Amazon Tech Support

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

Wednesday, 11 May 2011

Another reason why app / service based pricing for mobile broadband will fail

Posted on 02:06 by Unknown
Imagine, if you will, that you are the CEO of a mobile operator that's just launched a new tiered-pricing model for mobile data on laptops and smartphones. It's based on differential pricing and QoS for different data/Internet applications. You've bought a ton of DPI and policy boxes to detect and enforce traffic, and you've proudly announced a new "menu" of pricings.

$10 per month = email, IM, basic web browsing
$15 per month = adds in social networking & mapping
$25 per month = adds in low-quality video & selected cloud services & basic VoIP
$35 per month = adds in high-quality video & high-quality VoIP

You've nicely defined all the different web services into the different buckets, and set up the T's and C's and the policy boxes appropriately.

Now this morning, you've woken up to find that Microsoft has bought Skype. So now Microsoft has extra IM, VoIP and video-calling, as well as its own way of doing WiFi offload via the Skype/Boingo relationship. There's likely to be a whole host of mashed-up applications, launched over the next couple of years - some fixed, some mobile, some consumer, some business, some free, some paid.

So how exactly does that fit with the carefully-crafted pricing model and network policy setup? What's the business process for evaluating what has to change? What are the technical implications? What are the legal implications? How does it fit with partnering deals? How will users be informed? Does Microsoft have VPN services? What happens to stuff Microsoft / Skype does in the cloud? Does everything look the same on different devices & OS's? And how fast can any updates be made?

The list of headaches is endless. The scope for messing up is huge. And it's all highly dynamic & will change continually.

For me, this is yet another example of why app-specific pricing & policy is doomed to be limited to a few niches (eg anti-virus, throttling P2P uplink). Never mind the Net Neutrality legal debate - it is practical problems like this that make service-specific tariffs and so-called "personalisation" service menus irrelevant at best, and outright damaging at worst.
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

  • The Number 1 problem for "seamless" models of WiFi offload / network selection
    I frequently argue against the assumption that "seamless" connection to WiFi is practical or desirable, especially for the general...
  • 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...
  • Part of Nokia's problem - making Ovi compelling
    I've got a Nokia Ovi account somewhere. Signed up for it ages ago, to play around with the Ovi Store when I had an N97 to play with, ba...
  • Putting a value on customer data with reference to offload
    There continues to be a ferocious discussion about AT&T's new data plans - and also, as I commented a couple of weeks ago, about the...
  • 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...
  • For telcos, "Monetising OTT" is about distribution partnerships & revshare, not QoS or termination fees
    A couple of years ago, I moderated a panel session at a conference on broadband business models and "traffic management". It was o...
  • BT WiFi smartphone application
    I've just seen BT's announcement of its new iPhone and Android app, offering free WiFi access at its Openzone and FON hotspots to i...
  • An update on @DApremium - the world's first paid Twitter channel. Now available with quarterly or annual subscriptions
    It's now been six weeks since I announced the launch of @DApremium , my second Twitter stream - one which is available only to paid subs...
  • 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...
  • There really needs to be a "User tariff API" for developers
    Generally speaking, app developers and website owners know what device you've got, what OS, and what browser. Furthermore, they know wha...

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)
      • Gaming the new peering arrangements - will non-neu...
      • Future of Voice Masterclasses: June 30th Santa Cla...
      • Thoughts from the LTE World Summit
      • Telcos paying OTT players - balance of payments wi...
      • Another reason why app / service based pricing for...
      • Microsoft + Skype + Nokia = NextGen 4G Mobile VoIP...
      • My Top 10 blog posts from the past few years
      • Business model innovation in mobile broadband - th...
      • Is KPN about to hit the Net Neutrality "suicide bu...
    • ►  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)
    • ►  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