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.
Mobile data traffic will surge through 2015, growing 26-fold to 75 exabytes per year. A remarkable 66% of that traffic will be video! (Source: Cisco VNI Mobile Data Traffic Forecast, 2010-2015). My family uses an iPad or iPhone to watch Netflix movies and YouTube video clips and I see a lot of smartphone and tablet users doing the same.
This explosion in mobile data and video traffic creates challenges for service providers and mobile operators. First, to reliably provide a user experience that is “more” – more personal, more visual, more social, more collaborative, and more productive. Second, to efficiently manage the sudden increase in data traffic while concurrently expanding the number and kinds of services offered. AND, as if that weren’t enough, to do all this while decreasing costs and increasing revenues.
Definitely not business as usual… in fact, “challenging” may be an understatement.
It’s that time of year again, and though this will be my 5th Mobile World Congress, I’m very excited to be returning to Barcelona. I think this show will be the biggest in the GSMA’s history, and I know, from Cisco’s perspective, this will not only be our biggest, but also our best MWC.
For those of you who will also be attending MWC, I want to take a few moments to let you know what you’ll find at the Cisco booth. And for those of you not attending, I want to give you some information and links to help you feel like you’re right there with us.
First, we have a full line-up of impressive speakers, including our Chairman and CEO, John Chambers.
One interesting observation I’ve seen is how something as obtuse and techie as IPv6 has generated so much interest in the main stream press - such as this article at the Wall Street Journal, Web Running Out of Addresses. Even my mother asked me about it on the phone last night “will the internets shut down?” No way mom…we’ve got that covered. The Internet will be Preserved, Prepared, and then Prosper!
I thought my children would never fully understand what a life changing experience the Internet has had on our society. They do not know life without it. However, with the imminent depletion of IPv4 address space, this possibility could still exist. When they are ready to subscribe to broadband on their own, will the Internet be ready for them to connect?
The Internet will soon be going through large-scale transition. The current Internet Protocol address scheme known as IPv4 is near depletion, with the “free” address pool held by the Internet Assigned Numbers Authority (IANA) due to allocate the final IPv4 address any day now. According to Geoff Huston, APNIC Scientist, the IANA will run out of addresses in February. And the first date for a regional Internet registry to exhaust its addresses is October 2011 given current utilization rates. Once the Regional Internet Registry (RIR) free pool is exhausted, the Internet will need to evolve because no more IPv4 address space will be available from the RIRs. Without a solution, Service Providers (SPs) will not be able to seamlessly connect the massive growth of new revenue opportunities from smart phones, tablets, machine-to-machine applications, and sensor networks.
In an ideal world, everyone would just switch over to the next generation of Internet protocol, IPv6. The IPv4 address shortage could be avoided, innovation and progress would continue, and the global economy would go on uninterrupted. IPv6 offers plenty of address space for every conceivable application.