|By Thorsten Trapp||
|February 18, 2013 08:00 AM EST||
The telecom industry will be challenged in the coming year as operators learn to adapt to the rapidly changing mobile landscape.
2012 was the year of mobile - big brands and Internet companies have just started to realize the potential impact that mobile communications can have on their engagement with consumers. I expect the mobile trend will continue in 2013, with SMS being the most rapidly changing application. Competition between operators and Internet companies will cause these two distinct worlds to work together in different ways. With this in mind, the following are my 2013 predictions for the telco industry.
We will witness a rebirth of SMS.
In times of crisis or low network connectivity, SMS remains the go-to communication mechanism. In the aftermath of Hurricane Sandy, residents in the northeastern U.S. lost power for days, making the task of voting in the Presidential election a difficult undertaking. To help voters find the nearest polling station, Google set up a custom instance of an SMS-based locator for voters. When disaster strikes, SMS has a major advantage over voice, OTT services and email. This time next year, rather than focusing on "the death of SMS," we'll be discussing "the rebirth of SMS" thanks to its proven reliability and interoperability in times of crisis.
Google and Facebook will take over the world with SMS.
Picking up where they left off in 2012, the world's two biggest Internet players will demonstrate the power of SMS as they spread connectivity into developing countries. With the successful launch of Google Gmail SMS in Ghana, Nigeria and Kenya, users can manage their email via text message by activating a simple setting on their Gmail account. Google+ SMS also allows users to update their status via text message.
Similarly, Facebook is using SMS to extend their reach into developing countries. For example, "only" 5 percent of the population in Africa and 7 percent in Asia have access to Facebook. Meanwhile, Facebook maintains 45 percent market share in North America and 30 percent in Europe. With the mounting pressure from shareholders, these developing markets present a huge opportunity for the social giant to expand its footprint even further.
LTE will drive down the price of devices and access: a winning combination for consumers.
Today, consumers must look no further than their local BestBuy or Apple store to purchase an iPhone or SIM-free smartphone and obtain the data and access separately. LTE will only compound this trend, as mobile operators will increasingly be regarded as a data pipe. Consumers will continue to experience savings and access to new applications while operators will compete with each other on price, speed and better coverage. In 2013, we expect to see four distinct shifts with mobile operators:
- Device sales will drop and margins on existing devices will narrow.
- Operators will try to compensate for lower device sales by attracting users with "access" to their network.
- To prevent further revenue loss, operators will focus on fostering existing billing relationships with customers.
- Operators will be forced to "go all in" and invest heavily in LTE, thereby weeding out smaller carriers and positioning larger operators with deeper pockets on top.
RCS-e will fail.
The goal of the GSMA's RCS-e standard aims to help operators offer OTT services such as Instant Messaging, chat, video sharing and file transfer using their existing networks. However, there are four key hurdles that we believe will prevent the initiative from succeeding:
- Late to Market: RCS-e will be hard pressed to compete with services already being used by existing standards and platforms.
- Little to No Differentiation: While the likes of WhatsApp and Viber have already developed their services, it will be an uphill battle for RCS-e-based services such as Joyn to match what is out there already. There is no compelling argument to switch.
- Lack of interoperability: RCS-e requires compatible handsets and network infrastructure. As neither of these are widespread, RCS-e will not work on an international scale for some time so it will be less attractive than the existing OTT offerings.
- Operator-Dependent Business Model: RCS-e is competing against what are now OTT brand names, which offer their service for free or a minimal charge. The dependence on operators to create RCS-e interoperability is a huge hurdle, and will likely make it economically unattractive for subscribers before services have even launched.
Cross-industry alliances between Web 2.0 companies and carriers will be on the rise.
The lure of mobile for new media companies and vice versa will lead to a massive increase in partnerships with carriers. We have already witnessed a number of deals that indicate that this trend is already underway. Verizon now offers Skype mobile VoIP service for 3G smartphone customers while also offering mobile with video on its 4G LTE Mobile Broadband network. Messaging giant WhatsApp has also partnered with 3 Hong Kong for the provision of a WhatsApp-branded mobile data plan and roaming package. In addition, WhatsApp has struck another deal with Indian operator Reliance Communications to bring WhatsApp to college kids for free as part of its MyCollegePlan. Driven by the prospect of the "next big revenue-generator" in the form of mobile services and mobile advertising, in 2013 we will see many more alliances being forged across industries and through the carrier value chain.
Network instability will continue despite the promise of 4G.
Consumers have an insatiable appetite for newer, faster and more reliable access to technology. But the cost of shorter technology lifecycles is usually network instability. Shorter lifecycles mean less time to recoup the operators' investment, which means less testing and lower quality, all of which point to worsening service for consumers - a true dichotomy of supply and demand. While 2G maintained its rank as the industry standard for over a decade, 3G came and went and has already reached the end of its life cycle in half the time. Furthermore, the sheer volume of Internet-ready devices is contributing to the demise of the wireless data spectrum. As a result, smartphone users can expect to experience slower service and dropped connections.
With the emergence of free or low cost messaging services and OTT players, mobile operators have been forced to innovate, rather than rely on traditional voice and SMS services. As revenues are continually threatened, carriers will reevaluate their business models and search for new revenue-generating markets and partnerships. As a result of this innovation, 2013 will prove to be a favorable year for mobile users. Consumers will experience lower prices and new applications as operators and Internet companies compete for market share.
Chuck Piluso will present a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Speaker Bio: Prior to Data Storage Corporation (DSC), Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Telecommunications Corporation, a facilities-based international carrier licensed by t...
Apr. 27, 2015 09:00 PM EDT
There are lots of challenges in IoT around secure, scalable and business friendly infrastructure for enterprises. For large corporations, IoT implementations are one of the top priorities of the decade. All industries are seeing a competitive need to sustain by investing in IoT initiatives. The value addition comes from improved customer service, innovative product and additional revenue streams. The data from these IP-connected devices can be leveraged for a variety of business applications as well as responsive action controls. The various architectural building blocks of an IoT ...
Apr. 27, 2015 09:00 PM EDT
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Apr. 27, 2015 06:00 PM EDT Reads: 4,492
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
Apr. 27, 2015 04:00 PM EDT Reads: 2,515
SYS-CON Events announced today that Ciqada will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Ciqada™ makes it easy to connect your products to the Internet. By integrating key components - hardware, servers, dashboards, and mobile apps - into an easy-to-use, configurable system, your products can quickly and securely join the internet of things. With remote monitoring, control, and alert messaging capability, you will meet your customers' needs of tomorrow - today! Ciqada. Let your products take flight. For more inform...
Apr. 27, 2015 04:00 PM EDT Reads: 1,934
WebRTC is an up-and-coming standard that enables real-time voice and video to be directly embedded into browsers making the browser a primary user interface for communications and collaboration. WebRTC runs in a number of browsers today and is currently supported in over a billion installed browsers globally, across a range of platform OS and devices. Today, organizations that choose to deploy WebRTC applications and use a host machine that supports audio through USB or Bluetooth can use Plantronics products to connect and transit or receive the audio associated with the WebRTC session.
Apr. 27, 2015 04:00 PM EDT Reads: 1,913
The best mobile applications are augmented by dedicated servers, the Internet and Cloud services. Mobile developers should focus on one thing: writing the next socially disruptive viral app. Thanks to the cloud, they can focus on the overall solution, not the underlying plumbing. From iOS to Android and Windows, developers can leverage cloud services to create a common cross-platform backend to persist user settings, app data, broadcast notifications, run jobs, etc. This session provides a high level technical overview of many cloud services available to mobile app developers, includi...
Apr. 27, 2015 04:00 PM EDT Reads: 1,429
Health care systems across the globe are under enormous strain, as facilities reach capacity and costs continue to rise. M2M and the Internet of Things have the potential to transform the industry through connected health solutions that can make care more efficient while reducing costs. In fact, Vodafone's annual M2M Barometer Report forecasts M2M applications rising to 57 percent in health care and life sciences by 2016. Lively is one of Vodafone's health care partners, whose solutions enable older adults to live independent lives while staying connected to loved ones. M2M will continue to gr...
Apr. 27, 2015 03:00 PM EDT Reads: 1,535
Dave will share his insights on how Internet of Things for Enterprises are transforming and making more productive and efficient operations and maintenance (O&M) procedures in the cleantech industry and beyond. Speaker Bio: Dave Landa is chief operating officer of Cybozu Corp (kintone US). Based in the San Francisco Bay Area, Dave has been on the forefront of the Cloud revolution driving strategic business development on the executive teams of multiple leading Software as a Services (SaaS) application providers dating back to 2004. Cybozu's kintone.com is a leading global BYOA (Build Your O...
Apr. 27, 2015 02:00 PM EDT Reads: 1,579
As enterprises move to all-IP networks and cloud-based applications, communications service providers (CSPs) – facing increased competition from over-the-top providers delivering content via the Internet and independently of CSPs – must be able to offer seamless cloud-based communication and collaboration solutions that can scale for small, midsize, and large enterprises, as well as public sector organizations, in order to keep and grow market share. The latest version of Oracle Communications Unified Communications Suite gives CSPs the capability to do just that. In addition, its integration ...
Apr. 27, 2015 01:30 PM EDT Reads: 4,429
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. He is a Microsoft Regional Director for Hyderabad, India, and one of the f...
Apr. 27, 2015 12:00 PM EDT Reads: 1,678
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!
Apr. 27, 2015 12:00 PM EDT Reads: 2,329
While not quite mainstream yet, WebRTC is starting to gain ground with Carriers, Enterprises and Independent Software Vendors (ISV’s) alike. WebRTC makes it easy for developers to add audio and video communications into their applications by using Web browsers as their platform. But like any market, every customer engagement has unique requirements, as well as constraints. And of course, one size does not fit all. In her session at WebRTC Summit, Dr. Natasha Tamaskar, Vice President, Head of Cloud and Mobile Strategy at GENBAND, will explore what is needed to take a real time communications ...
Apr. 27, 2015 12:00 PM EDT Reads: 1,801
How is unified communications transforming the way businesses operate? In his session at WebRTC Summit, Arvind Rangarajan, Director of Product Marketing at BroadSoft, will discuss how to extend unified communications experience outside the enterprise through WebRTC. He will also review use cases across different industry verticals. Arvind Rangarajan is Director, Product Marketing at BroadSoft. He has over 19 years of experience in the telecommunications industry in various roles such as Software Development, Product Management and Product Marketing, applied across Wireless, Unified Communic...
Apr. 27, 2015 11:00 AM EDT Reads: 1,729
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and easy to use. MangoApps has been named a "Market Leader" by Ovum Research and a "Cool Vendor" by Gartner...
Apr. 27, 2015 11:00 AM EDT Reads: 3,591
SYS-CON Media announced today that @ThingsExpo Blog launched with 7,788 original stories. @ThingsExpo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @ThingsExpo Blog can be bookmarked. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago.
Apr. 27, 2015 11:00 AM EDT Reads: 2,573
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
Apr. 27, 2015 11:00 AM EDT Reads: 2,117
SYS-CON Events announced today that robomq.io will exhibit at SYS-CON's @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. robomq.io is an interoperable and composable platform that connects any device to any application. It helps systems integrators and the solution providers build new and innovative products and service for industries requiring monitoring or intelligence from devices and sensors.
Apr. 27, 2015 11:00 AM EDT Reads: 2,105
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
Apr. 27, 2015 11:00 AM EDT Reads: 2,892
Wearable technology was dominant at this year’s International Consumer Electronics Show (CES) , and MWC was no exception to this trend. New versions of favorites, such as the Samsung Gear (three new products were released: the Gear 2, the Gear 2 Neo and the Gear Fit), shared the limelight with new wearables like Pebble Time Steel (the new premium version of the company’s previously released smartwatch) and the LG Watch Urbane. The most dramatic difference at MWC was an emphasis on presenting wearables as fashion accessories and moving away from the original clunky technology associated with t...
Apr. 27, 2015 11:00 AM EDT Reads: 2,117