Why Tablets are Important for Fixed Network Service Providers

Tablets are important devices, for virtually all fixed network service providers. Though mobile service providers will do their best to convince users that tablets are more useful when they have their own mobile connections (Verizon Wireless “Share Everything” plans are an example), most people have learned to save money on their mobile data plans by using Wi-Fi for tablet, smart phone, iPod touch and other Internet-capable devices.

That’s a key business development for fixed network Internet service providers. It means the value of a fixed connection now is higher than it used to be, when just one or two PCs were connected. Now the single fixed connection supports multiple users and multiple devices.

Also, given the pricing of bundles, it often makes sense to buy video entertainment plus broadband, instead of only broadband access. Even when this is not the choice a consumer makes, it is easier to justify buying broadband because it enables use of PCs, tablets, smart phones, game consoles, TVs and other devices.

Depending on the number of users or devices that can be supported by a single fixed broadband connection, the justification for buying broadband never has been higher. Where once it only made sense to buy broadband access if a home used computers and the Internet, now it makes more sense to buy broadband because tablets, smart phones and other devices also can take advantage of the single connection.

In fact, the increase in number of devices using the home networks is one reason why “median monthly usage” (half of consumers use more, half use less) on North America’s fixed access networks has increased from 10.3  GB to 16.8 GB in the second half of 2012, some might argue.

Over the same period, “mean monthly usage” (arithmetic average)  grew by over 70 percent increasing  to 51.3 GB from 32.1 GB. Growing subscriber consumption is not limited to North America or fixed networks, either.

Relatively slow growth of mobile data consumption probably is a direct result of the shift to offloading of mobile data demand to the fixed network.

In North America, monthly usage on mobile networks has experienced only minor growth, Sandvine says.  In the second half of 2012, Sandvine has observed mean monthly usage increasing moderately from 312.8 MB to 317.2 MB.