Friday, 03 September 2010
Home
| Remaking mobile |
|
|
| Friday, 03 July 2009 | |
|
Adrian Patterson, Sonus Networks EMEA vp, looks at how European mobile operators can meet new regulatory challenges…
On 1st July 2009 wholesale data roaming caps were introduced by the European Union (EU). This, the latest action of the on-going Telecoms Package of regulations, is set to considerably alter the telecoms landscape in In April 2009, the European Parliament voted for legislation that will result in the reduction in price of text messages and data downloads for mobile phone users while travelling in A large proportion of subscribers are set to benefit; for example, from July 2009 Operators will also struggle to retain traditional revenue streams. Mobile VoIP applications such as Skype are becoming mainstream and 3, the mobile operator, announced that it would offer unlimited Skype-to-Skype calls and messages without any extra fees to its customers. Offers of voice clients, in announcements made by Internet companies such as Google, are also set to increase consumer choice in the space and operators will need to respond to head off possible reductions in subscriber numbers. Earlier this year Deutsch Telekom’s refusal to permit VoIP services such as Skype across the T-mobile network prompted the EU to prepare new rules that will prevent European operators from blocking such traffic. At present each European operator can select which Internet traffic it permits through its network. Simultaneously, EC Commissioner for the Information Society and Media Viviane Reding has called for member states to take legal action against operators that seek to block the introduction of innovative services by using their near-monopoly status in major markets. With the threat of Internet-based ‘free’ VoIP services creeping onto mobile devices, operators must adapt to protect their traditional revenue streams if they are to continue to thrive in a crowded market place. The current economic climate has already forced many businesses to identify ways of reducing operating costs. For mobile operators, their core asset could be the first area in which operating costs could be reduced. Upgrading to next generation all-IP networks not only improves efficiency but also increases capacity so that innovative services can be supported. IP network transformation will eventually see the complete migration from legacy TDM networks to a single, service-delivery orientated end-to-end all-IP infrastructure which will enable operators to run their networks more efficiently. For example, calls can be routed at the edge of the network, rather than at the core which is more costly, thereby assisting margin retention. These are just a sample of the savings that will be realised by operators once the migration to all-IP infrastructures is complete, and will be invaluable if their balance sheets are to look healthy despite regulatory changes that are to be introduced. Mobile customers are also increasingly expecting more innovative services from their networks. Ovum recently predicted that mobile broadband revenues will soar over the next five years as the number of global mobile broadband users is expected to climb to two billion by 2014. This is partly driven from a desire by users to be always connected and access social networking sites such as Facebook and other services from their mobile devices. The increased sophistication and penetration of applications has contributed to the desire to access the Internet regardless of location. However, Ovum predicts that the growth in mobile broadband adoption will also result in a significant reduction in carriers' average revenue per user (ARPU) as total revenues are projected to grow at just 44% of the rate of total users. Ovum believes that several factors will be responsible for reduced ARPU for carriers, including less revenue being generated from emerging markets, the possible introduction of prepaid tariffs used to drive broadband adoption, and increased competition for mobile broadband access. In order to sustain revenues and good margins, operators must therefore seek alternatives to simply delivering data. It is anticipated that providing innovative services will meet this need. The types of services that operators may seek to introduce include any-to-any messaging, where the network intuitively delivers messages to the intended recipients in the form that is most convenient for them at that moment in time, whether it is an SMS, IM, voice call or whatever. Such services are not only expected to reduce customer churn and help operators stand out in a crowded market place, but will go some way towards assisting operators avoid the fate of becoming dumb pipes. It is expected that operators may also be able to charge a premium for the use of such services, thereby opening up additional revenue streams. In the same way that consumers at applications stores may pay for certain premium applications, so mobile users may one day pay for such services. What is certain is that in order to survive in a saturated marketplace where pressures are only set to increase, mobile operators should take the opportunity to adapt. Regulation is just one catalyst for adapting their businesses, and it will undoubtedly bring opportunities as well as perhaps frustrations. By taking care of and fully exploiting their core assets – their networks – and innovating to keep customer loyalty, operators may be able to retain a significant customer base and healthy margins. |
| < Prev | Next > |
|---|
|
|
|
|
|
|
|
|
|
|