Will operator data caps hurt iPhone, Android more than Blackberry?
An investment house research note links data cap trends directly to smartphone success.
If and when mobile operators start charging by the byte, smartphone vendors will feel the crunch, too, as devices able to deliver fewer bits per feature — such as simple and highly-compressed Blackberry e-mail messages — will be hit less by the bandwidth crunch than devices with more content-heavy applications.
It may seem odd in the days of expanding bandwidth to be thinking about preserving bits again — much like in the early days of the Web — but looming data caps and the emergence of more bandwidth-consuming mobile apps has put that consideration back in play, according to a research note today from Peter Misek, technology analyst with Canaccord Adams.
“On a per-[megabyte] basis, wireless texting has been the most profitable application for service providers, generating about $1000 per [megabyte] used,” Misek wrote, noting that “as the industry moves toward Web browsing, streaming and content downloads, the per-[megabyte] revenue for carriers has dramatically fallen.”
That financial equation, as well as straightforward concerns about bandwidth availability, has led to recent high-profile calls — such as a recent speech by Dick Lynch, chief technology officer for Verizon — for mobile operators to move more aggressively to instituting data caps or tiers. Though not all market watchers agree, using pricing to manage consumption is likely to prove an irresistible solution to the bandwidth crunch — at least until 4G networks arrive.
In particular, Misek pointed to Rim’s BlackBerry platform — especially the data compression capabilities enterprise server and operations center platforms — as helping enterprises and operators squeeze more data down wireless pipes. For instance, BlackBerry service is capable of sending 11 times more e-mails per 500 megabytes of data capacity than an iPhone. With that same bandwidth, the Blackberry can deliver 7000 Web pages versus 3000 for the iPhone. “With more talk of usage-based pricing models coming to the forefront, we expect that the consumer will become even more attuned to the bandwidth differences between the BlackBerry and others,” he wrote.
That bandwidth advantage translates into carrier advantages as well, Misek claimed. “We believe that in a scarce spectral environment, RIM’s NOC/BES architecture and compression technology will be worth tens of billions of dollars to global operators,” he wrote. “There is no contention on our part that the iTunes and App Store platform is the superior global content platform. But if you can’t connect to the Internet, having the best platform will not matter.”
Want to use this article? Click here for options!
© 2014 Penton Media Inc.
In this Webinar you will learn how to create a real-time relationship with your customers, how to proactively improve the customer experience, and how to successfully target and cross-sell services to boost incremental revenue.
- Megabytes to Megabucks, Bandwidth to Business Models: How 4G Is Changing Everything
- How to Unplug Your Redundant Telco Apps To Save Money and Improve Efficiency
- When IaaS Isn't Enough: Service Provider Business Models to Drive Growth and Build Margin
- How to Transform Your Aging Telco Voice Network to Drive New Profits and Revenue
- Creative Licensing Approaches for Telcos & Their Network Equipment Vendors
- Smart Home Opportunity: Balancing Customer Data & Privacy
This paper discusses the rise of Diameter and benefits of Diameter Protocol.
- Conducting The Orchestration – Order Management at the Speed of Business
- Toward a Converged Network Edge
- Beyond Spam – Email Security in the Age of Blended Threats
- 6 Important Steps to Evaluating a Web Filtering Solution
- The Expertise to Protect You from Botnet and DDoS Attacks
- Seeing is Believing – Bridging the Order Visibility Gap
Service providers are under tremendous pressure to turn up new services faster then before and, at the same time,
to do it at less expense - and intra-office fiber is one of the biggest challenges in terms of both cost and service
From the Blog
Join the Discussion
Get more out of Connected Planet by visiting our related resources below:
Connected Planet highlights the next generation of service providers, as well as how their customers use services in new ways.Subscribe Now