Gap Between Bandwidth and Revenue is Key Wireless Business Challenge

In a nutshell, the gap between bandwidth consumption and revenue is the key problem faced by mobile service providers. The reason is simple enough. Everybody agrees the future industry revenue model will be driven by data services, not voice.

And though service providers will sell a mix of simple connectivity services and other value-added features and services, access will remain a huge, perhaps the biggest single revenue source, even in the future.

Given user resistance to paying higher prices for bandwidth, service providers will struggle to close the gap between rising supply of bandwidth and slower-growing ability to price the additional capabilities in any linear fashion.

That is one reason why offloading access from the mobile networks to the fixed landline network is so important, and why a developing rationale for landline network services providers is "wireless offload." Especially as high-bandwidth video becomes a bigger part of the end user demand, it will be necessary to offload as much of the load as possible to fixed networks.