Thursday, May 1, 2008

Dumb Pipe Isn't a Bad Thing

The unique contribution any communications network plays in a value chain is precisely the "pipe."

That doesn't mean "just" pipe, but connectivity is fundamentally important. Consider a Strategy Analytics forecast of global consumer and advertiser spend on mobile media and associated transport.

Strategy Analytics predicts mobile media spending will rise from just under $47 billion at the end of 2007 to almost $102 billion by 2012, driven by access to web services, video and music.

But note the contribution made by "data transport," which is the "dumb pipe" part of the business. Premium services are important, no doubt. But access is far from unimportant.

Over the same period the population of unique cellular users actively using mobile content services will more than double from 406 million to over 870 million.

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