On a global scale, the mass migration to 3G network technology is yet to come. The chart below – produced by In-Stat, the mobile internet/digital entertainment market intelligence firm – indicates that in 2010, only 17% of the world’s 4.3 billion mobile subscribers are on 3G networks or higher. This means that 83% are unable to play video and access other high-bandwidth applications that the proliferating iPhone/Android community uses every day.

In the second half of 2008, a number of 3G networks began showing signs of stress due to traffic congestion caused by multimedia-hungry subscribers with powerful mobile devices. After years of investment to drive data adoption and fill their 3G pipes, the operators of these networks were now facing frustrated consumers forced to contend for bandwidth and watch stalling videos.

Two years later, the stress has become seriously aggravated and elicited public comments like the following from the AT&T CTO, in response to widespread criticism of network service quality: “We will move heaven and earth [to meet our customers’ growing data needs]” (VentureBeat – July 12, 2010).

The In-Stat data, corroborated by other industry sources such as Gartner and Morgan Stanley Research, makes it clear that the challenge to operators is still in its infancy. Moreover, it will continue to accelerate for the next decade and beyond, as a) more consumers adopt mobile data, b) more consumers upgrade to iPhone-/Android-class smartphones, and c) more networks advance to 3G and beyond.

-Tod Bottari

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It is clear that India’s mobile internet revolution has become a primary driver of economic development. Millions of urban and rural poor, from Kolkata rickshaw pullers to Rajasthan camel herders, now carry mobile phones. With the number of devices in the market exploding, the wireless Web is growing rapidly throughout India. A report from AdMob shows that  mobile advertising grew by 1.5% last quarter in India - which does not yet have full 3G penetration.

Bytemobile is sponsoring an important thought leadership event for wireless network operators and ISPs next month at India – VAS Asia 2010.

Deepak Mahajan, Bytemobile country manager for India and SAARC, will present the challenges and opportunities of managing the data deluge. He will address the priorities of customer satisfaction and retention, and how to achieve them by enhancing the user experience and increasing network efficiency and intelligence. Mahajan will also focus on the delivery of greater personalization based on a deep understanding of the customer’s individual needs and interests – ultimately leading to profitable revenue growth for India’s wireless service providers.

- Jaishree Subramania
 

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The CTIA panel – held at 3:15 p.m. on March 23 and moderated by FierceWireless Editor-in-Chief Sue Marek – included executives from BelAir Networks, MetroPCS, Sprint, TowerStream, and Xanadoo. Highlights of the panelists’ general comments on 4G differentiation were as follows:

• BelAir Networks: The key to successful roll-out is investment in here-and-now solutions for delivering efficient 4G networks.

• MetroPCS: Simple, affordable, unlimited service is its commitment to customers and will continue to be its differentiated business model. Now, there is a growing requirement to efficiently manage data, and the customer base is moving to smartphones. MetroPCS is excited to bring the full mobile Internet to all of its subscribers.

• Sprint: Expects to offer 4G this year, with an aggressive roll-out of services. Indications are that 4G service is 10 times faster than 3G service. The key challenge for large service providers will to differentiate their 4G service from others.

In response to the moderator’s questions – “Does network speed matter? Do customers really know the difference? Will speed drive people to upgrade service?” – the panelists commented as follows.

• MetroPCS: High speed definitely matters to customers, who want to take their internet experience mobile. Smartphones demand higher bandwidth. Service providers need to deliver an affordable quality internet experience – anywhere, anytime. The key to success will be pricing and usage-based infrastructure.

• Sprint: Most people can tell the difference and will upgrade to faster service. When you are actually experiencing and using 4G, you ‘get it’. Fifteen years ago, people knew the difference between wireline and wireless connections. The same will be true for the difference between 3G and 4G experience.

All panelists agreed that user experience will be a major differentiator when consumers choose a 4G wireless service provider.

-Stacey Infantino

Image courtesy of adam & lucy via the Creative Commons attribution license.

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With iPhones already earning the reputation as ‘bandwidth hogs’, and networks with heavy smartphone use already under intense pressure, devices like netbooks and USB dongles are adding even more stress to carriers’ infrastructure.

With today’s introduction of the Apple iPad - a device for which users’ quality-of-service expectations are extremely high – operators’ capacity challenges are mounting and may push their networks over the edge.

What we know about the Apple iPad:

Every iPad has Wi-Fi, but Apple also has models with 3G.

There are two wireless data plans. The first provides up to 250 MB per month for $14.99. The second provides unlimited data for $29.99. AT&T is the exclusive service provider and includes free use of AT&T Wi-Fi hotspots. In the U.S., wireless operators typically charge about $60 a month for a laptop data plan.

There is no contract — service is prepaid, so consumers can cancel any time. That’s a big change from the iPhone. All iPad 3G models are unlocked, so consumers can use them with any carrier that supports micro-SIM technology.

The question is: are carriers’ networks equipped to handle another, even more massive, explosion of mobile data consumption?

If Apple’s new iPad lives up to the usage patterns – and more importantly – the bandwidth problems of the iPhone, then the answer is: probably not.

In a recent Wall Street Journal blog post, Niraj Sheth wrote:

…the iPhone is hardly the kind of data guzzler the tablet is widely expected to be. After all, it’s one thing to squint at movies on a 3.5-inch screen and quite another to watch them in a relatively cinematic 10 inches.

With this in mind, carriers can surely expect a ‘secondary’ explosion in video and other multimedia traffic. They need to prepare their networks now in order to avoid consumer backlash. Another quantum leap in data traffic will not only strain the network - and thus the user experience - but will also strain profit margins due to out-of-control infrastructure costs.

We should expect to see the wireless industry put a priority on intelligently managing network traffic and experimenting with new ways to curtail the margin squeeze - whether through tiered pricing plans, stricter enforcement of fair use policies or new value-added services.

-Stacey Infantino

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