Tuesday, 11 November 2008

Challenges for Mobile Broadband Operators in Managing Traffic & User Control

The tremendous growth of mobile broadband usage, with annual growth rates of 200% in parts of North America and upwards of 800% in parts of Europe, will create future challenges for service providers if not properly managed.

According to a new custom study from Parks Associates titled Mobile Broadband in North America and Europe: Change is Key to Continuing Profitability, found that many carriers rely on outdated business models, excessive pricing or flat-rate billing, to manage traffic.

Excessive pricing slows growth and invites cutthroat competition. Flat-rate carriers charge a single rate for unlimited service, which does not effectively monetize traffic. Both models are unsustainable given current growth trends, says Parks Associates.

“Carriers need to create business models with more refined network controls in order to facilitate market growth while maintaining profitability,” said Anton Denissov, research analyst, Parks Associates.

“These models must be easy for consumers to understand and also address specific needs, so subscribers can pick a plan based on whether they want to send e-mails or stream HD content.”