In many markets, broadband internet-access services generate monthly revenue exceeding that of mobile telephony services. Operators who combine and bundle these two mass-market services will have a considerable competitive advantage.
Apart from higher bit rates, users are beginning to imagine and appreciate the advantages that will come with the mobility and universal availability of mobile broadband. Third-generation mobile operators can introduce a range of competitive broadband internet-access services to address this fast-growing segment by drawing on existing assets and Ericsson’s end-to-end mobile broadband offering.
Broadband internet access for all – this ideal creates a competitive market environment that gives users a wide choice. Governments worldwide understand the implications and are driving growth and expansion, in part because mobile broadband is a driver of productivity and in part to bridge the digital divide. Broadband is expected to increase competitiveness, stimulate economic growth by creating new business and job opportunities, and facilitate distance learning and telemedicine. Mobile broadband will play a key role, in particular, by making broadband services available universally in a competitive and cost-effective manner.
Rural areas often lack broadband because wireline operators are seldom willing to provide costly wires for a small number of users. Mobile operators have the edge because mobile broadband and telephony services can be delivered over the same network. This multi-service synergy is especially important in rural areas and can only be achieved with 3G technologies.
In terms of pricing, Ericsson believes operator strategies should aim to maximize the use of network and spectrum resources for generating revenue, instead of trying to maximize revenue per delivered bit. Flat-rate subscriptions give users predictable costs and peace of mind. With technologies such as High-Speed Downlink Packet Access (HSDPA), the evolution of 3G toward higher bit rates and improved capacity has greatly reduced the cost of delivering data services. Pricing must not hamper the multi-service potential of 3G, which can be used to profitably deliver any kind of service.
Mobile broadband successfully creates permanent “background” data traffic that uses operator assets to generate revenue. Prioritization mechanisms provide operators with a means of instantly allocating capacity to high-revenue-per-megabyte services while also ensuring that spare capacity in the network is utilized
