Are operators ready for unlimited Mobile Broadband usage?

The move to unlimited cellular voice minute plans is an opportunity to prepare for future Internet-driven data plans without bandwidth restrictions.

Verizon Wireless, AT&T Mobility, and T-Mobile unleashed unlimited cellular voice plans on US power users last week. For approximately $100 a month, subscribers can make and receive unlimited domestic calls. The movement towards unlimited voice minutes is a precursor to future unlimited data access as pervasive mobile broadband networks emerge.

The analysis of how much data an individual consumes when no financial barriers are imposed is not well understood. Stories are rampant about excessive phone bills for users who surpass monthly bandwidth and time limits imposed by mobile operators. Germany's Deutsche Telekom (parent of US carrier T-Mobile) is witnessing the impact that iPhone data use has on its network. "iPhone customers retrieve weather reports, stock prices, and YouTube videos from the Internet on the go -- all as a matter of course," says René Obermann, CEO of Deutsche Telekom AG. "The average Internet usage for an iPhone customer is more than 100 MBytes. This is 30 times the use for our average contract-based consumer customers."

One way to measure that potential is to offer a promotion that doesn't interfere with the standard operation of the network. It could be called Mobile Mondays[1], for example. On every Monday for the next three months, all customers with data-capable devices could consume an unlimited amount of data without contract-imposed limits or penalties. Traffic for the first few weeks would demonstrate the initial surge of data-hungry use. After the awefactor wears down, subscriber habits will also settle to a level that provides real insight into usage patterns.

This data collection activity would assist operators in identifying network pinch points where capacity upgrades are necessary. It would also provide them the tools necessary to determine the value a consumer assigns to such a feature. The insight into consumer behavior could also uncover valuable, next-generation applications that require an unmetered mobile pipe.

_{[1] The Mobile Mondays promotional idea should not to be confused with the grassroots MobileMonday community of mobile industry visionaries, developers and influencers who are fostering cooperation and cross-border business development through virtual and live networking events to share ideas, best practices and trends from global markets. If a MobileMonday chapter is in your locale, check them out. They offer a great networking and learning environment for mobile-minded people.}


By Jeff Orr
ORR Technology

Wednesday, February 27, 2008 in Business  | Permalink |  Comments (1)