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                                             Telcordia’s Grant Lenahan,
                                               executive director of wireless mobility
                                               and chief strategist, declared in
                                               a session on the operational impact
                                               of IP multimedia subsystem that
                                               the traditional operator business
                                               model is dead “The new paradigm,
                                               according to Lenahan, splits the
                                               layer in two: the operator layer
                                               and the third party layer.” [Telcordia:
                                               Operator business model is dead By
                                                 Tim McElligott] Success of
                                               Blackberry is an example of third-party
                                               cooperation. Blackberry’s
                                               simplicity for delivering email
                                               and low power usage resulting in
                                               long battery life, made it an enterprise
                                               favorite. Blackberry’s network-based
                                               mail repository and push server
                                               also meshes very well with the architecture
                                               of FMC. |  | 
                                 
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                                            Never dismiss the Java and the open
                                            source community. A smart phone Linux
                                          is likely. |  |  
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                                                  mobile devices. In its current
                                                    product release announcements,
                                                    Motorola is banking on video-enabled
                                                    phones to reclaim their flagging
                                                    market share. Getting more
                                                    TV and Movies on phones is
                                                    their stated strategy. Motorola’s
                                                    president says they are moving
                                                    away from depending on the
                                                    success of one phone and
                                                    will focus more on how the
                                                    phone will deliver applications
                                                    such as mobile video and
                                                    music. Is this an opening
                                                    up to FMC? Are they committed
                                                    to the FMC multi-modal network
                                                    device?
                                                    IDC finds mobile operators
                                                    hesitant to embrace FMC in
                                                    their report on FMC market |  |  |  
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                                          Despite the views that the mobile
                                             service providers are set to be
                                             the big winners, we know that all
                                             is not well with mobile providers.
                                             They must find ways to increase
                                             the Average Revenue Per User. Many
                                             of these services rely on content
                                             provided by third parties, and that
                                             creates a myriad of content management,
                                             quality of service, and content
                                             vendor partner management challenges.
                                             The fastest growing market segment
                                             for mobile operators is the youth.
                                             They will leap on a newly introduced
                                             service and drive it to immediate
                                             profitability. They did this with
                                             text messaging; ring tones, and
                                             taking and sending pictures on their
                                             phones. Yet, they are famously not
                                             loyal to brands and will switch
                                             to another provider lured by the
                                             offer of cooler capabilities. And
                                             using those cooler capabilities
                                             requires ever increasing sophistication
                                             in the handsets as well as the networks.
                                             So to get that increase in ARPU,
                mobile providers must provide substantial subsidies of the cost
                of mobile phones/devices to improve stickiness; most tie that
                shiny new handset into an extension of the contract too - or
                their customers will skip to their competition. 
                                           Currently the hot trend in the mobile
                                            phone market is video, and on even
                                            thinner phones.   “Thinness” and
                                            increased power consumption required
                                            for video add more expense to  |  | 
                                  
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                                          evolution: “As yet,
                                            most pure mobile operators have not
                                            been as active in developing FMC
                                            services in comparison with fixed
                                            and integrated operators. It can
                                            be assumed that these operators do
                                            not see the benefit of partnering
                                            with fixed-line operators to offer
                                            FMC services. Rather, many pure mobile
                                            operators appear to believe that
                                            they can offer end users the benefits
                                            of FMC services on their own.” [IDC,
                                          CG29M]
                                           Another source of higher revenues
                                            and margins are Enterprise customers,
                                            ripe for the introduction of advanced
                                            services. The devices which support
                                            advanced services and FMC network
                                            capabilities (smart phones with WiFi & USDPA
                                            or equivalent) are very expensive
                                            retailing for $400-$700 USD - beyond
                                            the budget threshold of most consumers.
                                            Mobile service providers are hoping
                                            to get unified services first to
                                            enterprise customers: in part because
                                            the enterprise customer can afford
                                            the high cost of smart, convergent
                                            devices; in part because they want
                                            the higher prices business customers
                                            pay.  More fuel for the continued merger
                                            of wired and wireless service providers,
                                            driving the rush |  
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