Amazon Tech Support

  • Subscribe to our RSS feed.
  • Twitter
  • StumbleUpon
  • Reddit
  • Facebook
  • Digg

Friday, 29 May 2009

Mobile broadband - a lack of loyalty built-in?

Posted on 08:43 by Unknown
Something to ponder on:

- With a mobile phone, you have two tie-ins to keep you in a subscription-type relationship with your operator: your number and the handset subsidy.

- With PSTN or ADSL connections, you also have the number, which necessitates a subscription-type relationship. In addition, the need for the copper line to be maintained and terminate on a switch port ensures that only continuous types of service are feasible.

- With public WiFi, you can have a subscription, or you can purchase adhoc connectivity when and where you want it.

So what about mobile broadband? As modems get cheaper, or included in PCs, subsidy becomes irrelevant. And there's no need for a permanent "number" - apart from the mechanistic requirement of using a SIM card. But there's no real reason for a customer to be a "subscriber" with an ongoing relationship, rather than buying connectivity on a transaction basis.

This is one of the reasons why operators are desparate to add value to PC-based mobile broadband through additional services like SMS or IM. Otherwise, there is no more need for a subscription than there is to subscribe to "cinema service", or get a season ticket for a transport system. It may be convenient, if you're a regular user and you get a discount and less hassle.

But in principle, there's no reason for mobile broadband connections to be ongoing relationships. This is likely to lead to:

a) Very high churn levels
b) The emergence of a plethora of business models other than "normal" contracts and prepay accounts. Ad-hoc and bundling approaches will become particularly important
c) The near-irrelevance of ARPU as a metric, as it becomes impossible to identify a significant proportion of connections as regular "users"
Email ThisBlogThis!Share to XShare to FacebookShare to Pinterest
Posted in | No comments
Newer Post Older Post Home

0 comments:

Post a Comment

Subscribe to: Post Comments (Atom)

Popular Posts

  • Mobile social networking - how I'll know when it's going mainstream....
    This falls into the category of "amusing personal anecdotes" rather than "rigorous industry analysis". But it also refle...
  • Forget lobbyists, this is how Net Neutrality gets enacted in law....
    I've long held that the Internet will always find ways around any blocking/filtering mechanisms for certain types of application, especi...
  • UK ISPs Code of Practice on Traffic Management - OK as a start, but major flaws
    A group of the UK's largest fixed and mobile ISPs have published a "Code of Practice" about managing traffic on their broadban...
  • The mobile industry buzzword of 2009 will be......
    OFFLOAD This year has been all about mobile broadband revenue and traffic growth. Dongles, iPhones, embedded PCs, Android, consumer BlackBer...
  • The danger of "cutting the cord" - where's the femtocell going to go?
    I see many references to people wanting to "cut the cord", and have an all-mobile home. This is particularly the case in the US, w...
  • The "Social web" - does anyone actually want it?
    Is this another example of The Emperor's New Clothes? I've lost count of the number of pitches I've heard recently along the lin...
  • The Novatel MiFi - possibilities for new mobile broadband business models
    OK, I realise that I've been a bit grumpy and critical of some things recently. But before everyone assumes I'm getting more cantank...
  • Is it just me, or is 3G either really good or really bad, but rarely "OK"
    I've started noticing that my experience of mobile broadband (iPhone 3GS on Voda UK) is much more polarised than that of fixed broadband...
  • What's the story with the Phonejack 'femtocell"?
    I'm now trying to catch up with events and analysis over the past few weeks, as I've been on vacation. One of the more bewildering t...
  • Android - the retail experience
    I just stopped off at my local branch of Carphone Warehouse on a whim, to have a quick look at what's being sold and how. (By coincidenc...

Blog Archive

  • ►  2013 (31)
    • ►  October (2)
    • ►  September (3)
    • ►  August (1)
    • ►  July (2)
    • ►  June (6)
    • ►  May (5)
    • ►  April (1)
    • ►  March (3)
    • ►  February (3)
    • ►  January (5)
  • ►  2012 (46)
    • ►  December (5)
    • ►  November (4)
    • ►  October (3)
    • ►  September (2)
    • ►  August (4)
    • ►  July (3)
    • ►  June (1)
    • ►  May (6)
    • ►  April (4)
    • ►  March (1)
    • ►  February (9)
    • ►  January (4)
  • ►  2011 (73)
    • ►  December (4)
    • ►  November (10)
    • ►  October (8)
    • ►  September (6)
    • ►  August (3)
    • ►  July (5)
    • ►  June (7)
    • ►  May (9)
    • ►  April (4)
    • ►  March (7)
    • ►  February (6)
    • ►  January (4)
  • ►  2010 (130)
    • ►  December (4)
    • ►  November (10)
    • ►  October (10)
    • ►  September (6)
    • ►  August (9)
    • ►  July (7)
    • ►  June (19)
    • ►  May (19)
    • ►  April (11)
    • ►  March (18)
    • ►  February (7)
    • ►  January (10)
  • ▼  2009 (126)
    • ►  December (4)
    • ►  November (14)
    • ►  October (9)
    • ►  September (8)
    • ►  August (9)
    • ►  July (10)
    • ►  June (21)
    • ▼  May (14)
      • Mobile broadband - a lack of loyalty built-in?
      • Does the mobile network standards process inhibit ...
      • Upcoming events - Open Mobile Summit and WiMAX Forum
      • LTE for heavy mobile broadband users? A paradox
      • LTE, mobile broadband & SMS - VoLGA vs. IMS
      • Evolved Packet Core in LTE
      • Are there risks associated with an LTE "monoculture"?
      • Microsoft - bearer-aware applications are the way ...
      • At the LTE Summit. With a herd of elephants in the...
      • Can mobile operators revenue-share with handset ve...
      • Piracy, Net Neutrality & DPI - Imminent Failure
      • Thoughts on managed ID services by mobile operators
      • Ubiquisys and Intrinsyc - femto-aware Android phones
      • Reconnecting again!
    • ►  April (2)
    • ►  March (11)
    • ►  February (15)
    • ►  January (9)
  • ►  2008 (94)
    • ►  December (24)
    • ►  November (26)
    • ►  October (25)
    • ►  September (19)
Powered by Blogger.

About Me

Unknown
View my complete profile