Contributed by Ash Dahod, Cisco SVP/GM of the Mobile Internet Technology Group
Mobile communications are expanding rapidly, and this is changing the way we all work, live and entertain. We are now truly able to stay connected virtually anywhere, anytime. The market and its associated technological advancements are moving very quickly and this was even more apparent as I met with customers, partners and colleagues at 4G World in Chicago.
We are all aware of the Mobile Internet tidal wave that is upon us and a lot of the talk at the show was how we can prepare for this next wave of technical advancements. Additionally, what was on most of our minds was how we can do this profitably.
I had the opportunity to speak at the conference and shared some thoughts on how the right network with the right combination of performance and intelligence will drive mobile operator profitability.
In the simplest form, we have to change the way we are looking at the market from a technical and business point of view.
We need to look at profitability and the ways we will address revenue and expense. Intelligence will be central to our new business models, new revenue streams and the efficiency of the network. From this perspective, we see that we need to increase the investment in network intelligence.
The majority of CapEx is spent on traditional voice services and the radio network. The mobile Internet portion is much smaller. While this ratio may vary by market or operator, radio and spectrum will remain a major, major investment.
Network intelligence and IP will allow the mobile operator to differentiate their services, generate new revenue, while optimizing the traffic.
The intelligent IP network is the engine to profitability.
Here are some additional thoughts from our other Cisco speakers at 4G World 2010:
Cloud Computing’s Impact on Telecos
Evolution of the Mobile Network
Cisco’s Unified RAN Solution
Role of Femtocells in the IP NGN