Cisco Blog > SP360: Service Provider

Making Money from Wi-Fi

The insatiable demand for smartphones, tablets, and other connected devices is generating staggering amounts of mobile data. The much-quoted Cisco Visual Networking Index (VNI) predicts that global mobile data traffic will increase 18-fold from 2011 to 2016, reaching 10.8 exabytes per month.   In tandem, the use of Wi-Fi for Internet access is exploding as more mobile devices are Wi-Fi enabled, the number of public hotspots expands, and user acceptance grows. Until recently most technologists and mobile industry executives viewed it as the “poor cousin” to licensed mobile communications.  And they most certainly never considered a role for Wi-Fi in mobile networks or their business.  The explosion of mobile data traffic has changed all of that.  Most mobile operators now realize that offloading data traffic to Wi-Fi can, and should, play a significant role in reducing clogged networks and the number of unhappy customers.

Mobile operators understand that off-loading data traffic to cheaper Wi-Fi defers significant capital expenditures for further build-out of the licensed network.  Operators around the world however, are asking if there is more to Wi-Fi than just data offload? Can they actually make money from Wi-Fi by turning the cost of doing business into profitable business models?  Read More »

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Expanding Universe of Mobile Video Opens a World of Opportunities

Mobile video is exploding at a rate unimagined only a few short years ago. Whereas the quick YouTube clip had been a satisfying enough diversion, consumers armed with next-generation devices now demand the latest bandwidth-busting, 2-gigabyte Hollywood opus. The end user wants it on his iPad, and he wants it now.

For the industry at large, this creates no shortage of challenges. According to the Cisco Visual Networking Index, by 2016, 71 percent of global mobile data traffic will be video, placing a heavy burden on the network. But along this next frontier of mobile video there are also unprecedented and exciting opportunities.

Read More »

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A Data Deluge, Driven by Tablets and Mobile Video, Is Disrupting Mobile Carriers

Only a few years ago, the challenges facing mobile providers seemed well within the realm of their traditional expertise. Their vast and complex infrastructures, built around towers, antennas, core networks, and the like, focused on providing the bandwidth and signal quality necessary for providing clear voice signals. Early mobile Internet applications were limited to services like weather, news, and stock quotes. As video entered the picture, it was mostly limited to a quick, manageable snack here and there on YouTube. After all, on a tiny, phone-sized screen, the prospects for a sumptuous two-hour movie feast were limited.

The situation, however, is being radically transformed. And at this years’ Mobile World Congress, which I attended last week in Barcelona, a clear focus was on a prime disruptor: the tablet and vast, media-rich applications. For with the sudden and phenomenal growth of the iPad—along with its Android-based counterparts—end users who had been limited to quick bites on YouTube are ready to indulge in long-form video buffets, anytime and anywhere. And while those game-changing tablets don’t quite provide an IMAX experience, their larger screens nevertheless offer the perfect mix of visual quality, mobility, and convenience.

For mobile service carriers, however, this has created a certain amount of havoc. Read More »

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User Flexibility with Mobile Cloud

In the opening of John Chamber’s keynote at Mobile World Congress in Barcelona, he stated that “Cloud and Mobile will change the service provider industry” and that there will be 7.2 billion mobile devices by the year 2015. You’ll agree that with the explosion of end-devices out there combined with the need to access anything, anytime, anywhere, a mobility strategy can cut across the entire portfolio for a service provider.

Increasingly I’m having conversations with mobile operators on how Cisco can help with:

  • User presence and customized delivery,
  • Monetization and migration of existing offerings to cloud,
  • Bundling of multiple services,
  • Handling a variety of endpoints, and
  • Ensuring pervasive security.

Read More »

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Another Mobile World Congress Wraps

Musings and mutterings from the just-completed Mobile World Congress 2012 . . .

  • Darned if this still isn’t the only place in the universe where there are waiting lines leading into the men’s rooms but not the ladies’ rooms . . . Obviously, the planners did not heed my carefully crafted suggestion for improvement made in the wake of the 2011 event.
  • Barcelona did get the weather right this year, though – Each day was darned sunny and fairly warm . . . a decided contrast to the last two Februarys.
  • The show was held two weeks later this year than in previous years, so no one had an excuse for being away on Valentine’s Day.  “Sorry, honey, but I ‘have’ to go to Barcelona this week . . .” didn’t work this time.
  • All that aside, MWC continues to enhance its position as the largest, most important service provider-focused show of the year. 
  • The projected attendance was 65,000, about 12% more than in 2011.  It will be a few days before the official figure is posted, but, judging from the traffic inside and outside the Fira de Barcelona all four days, the estimate seems reasonable.
  • The most prominent theme this year was SP Wi-Fi/small cells . . . which just happened to align perfectly with Cisco’s key messaging and announcement.  Not to mention numerous customer-focused mentions this week and last.   Cisco focused “not only on what we make, but what we make possible.”
  • Other consistent themes included monetization, optimization, reducing capex and opex, and cloud applications. 
  • ARPU continues to stagnate . . . a real problem for operators.
  • Another theme often heard is that service providers are more and more looking for advice from vendors.   There was a time when that was not true.  “They’re looking at the situation and saying, ‘We need some help figuring out what to do with all this stuff,” one analyst remarked.     Another added, “It’s VERY important for a vendor to be considered a trusted advisor.”  Hmmm – Does Cisco’s consulting arm – the Internet Business Solutions Group (IBSG) – ring a bell?
  • Mobile World Congress has evolved – as it must – in its approximately 15 years of existence.   Real old-timers remember when it was small and very clubby.    Particularly in the last few years, it has changed and broadened as the concept of mobility has become more ubiquitous.  “Three years ago, it was more of a pure infrastructure show with the Huaweis, Ericssons of the world holding forth,” said one.  “Last year, companies like Samsung and Google got much of the attention.  This year, it’s WiFi and small cells.”
  • “Four years ago here, a Hotspot was an oddity,” one analyst said.  “Now, it’s the norm.” 
  • In a Cisco analyst/media event about small cells, Telstra CTO Dr. Hugh Bradlaw said, “It’s the network, stupid.  That’s what makes the cloud possible.”
  • Machine-to-machine continues to grow in importance.   One analyst firm characterized it this way: “M2M = M3 . . . Make More Money”.
  • Overheard while standing in line at the men’s room: “Operators are chasing the consumer too much and not realizing that a lot of SMBs and mid-market companies are dying for solutions that are right in their [the operators’] sweet spot.”

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