Maybe you've seen one of today's top articles: AT&T dropping their unlimited data plans for new customers. This a direct result of the introduction of so many carrier network-hungry devices (and the attendant carrier hungry applications). If you haven't seen it, it is great reading: http://yhoo.it/apvfHI.
It's an understandable and expected move - especially when you think about the droves of users expected to come onto the network in the near future (cellular giant Ericsson predicts a doubling of users each year for the next 5 years). Also, imagine a few million people watching Glee reruns in HD on their iPads and you get the picture. This scenario will understandably force carrier grade networks to move steadily towards the data usage plans already developed for typical land-line usage.
But, the most interesting part of the article is what's missing: any discussion around expanding the carrier network and providing higher bandwidth to consumers. Instead the article dwells on charging the heavy users for using the network. With more and more applications being written for smart devices, many of them applying little thought to conserving bandwidth usage, it's understandable that unlimited data can be a black hole for carriers (and is doomed). The bigger message here is the inexorable march towards bigger and faster mobile networks and the need to adopt LTE / 4G technologies sooner than later.
The other message here is how will carriers maintain an acceptable ARPU and remain profitable. How will they financially justify the move to LTE / 4G? Charge for streaming HD? Show advertisements next to all served content? Create and serve content themselves?
It's an understandable and expected move - especially when you think about the droves of users expected to come onto the network in the near future (cellular giant Ericsson predicts a doubling of users each year for the next 5 years). Also, imagine a few million people watching Glee reruns in HD on their iPads and you get the picture. This scenario will understandably force carrier grade networks to move steadily towards the data usage plans already developed for typical land-line usage.
But, the most interesting part of the article is what's missing: any discussion around expanding the carrier network and providing higher bandwidth to consumers. Instead the article dwells on charging the heavy users for using the network. With more and more applications being written for smart devices, many of them applying little thought to conserving bandwidth usage, it's understandable that unlimited data can be a black hole for carriers (and is doomed). The bigger message here is the inexorable march towards bigger and faster mobile networks and the need to adopt LTE / 4G technologies sooner than later.
The other message here is how will carriers maintain an acceptable ARPU and remain profitable. How will they financially justify the move to LTE / 4G? Charge for streaming HD? Show advertisements next to all served content? Create and serve content themselves?
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