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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With the iPhone now available from all three of Singapore’s operators, the service plans associated with the device became the main battleground for market share. Throughout the month of December, consumers saw each operator tweaking its respective plan pricing to better the deal of the others. When one came out with an alluring offer, the others responded with similar or better deals almost instantly. Within a span of four days or so, the various iPhone service plans had undergone multiple adjustments and settled into a state of equilibrium, where there is now little difference among the offers of the three operators.

Today, the aggressively priced service plans created for the iPhone are also being offered for other smartphones. In the end, consumers win.

Read iPhone Price Plans Round-Up for more details.

-Kok-Bin Lee

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Reinforcing the value of Bytemobile’s new analytics service for network operators – announced today - Bytemobile issued its first mobile data report for the industry. The Mobile Minute Metrics report anonymously sources the data traffic in a global cross-section of larger Bytemobile customers’ wireless networks and provides insight into the current state of the mobile ecosystem.

What is most notable from the data gathered in this report is the impact that touchscreen smartphones – the Apple iPhone in particular – is having on operators’ wireless networks. Accounting for 39% of the total volume on networks, video has already become the dominant form of mobile data traffic. Considering that only 1-2% of wireless users are currently using their devices to watch video, it will be critical to keep a close watch on mobile media consumption trends.

Other highlights from the Mobile Minute Metrics report include the following:

●             Generally, there are 10-15 times more web users than video users. However, on average, video users generate an equal amount of network traffic - i.e., one video user produces the same amount of mobile data as approximately 10-15 web users.

●             For the majority of operators without touchscreen smartphones, laptops dominate total network traffic at 94%. However, operators servicing touchscreen smartphones are finding that the devices generate 52% of the traffic on their network.

●          The average internet video is approximately five minutes in length. However, 50% of videos are played for 60 seconds or less, with the majority of users viewing only 10-30 seconds of the video.

To obtain a copy of the Mobile Minute Metrics report for 4Q 2009, click here.

-Stacey Infantino

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