Verizon typifies MNOs' promise, plight

Dana Cooperson/Ovum
07 Jul 2011
00:00

Last month, serendipity juxtaposed two events in the Boston area: Informa’s North American Broadband Traffic Management (BBTM) conference and Verizon’s analyst preview of its LTE Experience Center (VEC).

The first event pinpointed the possibilities and pitfalls of “optimizing and monetizing the mobile broadband experience for North American consumers.”

At the second event, Verizon showcased its LTE innovation process and demonstrated a wide range of LTE-enabled services. BBTM illustrated how policy management and charging can combine to help MNOs more cost-effectively manage network capacity while creating novel services that generate revenue and improve customer experience.

Verizon’s presentation highlighted a range of LTE-driven opportunities but also exposed the challenges that even innovative MNOs face in bolstering their brands in an increasingly complex ICT value chain.

At BBTM, presenters focused on solutions for the mobile broadband conundrum that traffic growth does not automatically lead to revenue growth. Specifically, how can telcos employ innovative strategies and tools, including policy and charging mechanisms, to rein in costs while improving revenues?

The more the telcos act rather than react, the better their chances of success: as outlined in Ovum’s 2020 report series, telcos are in real danger of being marginalized as uncool “bit pipe providers” between the cool devices and the equally cool applications.

But will regulators limit telcos’ options in unproductive ways? Jeff Eisenach from Navigant Economics noted that the “Internet ecosystem” comprises applications, content, devices, and communications and that the communications piece should not be singled out for special regulation.

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