Mobile operators find out the dangers of becoming a dumb pipe
As mobile phones become computers, laptops have become more like mobile phones. Even veterans in the industry have been taken aback at how fast mobile broadband has been embraced – using ‘dongles’ or built – in receivers in order to give internet access to laptops through high – speed mobile networks. The advantage of this is that it can be used everywhere and, unlike Wi-Fi, you are not restricted to a particular place. In just Western Europe, the number of mobile – broadband users will increase by 50% to at least 27 million this year, according to an analyst firm, IDC. There are about 100 million users worldwide.
What’s the reason for this boom in these times of economic recession? Operators have been reducing prices for data connections: 3 charges just 10 pounds for 1 GB of data. Dongle prices are also reducing. Connection speeds continue to go up as operators better their networks. The surprising success of netbooks have also contributed to this. Some operators have even gone to the extent of providing netbooks with contracts.
However, this growth has its disadvantages for operators. One of them is the reduction in control. Subscribers are allowed to do whatever they please: the operator is just a spectator who provides a ‘dumb pipe’ to the internet. Rates have also been falling fast. Didier Bonnet of popular consulting firm Capgemini, noted that the pricing is crazy and that mobile broadband is starting to become just another good.
Another downfall is overuse. Operators complain that a small proportion of users use most of the bandwidth. Illegal file – sharers are hard to track. In order to reduce their usage, operators are considering giving higher priority to some data packets over others. Holger Knopke, T-Mobile, said that ‘network neutrality’ will not be a success.
If they don’t want margins to drop, operators should look to increase their level of service and differentiate them. Olaf Swantee, Orange’s head of mobile operations, says that they have to innovate!
Source - economist.com
Huawei creates big mobile broadband card waves
As mobile data has become the choice alternative to voice and falling ARPU, Huawei launched its contribution to mobile broadband datacards and dongles, including 3G-ready laptops and netbooks.
Huawei reported they have sent off shipments totaling to sixty million mobile broadband units to some 133 countries all over the world. The released products already included datacards and dongles, among others.
This move from Huawei came just in time where cellular networks have the power to provide wireless data connectivity anywhere and everywhere. Along with that is the increasing number of mobile broadband laptops and netbooks which users now prefer to be 3G datacards-enabled or come with built-in modules.
Huawei earned over 55% of the worldwide mobile broadband market last year, according to a research, proving itself a strong competitor to beat. As for the mobile broadband card market, it ballooned to 10% in the first six months of 2009. Profits for its manufacturers and revenues of global servers were forecasted to hit $8 billion by 2013.
Dealers like Huawei and ZTE is anticipated to benefit from the fast growing mobile broadband cards, to include also vendors like Sierra Wireless, Option and Novatel. However, with its manufacturing and unique equipments packaging, Huawei and ZTE are seen to get an edge among its competitors.
Just over three years ago, Huawei launched the first ever USB modem E220, the only plug-and-play of its kind, which paved way for its other competitors to follow suit. Huawei, however, remained at great advantage because it opened a new market that rid of the old PCMCIA-based internet access system.
Fast forward to two years, Huawei launched E510, the world’s first terminal support to mobile TV services, and this year, the company demoed E5, the slimmest wireless modem. At the same time came the release of the first HSPA+ mobile broadband called E182E.
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