New Pathways to Profit with Network Visibility
The software component of this type of solution, a Smart Network Application Platform (SNAP), will provide ubiquitous, real-time access to critical network data, replacing traditional methods that can’t scale to the growing number of connected devices.
Unexpected Benefits: New Classes of Services
The beauty of the SNAP approach is that operators can run a range of applications from an open platform. And, beyond improving troubleshooting, there are new opportunities for carriers to create new classes of services based on customer needs and applications.
There is a substantial, largely untapped market for premium-level services. Just as airlines have created first-class travel for passengers willing to pay more for a higher level of service, the same is likely to be true for carriers. The old model is to offer wireless customers a package based on minutes or data usage, but the new model will be to create services with guaranteed quality of service levels.
Who will pay for higher, guaranteed service levels? More online gamers are playing on mobile devices. Consumers are watching movies and videos on smartphones. Nothing is more frustrating than long downloads or interruptions when viewing videos.
Many people see a future where most of our consumer transactions involve mobile phones and devices. The growth of wireless-enabled commerce will require higher levels of service.
Business travelers are another important customer base. They require guaranteed quality of service no matter where they travel. And, like the other groups, they will pay for this enhanced service.
What makes these particular applications possible is the ability for service providers to verify the promised level of service that is received. Known as service level agreements, they are common in the data communications market for large enterprise users. There will likely be a considerable market for premium video access where a wireless provider can guarantee audio and video quality.
Maximizing Network Value
As with all industries, the future of networking belongs to companies that do the best job of maximizing their value. Operators can learn from recent social media and tech successes and innovate like the world’s most successful companies. For example, Apple created new classes of products with their iPhone and iPad and, in the process, created tremendous market value. Google is another good example. They have grown by offering consumers free services such as search and email but then mine this customer data to attract advertisers.
Look at the stock value of Apple and Google compared to much larger companies such as AT&T and Verizon. AT&T and Verizon have substantially greater revenues but much lesser market values.
