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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: 9368

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

T-Mobile, the Information Commissioner's Office and the stolen customer information

Mark Bridge writes:

The Information Commissioner's Office - the UK authority that upholds information rights - has published details of its recent case involving T-Mobile. Contact information and expiry dates for minimum-term contracts were being sold to third parties, enabling mobile phone dealers to target potential customers who were in a position to sign a new contract... which could earn the dealer hundreds of pounds for a new connection.

Author: The Fonecast
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This week at The Fonecast: 11th June 2011

Mark Bridge writes:

On Monday there seemed to be a dearth of mobile news as the industry held its breath and waited for Steve Jobs to speak.

Why there was quite so much breath-holding beats me, because Apple had already told us what the announcement was going to cover. Anyway, we learned about iOS 5, which will arrive in the autumn, and its 200 new features – including a new messaging service called iMessage.

Author: The Fonecast
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Interview with Todd Levy about the family-friendly BloomWorlds Android app store

Mark Bridge writes:

Today's best-known stores mobile application stores are the Apple App Store and the Android Market, although independent app stores including GetJar and Handango have been with us for much longer.

And now there's another independent application store preparing to launch. The company behind it is called BloomWorlds – and I spoke to co-founder Todd R Levy for this week's podcast feature.

Author: The Fonecast
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Soon, no-one will care about mobile phone numbers - and the networks will love it

Mark Bridge writes:

Watch almost any American TV show from the 1960s - I'd recommend a good police procedural - and at some point after a few episodes there'll be a scene in a restaurant. One of the main characters will be dining and their meal will be interrupted by a waiter bringing a telephone to the table. The phone will probably have an implausibly long cable, although there may be a telephone socket nearby.

Author: The Fonecast
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Apple iMessage isn't going to kill SMS

Mark Bridge writes:

Apple iMessage is going to kill SMS. And then, when it's killed it, it'll dance on its grave. Anticlockwise. Whilst mocking every mobile network in the world.

Author: The Fonecast
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