| 3G cellular a very expensive bit pipe? |
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| by Stuart Corner | |
| Monday, 30 January 2006 | |
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The company sees the increasingly widespread adoption of "all-you-can-eat" data tariffs for 3G services, and the increasing size of voice "buckets" in some markets as driving the industry away from usage based pricing models towards the flat-rate subscription models adopted by ISPs since early 2000. To add to operators' woes Shosteck points to alternative wireless broadband access technologies that could enable users to by-pass the mobile operator altogether. For example, WiFi is already providing mobile users a choice beyond the cellular network for access to the Internet, for access to content and soon even for voice while on the move. According to Shosteck CEO, Jane Zweig, "There is a danger that longer term profits from music or video downloads will probably not add up to what mobile operators are hoping for. Too many forces are combining against it. Downloading and uploading to and from users' PCs via wired/wireless connections is relatively simple, plus removable memory cards are increasingly being used for data transfer. Added to these forces is the competition/overlap from portable music and video players like the iPod." Furthermore, Shosteck says, developments outside the control of the operators are creating a shift from mobile operator controlled portals to a more open Internet model. "The mobile industry is starting to experience the Internet Effect where content and services are being brought to market from an almost infinite number of sources. Though operators provide the services and infrastructure that make the Mobile Internet possible, the content and services flowing through it are increasingly being provided by entrepreneurial, independent content providers and aggregators." Zweig said.
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