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Mobile Service Provider Growth Priorities

As the Mobility industry converges upon Mobile World Congress in Barcelona this week, I wanted to talk to you about subjects we will all be talking about at MWC – monetization, optimization, and the video experience.

There’s been considerable speculation about the demands that are placed on today’s mobile infrastructure and how rocketing traffic volumes will impact the network operator’s business model.

We decided to explore service provider’s expectations for the ongoing development of the mobile Internet. More specifically, their thoughts on monetization and network optimization, especially around bandwidth-intensive applications, like mobile video.

So we commissioned a market research study that was recently performed by Heavy Reading.  Based on interviews with over 50  mobile operators from around the world (the interview subjects did not know that this was a Cisco-sponsored survey), here is a summary of what they told us (full report embedded at the end of this post):

Charting a Profitable Growth Strategy

  • Growing an active, paying, mass market mobile broadband subscriber base is seen as a pre-condition for more sophisticated monetization strategies.
  • Operators view “Tiered Services” as the most attractive monetization use case. This is especially the case in HSPA+ and LTE networks which now have enough capacity that operators can start segmenting their service offerings.
  • Other use cases that operators can use to drive data penetration and usage were also favorable viewed, e.g., group data plans and session/day pass or other time-based charging services.
  • Models that can help meet the dual goals of subscriber growth and generate better yield from existing and higher-end subscribers are most attractive. Maintaining a balance between those two objectives is, of course, preferred.

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Has our Curiosity Become Lazy?

“Growth in output and median incomes has slowed in rich countries because the pace of innovation has slowed” The Economist

This article sets out the argument that aside from the obvious “revolution” in computer technology and the internet not much has changed in the world’s rich nations in the past 40 years. Read More »

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Announcing the Cisco Visual Networking Index Mobile Forecast, 2010-2015

26X.  That’s the amount of increase in traffic the global mobile internet is going to have over a 5 year span from 2010 to 2015, as forecast by the latest iteration of the Cisco Visual Networking Index released today. 

VNI Global Mobile Data Forecast Growth

As many of you long time readers know there are few things that get me as excited as this data because:

  1. While we read about point announcements here or new services there, this gives context to us all and allows us to look at the “forest” vs. just the “trees”.
  2. Our customers really, really (is it overdoing it to say “really” again) like this data, which gives us an opportunity to showcase just one of the ways that we strive to be not just a vendor but a partner to them, and it’s always great to spend more time with them.
  3. The data is the result of a great team that I am proud to be a part of as well as data feeds from not just third party industry analysts whose forecasts we incorporate, but also that of contributions of over 390,000 people worldwide feeding us their unique, primary data about their network experience directly from their devices.
  4. I think big numbers are simply cool.

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Cisco CLUE Part 4: Global mobile moxie – no cord, no problem

Welcome back to our fourth and final installment of the updated Cisco Connected Life User Experience (CLUE) Index findings. We’ve previously covered residential and business services, and today, mobile services will be in the spotlight. The “On the Move” portion of the CLUE Index grew 19.45 points, from the baseline 100 index points value (based on 2008 global service adoption data) to 119.45 (based on 2009 global service adoption data). On the Move grew more than other segment in our study. Personal mobile devices (smartphones, PCs/laptops, tablets, E-readers, et al.) have become indispensable communications, information and entertainment gear for global wireless consumers. The combination of expanded 3G/4G networks, broader wi-fi access and greater device computing power for advanced mobile broadband applications and services has enabled this segment to flourish in spite of a challenging global economy. Here’s a graphic summary of business services global growth:

graphic summary of business services global growth

We tracked global penetration of the following mobile services as part of our CLUE research:

  • Mobile text messaging: mobile text-based services, including Short Message Service (SMS) and instant messaging
  • Mobile Multimedia Service (MMS): mobile services that include multimedia objects such as images, videos, audio, and rich text in addition to text
  • Mobile email: email on mobile phones
  • Mobile gaming: downloads of full games as well as online gaming on mobile phones, including single-player and multiplayer online games
  • Mobile music: full track downloads and music streaming services on mobile phones
  • Mobile television: scheduled TV content delivered over cellular and broadcast infrastructures
  • Mobile video: on-demand video content downloaded or streamed to the mobile handset
  • Mobile social networking: mobile services ranging from simple chat rooms with only texting tools, to multimedia-rich environments and user-generated content (UGC) sharing communities
  • Mobile LBS: services that include personal navigation, point of interest (POI), friend-finder, and family-tracker services
  • Mobile commerce: services such as mobile banking, local and remote mobile payments, and domestic and international funds transfer

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Cisco CLUE Part 3: No such thing as “business as usual” for today’s global workers

Yesterday, we discussed the “At Home” or residential services category of our Cisco Connected Life User Experience (CLUE) Index findings. Today, we’ll focus on the “At Work” or business services category of our CLUE research. The At Work portion of the CLUE Index grew 14.17 points, from the baseline 100 index points value (based on 2008 global service adoption data) to 114.17 (based on 2009 global service adoption data). Globally, businesses are supporting telecommuting employees, remote workforces, and improved communication with partners and customers through network systems and resources. As businesses have had to re-evaluate their travel policies and budgets, video conferencing and other web-based collaboration services have been adopted as cost-effective alternatives. Here’s a graphic summary of business services global growth:

graphic summary of business services global growth

We tracked global penetration of the following business services as part of our CLUE research:

  • Business instant messaging: fixed-line business instant messaging, including all business users of on-premises and hosted email
  • Business IP telephony: IP telephony lines or end points that are attached to a dedicated IP-enabled or a dedicated IP phone system, not including shared or multitenant solutions
  • Business audio conferencing: phone-based conferencing with no video
  • Business web conferencing without video: collaborative sessions that use a standard web browser or downloaded client to share an application or to make a remote presentation over the Internet
  • Business personal video conferencing: includes client-server PC-software-based desktop conferencing, video telephony, web conferencing with video, and executive video conferencing
  • Business room-based video conferencing: group video conferencing that includes Cisco TelePresence® systems and multicodec and single codec conferencing systems
  • Mobile business email: mobile business email for users on an enterprise mobile account; this is considered an extension of office email service
  • Mobile business messaging: messaging for users on an enterprise mobile account; this is considered an extension of the office messaging service
  • Mobile business location-based services (LBS): business LBS for mobile employees such as the salesforce, and other location-tracking services for industries such as transportation, health, and security

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