Time for cellcos to cash in on content delivery

Staff writer
11 Feb 2014

One of the truisms of the LTE age is that more and more mobile customers are using smartphones and tablets to access online content – especially video. But while that’s generally accepted wisdom, it’s easy to miss the full implication of those trends on operator networks, their ability to deliver content to customers, and – perhaps more importantly -- their ability to monetize it. Operators whose networks aren't optimized for content delivery risk being overwhelmed by the deluge of demand.

The implications become clear once you start looking at the actual numbers for both consumer trends and behaviors when it comes to video consumption and mobile traffic, says Carlos Gonzalez, global head of content delivery network sales at Ericsson.

“According to our recent ConsumerLab TV & Media report, for example, 72% of consumers use mobile devices (smartphone, tablet or laptop) at least weekly for video viewing, and 42% do this outside the home,” says Gonzalez. “So mobile devices are taking up an increasing share of TV and video viewing.”

Gonzalez adds that this is not happening at the expense of traditional TV, but rather alongside it.

“We are increasingly seeing TV as a multitasking activity – 75% of people watching TV are also using mobile devices,” he says. “What’s more, one out of three are discussing what they are watching on social networks.”

In addition to becoming a multitasking activity, it’s also becoming a multiscreen activity for consumers, notes Eugene Sarmiento, Ericsson’s head of media delivery sales for APAC.

“Globally, there’s an exponential curve when it comes to multiscreen TV subscriptions – what we’ve seen is growth from 95 million subscriptions to over 500 million subscriptions,” Sarmiento says. “And half of that will actually be in APAC.”

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