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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

Hotel phone charges demonstrate the value of packing your mobile

Mark Bridge writes:

I like hotels. Free biscuits in your room and all the portions of UHT milk you can drink. But the phone calls... that's a different story.

Dearie me, you're paying for that hospitality tray when you pick up the phone.

Author: The Fonecast
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Mark Bridge writes:

A Charlie Chaplin DVD includes an image of a woman using a mobile phone in 1928.

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Most Sat-Nav applications are now obtained via the Application Store used on the mobile phone. Navigon have gone so far as to remove access to their application via any other route. Application Stores are now the only choice. This move to a platform-specific sales model is a massive mistake.

Author: The Fonecast
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Come on, Steve Jobs – why don't you attack a few more mobile companies?

Mark Bridge writes:

Mark Zuckerberg's girlfriend breaks up with him acrimoniously. So off he goes and creates Facebook. Yes, there's nothing like an insult to fire up the creativity. Well, that's certainly what the plot of The Social Network would like you to think.

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Author: The Fonecast
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Mark Bridge writes:

Wouldn't it be great if mobile customers loved their networks so much that they'd fight for them?  Ofcom would be inundated with complaints from O2 users about its decision not to allow GSM frequencies to be used for 3G services. Vodafone customers would demand that Nokia pre-loaded the N8 with a Vodafone 360 application. Orange users would be sending petitions to radio stations, asking them to implement HD Voice on phone-ins. And giffgaff users would take to online forums to defend the service they receive.

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