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Thursday, November 24, 2011

Shared data tariffs, bill shock, net neutrality and mobile traffic management

Mark Bridge writes:

Today’s mobile phone customers want more and more mobile data, which is stretching network capacity. In addition, many of those consumers would rather not be committed to a limit; they’d rather have a mobile internet tariff that is (or appears to be) unlimited. This puts even more pressure on mobile networks.

Something that’s starting to be suggested as a solution - not just to the challenge of increasing data demands but also to the risk of ‘bill shock’ - is the shared data plan. In fact, Orange UK has already launched a combined iPhone and iPad plan that let the two devices share a monthly data allowance on a single tariff.

I’ve been speaking to Randy Fuller, Director of Strategic Marketing at mobile data management company Tekelec, to learn more about sharing data.

“Right now, almost every single mobile data package is purchased on a device-by-device basis. So even if I have an iPad and a smartphone and a USB modem, there are generally three different separately-counted line items - probably even three different bills. The idea is to collect all of those together”, he explained.

Shared data plans don’t just simplify billing for consumers, they also increase customer loyalty. Yet they’re not a particularly new idea. The idea of sharing voice and text messages across a number of devices is well-established in the corporate world, with many mobile phone users billed on the same account. What’s changed is the increased focus on consumers - and a move towards multiple devices rather than multiple users.

Tekelec is expecting a sharp uptake in these shared data plans; a recent project with Infonetics Research forecast that the number of mobile broadband devices sold globally on shared data plans would grow from 14.5 million in 2011 to 186.8 million in 2015, the equivalent of 89% growth every year.

However, there’s more to the shared data plan than a clever tariff. According to Randy Fuller, network operators also need to think about data management... and that brought up the topic of net neutrality.

We also talked about 4G LTE in the UK - and whether or not it’ll answer the demand for data - before looking into a future where devices will automatically switch between a variety of networks.

“You’re going to use multiple different types of networks without even knowing about it”, said Randy. “In five years’ time what’ll happen is that there’ll be more ubiquitous coverage but the speed, availability, all that stuff will change from place to place. And the big, big change is you’re not going to have to know about that. A lot of mobile operators are working on what they call heterogeneous networks, lots of different kinds of networks, and being able to get you on and get your device off that network without you having to worry about it or do anything.”

You can listen to the full 20-minute interview with Randy Fuller of Tekelec on our website or by downloading the MP3 file. Alternatively, subscribe to all our podcasts via iTunes or on our RSS feed.
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Categories: Networks and operators, OpinionNumber of views: 10075

Tags: 4g internet data tariff tekelec

1 comments on article "Shared data tariffs, bill shock, net neutrality and mobile traffic management"

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Rachel

11/30/2011 7:53 PM

The solution for this bill shock problem already exists...why wait for cell phone companies to take the initiative to send correct usage alerts? I use Telicost-Lite, which gives me the alerts I need to stay on track with voice, data, SMS and roaming. And, it’s a free download for Android, iPhone and Blackberry.

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Opinion Articles

The art of accessory sales is changing

Mark Bridge writes:

We're told it's not merely 'sales'. No, it's an art. "The art of selling". And with over 4 million hits on Google, you could easily argue that the art of selling is more popular than painting.

The same goes for the two sub-categories of cross-selling and up-selling. They're arts as well, you know. Mystic and creative disciplines...

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Secure mobile phone calls explained

The security of 3G and GSM mobile phone calls has been questioned recently. Mark Bridge spoke to Dr Simon Bransfield-Garth, Chief Executive of Cellcrypt, at Mobile World Congress to find out how real the problems are. The interview was included in our podcast on 19th February 2010; here's an edited transcript of the interview:

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‘The App is Dead. Long Live the App’ at Mobile World Congress

James Rosewell writes:

Apps (defined as games, information services, social networking video and web content among other things) dominated MWC10 with debate focused on the provision of radio network capacity to support them, the technologies used to create them and the methods for Mobile Network Operators (MNOs) to monetise them. Given the fragmentation in technology and the investment needed from MNOs to provide capacity coupled with a lack of reward for MNOs, we would be forgiven for thinking the App as we know it is not long for this world. However new technologies offering broader platform support, plus smart network investment coupled with new business models, mean the App will evolve and come of age ready for 2011.

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Windows Phone 7 Series at Mobile World Congress

Mark Bridge writes:

We queued in the rain outside the Catalonia Barcelona Plaza hotel. We sat on the floor in a basement room. And we watched on TV as Steve Ballmer announced Windows Phone 7 Series.

The life of a reporter is not a glamorous one.

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HTC Smart could start a smartphone price war

Mark Bridge writes:

I’ve previously talked about a report from 2009 which warned how touch-screen phones that weren’t true smartphones were pushing down ARPU. Consumers thought they were buying something that was relatively advanced but were being seduced by form over function.

This week HTC stepped in to the arena with the HTC Smart, described by HTC's Peter Chou as "a more-affordable smartphone". Although it may not fit everyone’s definition of a smartphone, it certainly ticks most of the boxes. It has an open operating system, Qualcomm’s Brew platform, which has over 18,000 available applications and has been installed on over 1200 handset models worldwide.

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