In a significant “u turn,” telecom commissioner Neelie Kroes seemingly has backed off a plan to increase the discounts offered to third parties who buy wholesale access from incumbent European Union service providers.
That is at least mildly surprising for a few reasons. At least historically, European Commission countries have favored robust wholesale leasing policies, at least in part because, unlike the situation in North America, where two facilities-based broadband access networks exist in most markets, it was expected that only the incumbent network would be widely available.
In order to reach the EU's Digital Agenda goal of at least half of EU residents able to access broadband at 100Mbps or more by 2020, the EC has been looking at how the regulatory environment can support and stimulate investment in next-generation networks.
Tuesday, July 17, 2012
EC Makes Major Regulatory Shift
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Global Telecom Industry Has Made a Historic Leap in Serving People in Developing Regions
A high-level study sponsored by Alcatel-Lucent and conducted by the ENPC (Ecole des Ponts ParisTech) illustrates an important and historic change in global communications, especially the decades-long effort to figure out how to provide communications to billions of human beings who had not previously “made a phone call,” much less “used the Internet.”
In recent years, the concern has shifted dramatically to mobile service for the “next billion” people, or Internet for the next billion people, where in the 1960s and 1970s the issue was providing “phone service” to the “next billion” users in developing countries.
What has gone somewhat unnoticed is the truly stunning progress, globally, in getting communications services to users in developing regions, where once policy makers struggled to anticipate how that could be done with legacy technology, namely fixed networks.
Without too much fanfare, the answers have emerged organically from use of mobile and Internet technologies.
In recent years, the concern has shifted dramatically to mobile service for the “next billion” people, or Internet for the next billion people, where in the 1960s and 1970s the issue was providing “phone service” to the “next billion” users in developing countries.
What has gone somewhat unnoticed is the truly stunning progress, globally, in getting communications services to users in developing regions, where once policy makers struggled to anticipate how that could be done with legacy technology, namely fixed networks.
Without too much fanfare, the answers have emerged organically from use of mobile and Internet technologies.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
After 20 Years, Is it Time to Revisit Cable TV Regulation?
The Cable_Communications_Act_of_1984 was a milestone for the U.S. cable industry, ushering in a more-deregulated environment about the time that satellite delivery was about to transform the business from a "signal importation" business to an "add voice" business.
The subsequent Cable Act of 1992, on the other hand, represented a re-regulation of the industry in many respects, including pricing for the "basic" tier of service. Not surprisingly, the industry mainstay became the "expanded basic" tier.
But it has been two decades since that last major change in regulation of cable TV, and the industry has vastly changed since 1992. So the fact that the Senate Commerce Committee is holding new hearings on the 1992 Cable Act suggests a possible change could be coming.
"Re-transmission consent" will be one of the key issues on the table, according to Multichannel News. In part, that might be something of a response to the wider question of programming costs overall, as well as business relationships between distributors and content owners.
"We can't look to the future of video without evaluating the Cable Act's impact on the modern television marketplace and whether the legislation has achieved Congress' goals," said Chairman Jay Rockefeller (D-W.Va.)
In many ways, the Cable Act of 1992 represented the most-recent oscillation in cable TV policy, which has swung between periods of greater regulation and periods of less regulation. Based only on history, one might suggest that since the 1992 policy swing was back towards "more regulation," the next swing could be expected to be in the direction of "less regulation."
That would likely be unwelcome for TV broadcasters, among others. But it is not unusual for hearings to be held, with little substantive policy or statute changes. On the other hand, it has been long enough since that last adjustment that some change should be expected, eventually.
The difference between a cable company and a telco long ago ceased to be significant in any way except the ways those industries are regulated, for example. And network-delivered entertainment video is a business that arguably faces growing threats from outside and greater tensions inside the ecosystem.
Normally that means attackers and defenders alike will increase their agitation for "changes" in regulatory schemes.
The subsequent Cable Act of 1992, on the other hand, represented a re-regulation of the industry in many respects, including pricing for the "basic" tier of service. Not surprisingly, the industry mainstay became the "expanded basic" tier.
But it has been two decades since that last major change in regulation of cable TV, and the industry has vastly changed since 1992. So the fact that the Senate Commerce Committee is holding new hearings on the 1992 Cable Act suggests a possible change could be coming.
"Re-transmission consent" will be one of the key issues on the table, according to Multichannel News. In part, that might be something of a response to the wider question of programming costs overall, as well as business relationships between distributors and content owners.
"We can't look to the future of video without evaluating the Cable Act's impact on the modern television marketplace and whether the legislation has achieved Congress' goals," said Chairman Jay Rockefeller (D-W.Va.)
In many ways, the Cable Act of 1992 represented the most-recent oscillation in cable TV policy, which has swung between periods of greater regulation and periods of less regulation. Based only on history, one might suggest that since the 1992 policy swing was back towards "more regulation," the next swing could be expected to be in the direction of "less regulation."
That would likely be unwelcome for TV broadcasters, among others. But it is not unusual for hearings to be held, with little substantive policy or statute changes. On the other hand, it has been long enough since that last adjustment that some change should be expected, eventually.
The difference between a cable company and a telco long ago ceased to be significant in any way except the ways those industries are regulated, for example. And network-delivered entertainment video is a business that arguably faces growing threats from outside and greater tensions inside the ecosystem.
Normally that means attackers and defenders alike will increase their agitation for "changes" in regulatory schemes.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
"Interactive TV" is Here, But Uses a Mobile
Video entertainment executives in the 1980s were touting the power of "interactive TV" as a new dimension of the TV experience. Not too much came of the effort. But as it turns out, "interactive TV" now has become mainstream, but using smart phones, and to some growing extent tablets, rather than the TV remote, a cable box or other appliance.
Half of all adult cell phone owners now incorporate their mobile devices into their television watching experiences, according to the Pew Research Center's Internet & American Life Project.
Such “connected viewers” used their cell phones for a wide range of activities during the 30 days preceding our April 2012 survey:
Some 38 percent of cell owners used their phone to keep themselves occupied during commercials or breaks in something they were watching. Another 23 percent used their phone to exchange text messages with someone else who was watching the same program in a different location.
About 22 percent used their phone to check whether something they heard on television was true, while 20 percent used their phone to visit a website that was mentioned on television.
Also, 11 percent used their phone to see what other people were saying online about a program they were watching and 11 percent posted their own comments online about a program they were watching using their mobile phone.
Taken together, 52 percent of all cell owners are “connected viewers," meaning they use their phones while watching television for at least one of these reasons.
So the "interactive TV" revolution finally has arrived. It's just that it turns out the mobile phone and tablet are the vehicles people are choosing to provide their own interactivity.
Half of all adult cell phone owners now incorporate their mobile devices into their television watching experiences, according to the Pew Research Center's Internet & American Life Project.
Such “connected viewers” used their cell phones for a wide range of activities during the 30 days preceding our April 2012 survey:
Some 38 percent of cell owners used their phone to keep themselves occupied during commercials or breaks in something they were watching. Another 23 percent used their phone to exchange text messages with someone else who was watching the same program in a different location.
About 22 percent used their phone to check whether something they heard on television was true, while 20 percent used their phone to visit a website that was mentioned on television.
Also, 11 percent used their phone to see what other people were saying online about a program they were watching and 11 percent posted their own comments online about a program they were watching using their mobile phone.
Taken together, 52 percent of all cell owners are “connected viewers," meaning they use their phones while watching television for at least one of these reasons.
So the "interactive TV" revolution finally has arrived. It's just that it turns out the mobile phone and tablet are the vehicles people are choosing to provide their own interactivity.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
77% of Consumers Want a Smart Phone With 4.5-Inch or Larger Screens?
Consumers are demanding larger smartphone screen sizes. A recent survey suggests 77 percent of surveyed consumers prefer a device with a 4.5-inch or larger display, T-Mobile USA says.That is one reason why T-Mobile USA is launching the Galaxy Note, which many refer to as a "tablet/smart phone."
With popular tablets now being sold in a seven-inch screen size, the 5.3-inch Galaxy Note screen puts the device somewhere in between a seven-inch tablet and a more-typical 3.5-inch smart phone screen.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Small Business Execs Will Stay Connected Using Mobile, IF They Vacation in 2012
According to the latest Manta survey of over 1200 small business owners, nearly half of those polled say they won’t have time to take a vacation this summer and almost 60 percent say they’re working more this year than they did last year.
Some 70 percent of small businesses surveyed also are not planning to hire any new employees during the summer months (a significant drop since the 2011 poll that showed 57 percent of small business owners were planning to hire).
But those owners and executives that are planning to get away say they will still be working, thanks to their mobile devises.
Some 70 percent of small business owners will be checking their email/work documents remotely while on vacation, with 60 percent saying they are able to enjoy their vacation more because of being able to monitor their businesses via their mobile device.
Some 70 percent of small businesses surveyed also are not planning to hire any new employees during the summer months (a significant drop since the 2011 poll that showed 57 percent of small business owners were planning to hire).
But those owners and executives that are planning to get away say they will still be working, thanks to their mobile devises.
Some 70 percent of small business owners will be checking their email/work documents remotely while on vacation, with 60 percent saying they are able to enjoy their vacation more because of being able to monitor their businesses via their mobile device.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Sprint Makes MVNO Business Easier
Sprint's new Sprint Single Source Enablement effort is intended to simplify the process of becoming a mobile virtual network operator, allowing "anyone from entrepreneurs to enterprises deliver their own branded wireless service with as much or as little investment as they prefer," Sprint says.
Single Source Enablement can cover all systems, processes, customer care, online Web enablement, and the warehousing and distribution of devices so an MVNO can focus almost solely on acquiring customers.
The model can be customized to meet each MVNO’s unique business needs. Specialized customer loyalty programs and other value-added products can be supported under this model, as well.
The Sprint move illustrates a key trend within the global mobile communications business, namely the growing range of business and revenue models, with some operators emphasizing traditional retail revenues, while others move to more wholesale-centric models. Sprint is doing a bit of both, though Sprint continues to make most of its money from retail operations.
One clear conclusion to be drawn from the last decade of change in the telecommunications business is that service provider strategies, which once were quite homogenous, have become more dissimilar. Some contestants have expanded outside their “home” regions, while others have not.
Some have expanded into wireless, while others have not. Many operate their own video services, while others rely on third party partners. Some want to operate their own application stores, others would not attempt to do so.
Some service providers focus exclusively on business customers, others are more consumer focused. And those differences likely will grow, in the future.
Telecommunications service providers need to adapt their business models to a wider ecosystem and make firm decisions about which revenue sources they are going to target within that broader environment, consultants at Ernst & Young have argued.
Among the changes Ernst & Young expects to see, by about 2020, is a broader divergence in business strategies, based on reliance on “wholesale” or “retail” operations.
Today, a typical “telco” service provider has a split of revenues roughly coming half from the consumer segment, with the rest divided between business and wholesale operations.
This split could evolve by 2020 into a “smart” operator with revenues dominated by products sold to retail customers or a “lean” model rebalanced toward wholesale service provision. That will, and should, worry most executives.
The “lean” or “wholesale” model assumes a service provider becomes more a “pipe or access” provider, and less a direct retail provider of services. But it also assumes that more of the retail competition will occur between providers who source their network services from a “neutral” third party.
Current regulatory models in Singapore, Malaysia, Australia and New Zealand are examples of that approach, where all fixed network contestants will buy network services from a neutral third party.
The more speculative approach, for the moment, is an increase in network services sales to application and service providers who use network access and other services to create their own products.
Though many application providers will resist the notion, video entertainment services might well want, at some point, to source network services in ways that improve end user quality of experience, for example.
“In general, telecoms revenue mix forecasts point to an increasing shift toward wholesale,” Ernst & Young argues.
That “wholesale” emphasis will not so much resemble traditional wholesale (carriers buying and selling access or capacity to each other) so much as enterprise sales, where capacity is sold to businesses who create products using that bandwidth.
Some examples might be sales of cloud computing services to application providers, or bandwidth products used directly by application and service providers to create streaming or other real-time services, for example. Machine-to-machine communications services provide another example.
Some service providers also will find that opportunities are greater in the business customer segment than in the consumer segment.
Single Source Enablement can cover all systems, processes, customer care, online Web enablement, and the warehousing and distribution of devices so an MVNO can focus almost solely on acquiring customers.
The model can be customized to meet each MVNO’s unique business needs. Specialized customer loyalty programs and other value-added products can be supported under this model, as well.
The Sprint move illustrates a key trend within the global mobile communications business, namely the growing range of business and revenue models, with some operators emphasizing traditional retail revenues, while others move to more wholesale-centric models. Sprint is doing a bit of both, though Sprint continues to make most of its money from retail operations.
One clear conclusion to be drawn from the last decade of change in the telecommunications business is that service provider strategies, which once were quite homogenous, have become more dissimilar. Some contestants have expanded outside their “home” regions, while others have not.
Some have expanded into wireless, while others have not. Many operate their own video services, while others rely on third party partners. Some want to operate their own application stores, others would not attempt to do so.
Some service providers focus exclusively on business customers, others are more consumer focused. And those differences likely will grow, in the future.
Telecommunications service providers need to adapt their business models to a wider ecosystem and make firm decisions about which revenue sources they are going to target within that broader environment, consultants at Ernst & Young have argued.
Among the changes Ernst & Young expects to see, by about 2020, is a broader divergence in business strategies, based on reliance on “wholesale” or “retail” operations.
Today, a typical “telco” service provider has a split of revenues roughly coming half from the consumer segment, with the rest divided between business and wholesale operations.
This split could evolve by 2020 into a “smart” operator with revenues dominated by products sold to retail customers or a “lean” model rebalanced toward wholesale service provision. That will, and should, worry most executives.
The “lean” or “wholesale” model assumes a service provider becomes more a “pipe or access” provider, and less a direct retail provider of services. But it also assumes that more of the retail competition will occur between providers who source their network services from a “neutral” third party.
Current regulatory models in Singapore, Malaysia, Australia and New Zealand are examples of that approach, where all fixed network contestants will buy network services from a neutral third party.
The more speculative approach, for the moment, is an increase in network services sales to application and service providers who use network access and other services to create their own products.
Though many application providers will resist the notion, video entertainment services might well want, at some point, to source network services in ways that improve end user quality of experience, for example.
“In general, telecoms revenue mix forecasts point to an increasing shift toward wholesale,” Ernst & Young argues.
That “wholesale” emphasis will not so much resemble traditional wholesale (carriers buying and selling access or capacity to each other) so much as enterprise sales, where capacity is sold to businesses who create products using that bandwidth.
Some examples might be sales of cloud computing services to application providers, or bandwidth products used directly by application and service providers to create streaming or other real-time services, for example. Machine-to-machine communications services provide another example.
Some service providers also will find that opportunities are greater in the business customer segment than in the consumer segment.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Some Mobile Service Providers Will Face More Challenges in Voice, Text, Than Others
What is true of global aggregate performance in the telecom business might not be so true for discrete service providers in specific markets. So it appears that prospects for voice and messaging revenue might be robust in some markets, even if that is not the case in other regions, or for the global market as a whole, an analysis by Infonetics Research might suggest.
Despite the popularity of over-the-top messaging applications like Apple’s iMessage and WhatsApp, Infonetics Research predicts that text messaging (short message service, or SMS) revenue will grow, on a global basis, every year from 2012 to 2016, delivering a cumulative $1 trillion in operator revenue during those five years.
Over that same period, voice revenue will decline slightly,, Infonetics Research predicts. Voice revenue dipped 0.8 percent worldwide in 2011, despite the growing use of voice services in China, for example.
On a global basis, Infonetics expects mobile service providers will see a six-percent increase overall in revenue from mobile voice, mobile broadband, and mobile messaging services in 2012. The issue is the specific contribution from each of those services, in each country and market.
The highest growth in 2012 will come from Asia Pacific and Latin America regions, while the Europe, Middle East and Africa region is expected to see a slight decline.
Globally, the mobile services market is forecast to grow to $976 billion by 2016, with the bulk of the growth coming from mobile broadband services, as you might expect.
Mobile data (text messaging, multimedia messaging, and mobile broadband) service revenue rose in every region in 2011, driven by an increase in smart phone usage, though the specific contributions made by messaging and mobile broadband are important.
Mobile broadband subscribers will grow from 15 percent to nearly 40 percent of all mobile subscribers between 2011 and 2016, Infonetics Research suggests.
Despite the popularity of over-the-top messaging applications like Apple’s iMessage and WhatsApp, Infonetics Research predicts that text messaging (short message service, or SMS) revenue will grow, on a global basis, every year from 2012 to 2016, delivering a cumulative $1 trillion in operator revenue during those five years.
Over that same period, voice revenue will decline slightly,, Infonetics Research predicts. Voice revenue dipped 0.8 percent worldwide in 2011, despite the growing use of voice services in China, for example.
On a global basis, Infonetics expects mobile service providers will see a six-percent increase overall in revenue from mobile voice, mobile broadband, and mobile messaging services in 2012. The issue is the specific contribution from each of those services, in each country and market.
The highest growth in 2012 will come from Asia Pacific and Latin America regions, while the Europe, Middle East and Africa region is expected to see a slight decline.
Globally, the mobile services market is forecast to grow to $976 billion by 2016, with the bulk of the growth coming from mobile broadband services, as you might expect.
Mobile data (text messaging, multimedia messaging, and mobile broadband) service revenue rose in every region in 2011, driven by an increase in smart phone usage, though the specific contributions made by messaging and mobile broadband are important.
Mobile broadband subscribers will grow from 15 percent to nearly 40 percent of all mobile subscribers between 2011 and 2016, Infonetics Research suggests.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
One Mobile Operator Apps Consortium Dies, Another Gets Ready to Launch
One very large mobile service provider effort to create a stronger Web applications business has given up the chase, while another more-focused consortium is getting ready to launch.
The Wholesale Applications Community, a large consortium of leading GSM-based mobile service providers from around the world, has decided to sell off it sassets and merge the remainder of the effort into a parallel GSM Association effort.
Separately, AT&T, Deutsche Telekom, Vodafone Group, Verizon Wireless and Telefónica, for example, separately are setting up an interoperable way of allowing all of their customers to buy any mobile application available in any member application store.
As often is the case, very-large consortia can become unwieldy, especially when time to market is a concern, as arguably is the case for any mobile service provider effort to create a viable app store effort able to compete with the likes of Apple and Google.
Apigee, a leading provider of API products and services, has acquired the technology assets of WAC, principally a carrier billing programming interface. for in-app purchases.
WAC was started in 2010 and was backed by 60 operators and suppliers, including Samsung, Intel, Nokia, Ericsson, Qualcomm, Fujitisu, NEC, Hewlett-Packard, HTC, LG and Research in Motion.
The objective was to create a common standard for Web applications usable by all GSM service providers, rather than common mobile applications in a direct sense.
As you might guess, the initiative was intended to create more value for mobile service providers in a world where applications were viewed as rapidly consolidating in the ecosystems run by Apple and Google.
You might say the results have been unspectacular, but that might not be surprising to industry watchers who have been saying the odds of success were high to begin with. The global telecom industry has had a rather mixed record of success creating key standards that drive a significant amount of market success.
ncluding the building of substantial third party and “owned” applications that can use the APIs.
The Wholesale Applications Community, a large consortium of leading GSM-based mobile service providers from around the world, has decided to sell off it sassets and merge the remainder of the effort into a parallel GSM Association effort.
Separately, AT&T, Deutsche Telekom, Vodafone Group, Verizon Wireless and Telefónica, for example, separately are setting up an interoperable way of allowing all of their customers to buy any mobile application available in any member application store.
As often is the case, very-large consortia can become unwieldy, especially when time to market is a concern, as arguably is the case for any mobile service provider effort to create a viable app store effort able to compete with the likes of Apple and Google.
Apigee, a leading provider of API products and services, has acquired the technology assets of WAC, principally a carrier billing programming interface. for in-app purchases.
WAC was started in 2010 and was backed by 60 operators and suppliers, including Samsung, Intel, Nokia, Ericsson, Qualcomm, Fujitisu, NEC, Hewlett-Packard, HTC, LG and Research in Motion.
The objective was to create a common standard for Web applications usable by all GSM service providers, rather than common mobile applications in a direct sense.
As you might guess, the initiative was intended to create more value for mobile service providers in a world where applications were viewed as rapidly consolidating in the ecosystems run by Apple and Google.
You might say the results have been unspectacular, but that might not be surprising to industry watchers who have been saying the odds of success were high to begin with. The global telecom industry has had a rather mixed record of success creating key standards that drive a significant amount of market success.
ncluding the building of substantial third party and “owned” applications that can use the APIs.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Monday, July 16, 2012
55% of U.S. Smart Phone Owners Compare Prices Inside Stores, Study Finds
Some 55 percent of smart phone owners said they’ve used a mobile device to compare prices between retailers, while inside retail stores, according to Emphatica.
Thirty-four percent said they’ve scanned a QR code, and 27 percent have read online reviews from their devices before making purchase decisions.
Thirty-four percent said they’ve scanned a QR code, and 27 percent have read online reviews from their devices before making purchase decisions.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Carrier Ethernet Growing at 17% Annual Rate
U.S. enterprises and consumers are expected to spend more than $47 billion over the next five years on Ethernet services provided by carriers, according to a new market research study from The Insight Research Corporation.
With metro-area and wide-area Ethernet services readily available from virtually all major data service providers, industry revenue is expected to grow from nearly $5 billion in 2012 to reach just over $11 billion by 2017.
However, year over year spending growth is expected to gradually stall and by 2017 the annual revenue growth rate will be half of what it is today, Insight Research says. Growth is generally moderating gradually, for a number of reasons.
For starters, the installed base of revenue is growing larger, so it is harder to maintain higher growth rates. Also, at some point, most U.S. cell sites will have been converted to carrier Ethernet.
Pricing pressures will continue as competition remains significant in the market, and as Ethernet displaces most private line and frame relay services.
According to the study, Ethernet's central driver continues to be its ability to meet seemingly endlessly growing bandwidth demands at lower cost and with greater flexibility than competing services.
A major growth driver in years past had been the large-scale migration of wireless backhaul cell sites from TDM to Ethernet, and though still a contributory growth factor, backhaul growth will start to moderate as LTE deployments are completed.
"Wireless backhaul had been a major factor in this fast-growing telecommunications services sector, but with much of the conversion of TDM to Ethernet completed, we are forecasting that spending on Ethernet will moderate," says Robert Rosenberg, president of Insight Research. "Over the five year forecast period we project a compounded annual revenue growth rate of 17 percent, with growth slowing by 2016 to be more in the range of 12 to 15 percent.”
With metro-area and wide-area Ethernet services readily available from virtually all major data service providers, industry revenue is expected to grow from nearly $5 billion in 2012 to reach just over $11 billion by 2017.
However, year over year spending growth is expected to gradually stall and by 2017 the annual revenue growth rate will be half of what it is today, Insight Research says. Growth is generally moderating gradually, for a number of reasons.
For starters, the installed base of revenue is growing larger, so it is harder to maintain higher growth rates. Also, at some point, most U.S. cell sites will have been converted to carrier Ethernet.
Pricing pressures will continue as competition remains significant in the market, and as Ethernet displaces most private line and frame relay services.
According to the study, Ethernet's central driver continues to be its ability to meet seemingly endlessly growing bandwidth demands at lower cost and with greater flexibility than competing services.
A major growth driver in years past had been the large-scale migration of wireless backhaul cell sites from TDM to Ethernet, and though still a contributory growth factor, backhaul growth will start to moderate as LTE deployments are completed.
"Wireless backhaul had been a major factor in this fast-growing telecommunications services sector, but with much of the conversion of TDM to Ethernet completed, we are forecasting that spending on Ethernet will moderate," says Robert Rosenberg, president of Insight Research. "Over the five year forecast period we project a compounded annual revenue growth rate of 17 percent, with growth slowing by 2016 to be more in the range of 12 to 15 percent.”
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Digital Local Media Ads to Grow 13.1% in 2012, According to BIA/Kelsey
Mobile search will grow faster, at 77.2 percent. Online video will grow 51.6 percent and social will grow 26.3 percent.
Compound average growth rates between 2011 and 2016 include:
* newspapers – online revenues: 5.0 percent
* radio – online revenues: 11.8 percent
* television – online revenues: 12.8 percent
* digital out of home: 11.7 percent
* online: 9.4 percent
* mobile: 44.9 percent
* Internet Yellow Pages: 12.5 percent
* email, reputation and presence management: 14.9 percent
* social media: 21.0 percent
* online video: 36.7 percent.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Devices Now Becoming a Way for Application Providers to Connect Consumers with Apps
“We always wanted to be in the hardware business,” Google Chairman Eric Schmidt says. That comment, whether fully accurate as a description of Google's thinking or not, does seem to describe current thinking in much of the applications business.
Sony has for decades argued that ownership of content was important for selling TVs. Apple found that iTunes enabled it to create a dominant position in the MP-3 player market. The App Store has been crucial for iPad and iPhone sales, in the same way that the Android Market and Google Play have been important for sales of Android devices.
Amazon's content richness is a key reason for the success of the Kindle Fire. So though it might not be a feasible strategy for every application provider, it certainly seems true that an integrated device plus content and software strategy makes increasing sense.
In other markets, the success of the Square mobile software that turns a tablet or a smart phone into a retail point of sale terminal provides another example of how hardware enables a software or service business.
And Oracle has seen value in bundling hardware with enterprise applications.
Sony has for decades argued that ownership of content was important for selling TVs. Apple found that iTunes enabled it to create a dominant position in the MP-3 player market. The App Store has been crucial for iPad and iPhone sales, in the same way that the Android Market and Google Play have been important for sales of Android devices.
Amazon's content richness is a key reason for the success of the Kindle Fire. So though it might not be a feasible strategy for every application provider, it certainly seems true that an integrated device plus content and software strategy makes increasing sense.
In other markets, the success of the Square mobile software that turns a tablet or a smart phone into a retail point of sale terminal provides another example of how hardware enables a software or service business.
And Oracle has seen value in bundling hardware with enterprise applications.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Sprint Accelerates Roll-Out of Long Term Evolution Network
Sprint appears to be accelerating its deployment of its new 4G Long Term Evolutiion network, announcing availability in 15 cities where it had promised availability in just five cities. Those cities include:
Atlanta
Athens, Ga.
Calhoun, Ga.
Carrollton, Ga.
Newnan, Ga.
Rome, Ga.
Dallas
Fort Worth, Texas
Granbury-Hood County, Texas
Houston
Huntsville, Texas
San Antonio, Texas
Waco, Texas
Kansas City, Mo.-Kan.
St. Joseph, Mo.
Atlanta
Athens, Ga.
Calhoun, Ga.
Carrollton, Ga.
Newnan, Ga.
Rome, Ga.
Dallas
Fort Worth, Texas
Granbury-Hood County, Texas
Houston
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Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
Now TV Moves Users Closer to Internet TV Delivery
Dish Network CEO Charlie Ergen has said that, if he were starting today, he probably would not choose to launch a video entertainment service using satellites, and might opt for a "Netflix" style, over the top over the top delivery method.
In the United Kingdom, BSkyB, the dominant satellite video service provider, is going to try something similar, if restricted for the moment to movie fare.
Instant access to hundreds of the latest titles on Sky Movies, with new and exclusive premieres available each Friday, at least a year before any other online subscription service, as BSkyB launches Now TV, without a contract, using online delivery, not a satellite connection.
Now TV is launching in the United Kingdom on PC, Mac and selected Android smartphones; on iPhone, iPad within the next month, on XBox later in 2012. That is not entirely revolutionary. Online delivery of movie content is fairly well established.
The next big breakthrough will come when single TV episodes, an entire TV series or a complete TV channel or network can be purchased separately, with online delivery, without the requirement for first buying a standard TV service.
In the United Kingdom, BSkyB, the dominant satellite video service provider, is going to try something similar, if restricted for the moment to movie fare.
Instant access to hundreds of the latest titles on Sky Movies, with new and exclusive premieres available each Friday, at least a year before any other online subscription service, as BSkyB launches Now TV, without a contract, using online delivery, not a satellite connection.
Now TV is launching in the United Kingdom on PC, Mac and selected Android smartphones; on iPhone, iPad within the next month, on XBox later in 2012. That is not entirely revolutionary. Online delivery of movie content is fairly well established.
The next big breakthrough will come when single TV episodes, an entire TV series or a complete TV channel or network can be purchased separately, with online delivery, without the requirement for first buying a standard TV service.
Gary Kim was cited as a global "Power Mobile Influencer" by Forbes, ranked second in the world for coverage of the mobile business, and as a "top 10" telecom analyst. He is a member of Mensa, the international organization for people with IQs in the top two percent.
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