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inCode predicts further deterioration in mobile service quality
 
Indiantelevision.com Team

(22 december 2007 3:25 pm)

 

MUMBAI: inCode, the global wireless business and technology consulting firm acquired by VeriSign, has come up with its 'Top 10 predictions' for the wireless world for the year 2008. Its predictions cover major trends ranging from who will win the communication standard wars, what role Google will play in the wireless world after January's spectrum auction, and whether or not consumers will finally open up to digital content and mobile advertising.

 

"The coming year is going to be incredibly important for the wireless industry, as new business models begin to take shape," said inCode vice president, communications consulting, Jorge Fuenzalida. "Beginning with the spectrum auction in January, to the continuing battle between fourth-generation (4G) technologies LTE and WiMAX, wireless will look significantly different in several critical ways one year from today," he added.

 

One important prediction of inCode is that mobile service quality will continue to deteriorate for the eighth year in a row. Even with the 3G technology, there will be more dropped calls, poorer quality calls and more failed call set-ups for the user. Thus, there will be a growing market for more robust phones with a single band, fewer features and longer battery life for people who are dependent on a reliable phone service.

The 2008 top 10 predictions for the global wireless market are:

  • RF technology convergence will finally start to materialise. The battle between LTE, HSPA and WiMAX will not occur since the three technologies are in very different stages of maturity.
  • A new wholesale carrier will be born. The 700MHz spectrum auction in the US will present a large opportunity for the emergence of a new wholesale carrier that focuses on being the most cost-effective player while avoiding the retail game. The wholesale carrier model will be driven by companies such as Google and will operate at a lower cost per minute.
  • Open access and strong competition in the chipset industry will push device and handset vendors to bypass carriers and build closer ties with the end user.
  • Quality of service differentiation begins this year. Service stacking and quality will become very important. When the number of players decreases, options on offerings increase - and carriers will change focus from expanding the network to optimising the customer experience.
  • Wireless broadband is more about speed than mobility. It will continue to be the fastest-growing service since prepaid and SMS. Customers love it, but since it is priced and sold as a DSL service, there is very little focus on the strength of the cellular technology. Next year will be a breakthrough for broadband - HSPA will be the dominant technology in this space until LTE is commercially viable, and it will be increasingly embedded in laptops while WiMAX will be embedded in certain consumer devices. This trend will also boost the laptop market as they will be better connected than ever before.
  • P2P - from theft model to business model. Long used for pirating files, US distributors follow the UK's lead and begin to utilise next-generation, secure and DRM-protected P2P for content distribution. Media delivered via IP/Internet/broadband will completely blow apart the walled garden relationships created over the years.
  • In-building will play a large part in carriers' strategy to fill in coverage gaps, driving increased return on investment (ROI) for enterprises and average revenue per user (ARPU) for carriers. Carriers will follow an 'inside out' strategy, enabling coverage that focuses on where the most lucrative customers are, instead of blindly blanketing a city with coverage.
  • As the carriers roll out 3G infrastructure and continue to introduce bandwidth-intensive data service offerings, the backhaul portion of their networks must be optimised and/or upgraded to ensure that the service quality is not compromised.
  • Mobile advertising gains steam. Advertising will become a significant event, sponsoring content and driving innovation - so much so that carriers will no longer look at their business cases on a strictly subscription basis.
  • Mobile device security. The significance and sensitivity of data on devices will continue to rise with awareness of and need for mobile device security. This will therefore create and drive a new market for mobile device security software as well as mobile device management software and services.

These predictions are being designed every year by inCode since 2003 to help wireless industry players, partners and consumers better plan for the coming year. VeriSign claims that inCode's predictions have proved more than 80 per cent accurate.

 
 
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