|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.
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Oct. 28, 2016 01:30 PM EDT Reads: 5,156
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this ...
Oct. 28, 2016 01:15 PM EDT Reads: 8,648
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Oct. 28, 2016 01:00 PM EDT Reads: 2,400
"We've discovered that after shows 80% if leads that people get, 80% of the conversations end up on the show floor, meaning people forget about it, people forget who they talk to, people forget that there are actual business opportunities to be had here so we try to help out and keep the conversations going," explained Jeff Mesnik, Founder and President of ContentMX, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Oct. 28, 2016 01:00 PM EDT Reads: 3,719
Intelligent machines are here. Robots, self-driving cars, drones, bots and many IoT devices are becoming smarter with Machine Learning. In her session at @ThingsExpo, Sudha Jamthe, CEO of IoTDisruptions.com, will discuss the next wave of business disruption at the junction of IoT and AI, impacting many industries and set to change our lives, work and world as we know it.
Oct. 28, 2016 12:30 PM EDT Reads: 630
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, will discuss the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They will also review two "free infrastruct...
Oct. 28, 2016 12:30 PM EDT Reads: 281
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Oct. 28, 2016 12:15 PM EDT Reads: 1,301
In past @ThingsExpo presentations, Joseph di Paolantonio has explored how various Internet of Things (IoT) and data management and analytics (DMA) solution spaces will come together as sensor analytics ecosystems. This year, in his session at @ThingsExpo, Joseph di Paolantonio from DataArchon, will be adding the numerous Transportation areas, from autonomous vehicles to “Uber for containers.” While IoT data in any one area of Transportation will have a huge impact in that area, combining sensor...
Oct. 28, 2016 12:00 PM EDT Reads: 1,235
In his general session at 19th Cloud Expo, Manish Dixit, VP of Product and Engineering at Dice, will discuss how Dice leverages data insights and tools to help both tech professionals and recruiters better understand how skills relate to each other and which skills are in high demand using interactive visualizations and salary indicator tools to maximize earning potential. Manish Dixit is VP of Product and Engineering at Dice. As the leader of the Product, Engineering and Data Sciences team a...
Oct. 28, 2016 12:00 PM EDT Reads: 944
Join IBM November 2 at 19th Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how to go beyond multi-speed it to bring agility to traditional enterprise applications. Technology innovation is the driving force behind modern business and enterprises must respond by increasing the speed and efficiency of software delivery. The challenge is that existing enterprise applications are expensive to develop and difficult to modernize. This often results in what Gartner calls...
Oct. 28, 2016 11:30 AM EDT Reads: 294
Although it has gained significant traction in the consumer space, IoT is still in the early stages of adoption in enterprises environments. However, many companies are working on initiatives like Industry 4.0 that includes IoT as one of the key disruptive technologies expected to reshape businesses of tomorrow. The key challenges will be availability, robustness and reliability of networks that connect devices in a business environment. Software Defined Wide Area Network (SD-WAN) is expected to...
Oct. 28, 2016 11:00 AM EDT Reads: 2,284
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Oct. 28, 2016 11:00 AM EDT Reads: 367
The Internet of Things (IoT), in all its myriad manifestations, has great potential. Much of that potential comes from the evolving data management and analytic (DMA) technologies and processes that allow us to gain insight from all of the IoT data that can be generated and gathered. This potential may never be met as those data sets are tied to specific industry verticals and single markets, with no clear way to use IoT data and sensor analytics to fulfill the hype being given the IoT today.
Oct. 28, 2016 10:30 AM EDT Reads: 2,959
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the...
Oct. 28, 2016 09:15 AM EDT Reads: 11,636
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Oct. 28, 2016 08:00 AM EDT Reads: 3,537
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Oct. 28, 2016 08:00 AM EDT Reads: 5,099
SYS-CON Events announced today that Streamlyzer will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Streamlyzer is a powerful analytics for video streaming service that enables video streaming providers to monitor and analyze QoE (Quality-of-Experience) from end-user devices in real time.
Oct. 28, 2016 07:15 AM EDT Reads: 1,123
You have great SaaS business app ideas. You want to turn your idea quickly into a functional and engaging proof of concept. You need to be able to modify it to meet customers' needs, and you need to deliver a complete and secure SaaS application. How could you achieve all the above and yet avoid unforeseen IT requirements that add unnecessary cost and complexity? You also want your app to be responsive in any device at any time. In his session at 19th Cloud Expo, Mark Allen, General Manager of...
Oct. 28, 2016 07:15 AM EDT Reads: 1,128
Established in 1998, Calsoft is a leading software product engineering Services Company specializing in Storage, Networking, Virtualization and Cloud business verticals. Calsoft provides End-to-End Product Development, Quality Assurance Sustenance, Solution Engineering and Professional Services expertise to assist customers in achieving their product development and business goals. The company's deep domain knowledge of Storage, Virtualization, Networking and Cloud verticals helps in delivering ...
Oct. 28, 2016 07:00 AM EDT Reads: 1,177
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Oct. 28, 2016 07:00 AM EDT Reads: 3,796