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Great ideas of our time: if operators could provide “consistently great” mobile broadband, they could charge more for it
BelAir Networks made the news this week for another reason, but before it did so it released a survey conducted on its behalf of by TNS finding that many mobile broadband users in the USA and UK would be willing to pay a considerable amount more than they currently do if they could access a “consistently great” quality service.
The survey found that only 43% of its US and UK respondents were satisfied with the speed and quality of their mobile broadband service. As a result, operators are missing out three times over by being unable to meet the challenge of providing “consistently great” mobile broadband. The first loss is of a direct revenue opportunity – with 36% of smartphone users in the US and more than 22% in the UK claiming that they would be willing to pay an additional $10 or more per month for such a thing.
The second missed opportunity is in indirect opportunities. For example, nearly two thirds (59%) of respondents surveyed say they are unlikely to use their mobile phone for online shopping and m-commerce services due to unreliable mobile internet connections. Mobile video monetisation opportunities could also be dented; 73% of GB smartphone users and 69% of their US counterparts are likely to be put off using mobile video services due to poor network quality.
Finally, there is the issue of customer loyalty, or potential churn. 77% of respondents blame the service provider for any mobile broadband problems they experience while 24% hold the application responsible and only 16% blame the device. BelAir’s survey backs up another recent piece of sponsored research, commissioned by Mobixell from OnDevice Research, showing that when it comes to mobile video, customers do indeed appear to hold operators responsible for the quality of service, rather than the content, app or website provider.
OnDevice’s research found that 74% of mobile users see operators as responsible for poor video experience – a remarkably similar result to TNS’ poll. The survey also found that slow browsing speed would cause 43% of respondents to consider churning provider, while another 24% said that buffering and poor video quality would cause them to consider switching.
Of course, providing a “consistently great” mobile broadband service (CGMBS) is a lot easier said than done, and working out how to do it is kind of what we’re all here for. It takes in most of everything we will see at MWC next week, certainly on the network technology, services and associated support systems side of things.
The need to provide a CGMBS is why BelAir was acquired by Ericsson, so Ericsson could offer its carrier customers an integrated WiFi-cellular offering (and so it could get into some US carriers as well, as an aside). The need to provide a CGMBS is why we will see technology providers talk not just about the HetNet in top level terms, but the nuts and bolts that turn that the WiFi-cellular, small, micro, pico, macro vision into reality – SON, active antennas, planning, deployment, intelligence at the edge, shared processing power, backhaul.
It’s why we see investment in core networks, in next generation signalling platforms, in optimisation, DPI and policy engines. The need to provide a CGMBS also lies behind the rise of customer analytics, of data capture, interrogation and correlation in real time, so that the operator stands a chance of offering a customer a decent, even personalised, service.
Only then can we turn the envelope over and look at what that CGMBS could bring in direct value (those customers who are willing to pay more), through additional services, and indirectly.
As many of us head to MWC in Barcelona next week we should always be asking ourselves: how does this box/platform/chipset/antenna/software/vision/piece of powerpoint/next beer etc etc help provide a CGMBS? Then we ask if it adds enough value, or saves enough cost, to be worth the investment.
Please look out for daily news from us at the show, both on the site and delivered to your inbox first thing every morning. And if we’re not explaining how the things we are reporting on help to deliver a CGMBS, then let us know.