateau, diversification is emerging as a key strategy for telecom operators aiming to increase ARPU and reduce reliance on core connectivity services. In 2025, forward-thinking operators are broadening their portfolios to include value-added services, targeted advertising solutions, and tailored offerings for specific industry segments.

By expanding into areas such as mobile advertising, digital content, and enterprise solutions, telcos can meet evolving customer demands while unlocking new revenue streams. For example, operators offering mobile campaign solutions to sectors like retail, healthcare, or e-commerce are seeing promising results. These services not only generate incremental revenue but also strengthen customer stickiness by addressing business-specific needs.

Technology platforms like moLotus play a central role in enabling this diversification and market expansion. Designed for simplicity, moLotus allows telcos to deliver interactive, globally scalable mobile video campaigns. Operators can roll out personalized promotions, new service announcements, or loyalty programs across large subscriber bases in real time, significantly improving engagement and monetization. The platform’s versatility makes it well-suited for launching new services and supporting go-to-market strategies in both urban and underserved areas.

Other digital platforms, such as Meta Ads and Google Ads, also support telcos in diversification efforts by providing tools for cross-industry targeting, location-based campaigns, and customer segmentation. Meanwhile, WhatsApp Business offers telecom brands a direct, conversational interface for customer engagement, upselling, and service bundling.

In a competitive and margin-sensitive landscape, diversifying the marketing mix is more than a growth strategy—it’s a necessity. Telecom operators that embrace technology to scale new offerings quickly and efficiently will be best positioned to increase consumer revenue, enhance ARPU, and ensure long-term sustainability.

5. Unlocking Growth Through Strategic Partnerships

As the telecom industry faces increasing pressure to grow consumer revenue, strategic collaborations are proving instrumental in unlocking new value. By partnering with ad tech platforms, telecom operators can broaden their service offerings, enhance customer engagement, and generate higher Average Revenue Per User.

Technology partnerships are helping telcos integrate advanced tools that streamline marketing, personalize customer interactions, and introduce new monetization models. For instance, the collaboration between Telkomsel and moLotus illustrates how telcos can embrace mobile video advertising to deliver targeted, high-margin campaigns at scale. This partnership enables Telkomsel to reach millions of Indonesian subscribers, boosting both engagement and revenue. Other global telecom players, including Vodafone, Airtel, Indosat Ooredoo Hutchison, and DigiCelcom, are also embracing ad tech alliances to refine their consumer strategies.

Platforms like Google Ads and Meta Ads provide telcos with precise targeting capabilities and access to powerful ad ecosystems, enabling them to offer co-branded campaigns or manage direct-to-subscriber promotions for external advertisers. Meanwhile, WhatsApp Business has become a go-to tool for conversational commerce, customer support, and real-time offer delivery.

Bundling remains another powerful outcome of strategic partnerships. Telecom operators are increasingly working with content providers to offer packages that include streaming services, gaming access, or premium apps, creating new incentives for customers to upgrade their plans and remain loyal. These value-added bundles not only enrich the user experience but also significantly boost ARPU.

In 2025 telcos that actively pursue strategic alliances—especially those centered on innovation and customer value—will be best positioned to thrive. By using external expertise and technology, telecom operators can remain agile, relevant, and profitable in a rapidly evolving digital landscape.

Conclusion

With ARPU under pressure, telecom leaders must act fast to drive revenue growth. Strategies like data-driven personalization, automation, service diversification, and mobile advertising—enabled by platforms such as moLotus, Google Ads, and Meta Ads—offer practical, high-impact solutions.

This is the time to rethink revenue models, unlock more value for consumers, and form strategic alliances. Telcos acting today will reverse ARPU decline and boost tomorrow’s growth.

Evaluate your approach. Embrace Innovation and Transformation.