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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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