As a proliferation of mobile Internet-enabled devices hit the consumer market, end-users are looking increasingly to their mobile operators to provide innovative multimedia services.
Adrian Patterson, VP EMEA, Sonus Networks 

In Western Europe alone, the number of mobile-broadband users is expected to grow by 50% to 27 million this year, according to IDC. Worldwide, there are thought to be around 100 million mobile-broadband users already. The rapid take-up of mobile broadband has left mobile network operators concerned that they will become mere dumb bit-pipes connecting to the internet. In order to avoid this, operators may look to offer services that appeal to the consumer base, to reduce churn as well as enable them to remain competitive in a crowded marketplace. The launch of the iPhone has driven an appetite for an enhanced mobile internet experience. A seamless communication experience with converged voice, video, mobileTV and Web 2.0 applications such as Twitter and Facebook is expected to become the norm and will find a place in the enterprise environment, as well as the consumer space. This evolution has already begun, and the challenge for operators will be to develop and offer this multimedia experience in this time of global economic turbulence. Delaying development may lead to loss of position to more innovative competitors. Therefore, the primary concern for the mobile operators is how to do this while addressing security, quality and profitability drivers, rather than whether to make these investments in the first place.

These new services can be effectively achieved today through the all-IP network infrastructures. For many existing mobile operators the migration is evolutionary, as the interconnection of legacy TDM equipment will also need to be accommodated. The GSM Association’s IP eXchange (IPX) model will alter the way that mobile operators connect with the world around them, providing an environment for IP Interconnect that brings mobile operators, fixed network operators, application service providers and enterprises together for high-quality, low-cost peering. Today, most GSM voice and SMS traffic on mobile networks are interconnected via circuit-based switches. As mobile operators move to IP technology, IP interconnect becomes increasingly cost effective and efficient. The IP peering model lowers operating and capital expenses by replacing costly TDM switches, improving voice quality by eliminating the need to translate traffic from legacy to IP and supports a converged network model that brings voice, video and data together.

As more and more content is being passed over the mobile network and seamless communication is moving into the enterprise, protecting the integrity of that content becomes an even greater priority. The type of security threats have changed dramatically as telecoms networks have developed. Whereas previously touch-tone ‘phreaking’ (the use of artificial dial-tones to route calls for little or no charge) and virus attacks by amateur hackers were a nuisance, just as in the broader networking world, targeted attacks by fraudsters, identity thieves and other organised criminals are more of a threat now. To protect valuable customer data, the operator must build security into the network design, including securing the boundaries, embedding intelligence to detect anomalous behaviour, and encouraging customers to develop their own security infrastructures and policy.

In the future, multimedia session awareness will be as important as session delivery. Mobile operators will need to be able to see what types of media traffic are being sent where in the network, and to whom, so that traffic can be delivered in accordance with service level and pricing agreements. In order to get these multimedia services to end-users, operators will require simple, secure peering with a wide range of partners that support strong Quality of Service controls and tiered revenue systems. The IPX model promises to deliver that peering environment using an open, standards-based architecture that delivers true, multilateral peering on a global scale.

If the network capacity is insufficient, Quality of Service guarantees become more important, particularly for real-time streaming multimedia applications such as Voice over IP, and in networks where the capacity is a limited resource. The ability to prioritise different applications, users, or data flows, or to guarantee a certain level of performance to a flow of data is costly. To protect margins, operators could opt to charge a premium for the types of services that require it, rather than passing the costs on to all end-users uniformly. However, the recommendations in a report published by the European Union at the end of 2008 would prevent broadband access providers from offering such varied levels of service. Some believe that these restrictions will undermine investments in the expansion and improvement of European broadband access, ultimately resulting in lower quality internet access for most people. Even more significantly, if the minimum Quality of Service proposal in the European report is adopted, it could mean no broadband access for some people as the costs of complying would be passed on to consumers. The report concludes that instead of seeking to establish network neutrality, regulators should focus on breaking down government-created barriers to access, such as limits on competition in the supply both of wired and wireless broadband access.

It is unknown exactly what impact the global financial crisis will have on mobile operators. There is research to suggest that some consumers are delaying their handset upgrades so may not have the opportunity to use these services regularly. At the same time mobile network operators are making a concerted effort to convert more of their consumers on to their mobile broadband packages. In order to retain margins, operators need to assess now, just how they will differentiate and enhance their offerings. This could be as simple as providing services such as any-to-any messaging, where a message sent to multiple recipients will find them in the most convenient way depending on what they are doing. These are uncertain times and mobile network operators will need to balance offering a secure, high quality experience to customers at a sufficient margin level, whilst remaining innovative. There are partners in the ecosystem today that are primed to help operators achieve this and it will not be long before those that make these investments can expect to gain a market leading position. It will be the operators that continue to invest in the lean times that will be able to profit most effectively when the economic climate improves.