Tuesday, August 26, 2008

Mind the gap

As mobile data usage explodes, mobile operators are noticing a growing gap between bytes delivered and revenue generated.

With voice traffic, each additional minute of traffic typically generates an equal amount of revenues.

Today, data revenues have jumped from per byte to flat rate and usage is exploding, generating a traffic/revenue gap.

With estimates indicating as much as 50% of mobile traffic is generated in the home, a home zone service offer, based on low-power in-home radios like femtocells or Wi-Fi, are helping mobile operators ‘mind the gap.’ With a home zone service offer, operators are able to offload bandwidth intensive media-rich applications onto the user’s own fixed- broadband network. The result is a win-win situation for operators and users. Operators collect the flat rate fee, even for traffic not carried on their network, whereas users receive high quality broadband access on their mobile phones.

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