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Growing Influence of Mobile Broadband and What it means for ISPs in 2015

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29

Jan, 2015

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In a report published this week by Mobile Industry Review, the team has collected, summarized and analyzed the available set of information about the state of internet and how it is impacting the lives of people around the world. From decreasing views from desktops to increasing social media presence the article is an all-round piece. However, there are less obvious facts that might affect the ISPs in 2015 and beyond. Let us look at a few of them.

ITS OFFICIAL: Mobile Data is the king.

An initial industry estimate about the mobile broadband was that the mobile broadband is restricted to the developed nations, which made sense because mobiles with Broadband cost more than the one which do not have a broadband. However, countries like Nigeria and India are in the leading when it comes to the Mobile Broadband Share in the overall internet consumption (website access) of the respective country. As a matter of fact top 5 countries in the ranking are developing markets.

Accessing mobile data seems to be a catching trend due multiple facts like m-commerce, high speed 4G technologies for accessing internet on the go, growing Wi-Fi coverage in the urban areas, mobile friendly content, etc., which are just the few reasons.

Mobile Data is growing, increasingly!

In Q3-2009, 100 Petabytes of data was sent over the web per month. This increased 3000 Petabytes / month by the Q3, 2014, a whopping 3000% growth, and the growth curve does not show signs of slow down. This growth can be attributed to increased online streaming content, added online service delivery, increased enterprise service delivery, etc. In terms of governance, many governments have really travelled the distance in bringing aspects like e-security, e-health, e-governance, etc.

With the utilization of such services increasing, internet has grown in prominence. Although the front end is yet to be automated and aligned towards global standards, countries like India have long migrated to complete automation of their operations in the backend a long time back. This makes sense for a country like India, since it allows improved efficiency and transparency in transactions. The benefit of infrastructure is in addition to addressing the core challenge; the same infrastructure can be expanded to include other services and needs of other segments of business.

Social Media makes more sense with Mobile:

Social media is increasingly evolving into a mobile centric concept and the user experience is much better when used on mobile. Widely accepted Social Media platforms like Facebook and Twitter allows users to share and read real-time feeds not just about their world but about the whole world. Subtle interactions with their friends and family over the social media in real-time is possible only when the user is on a mobile device.

Facebook, which also allows their users to share videos on their walls and pages, is one key aspect.  As a matter of fact, the concept of videos on the go is made popular by Facebook and made possible by YouTube. This led to a steep surge in video streaming over mobile. In addition to this, HD videos consume lot more data than traditional video quality.

Our Take on the subject:

Mobile Data has been a key strategy for the telecom industry for quite some time now. Over the past decade, mobiles started playing important role in the communication market, which was fed by technology and grew with competition, and users around the world have increasingly accepted Facebook and Twitter leading to huge surge in the mobile data consumption. Various players in the content value chain have aligned their delivery strategy to meet the customer preferences of consuming data on the go. Hence, almost all the content delivery platforms, websites and browser based streaming are made mobile compatible and today we have apps to stream the content on the device directly to personalize the delivery of content.

What it means to ISPs:

Most of the mobile data consumed today is either 3G or 4G platforms by the cellphone users. Hence the data packages are bundled with their mobile plans. However, with the increase in data consumption at the current rate, users will ask for broader spectrum of choices in terms of what they. Before the 3G era, the data usage on the go is very less due to minimal or basic speeds and hence the service is more like good to have feature. However, in the current scenario operators should give the users more choices in terms of data packages, which are independent of the voice packages.

Operators need billing / CRM which are designed by people who understand these business implications and a flexible Broadband Billing Solution which opens possibility to play around with the business rules. However, in a connected eco-system, billing system alone cannot address all the challenges. An operator needs an effective PCRF solution, a charging mechanism (OCS & OFCS) and policy enforcement mechanism (PCEF) to deliver the services in tandem with the Billing Solution. However, since a telecom billing system acts as a backbone for the entire stack of BSS and OSS solutions, Billing system should be capable of flexible enough to integrate with these stack of solutions and communicate seamlessly in real time to successfully execute a use case.

The bottom line:

However, solutions with such abilities cost a bomb and operators are functioning in ever competitive markets. Hence, money is one thing they are very concerned about. A solution should also be rightly priced to make sure the benefit of these market opportunities in trickled down the value chain effectively.

By : Kasyapa Malladi

KasyapaMalladi works with SURE! as a Product Marketing Specialist in Broadband. Kasyapa specializes in budget based marketing campaigns, strategy implementation in developing economies and in fostering and sustaining partnerships. Kasyapa’s experience includes Marketing Strategy for Cloud products in developed markets.

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