With all the talk about Wireless Internet applications and other
data-related services it’s easy to forget about voice services.
Voice services will still be the bread-and-butter for service providers. Wireless Internet applications and services will
largely complement voice service.
Voice calls in the future will feature new tricks such as:
• Personal chat room effects. The ability to allow multiple users
to join and leave a conversation at will. Similar to text-based
chat, users will have the ability to silence one or more users
and only listen to selected callers. Just as chat rooms allow
users to send private messages to selected users without leaving
the main conversation, future voice calling will offer the
same type of feature.
• Stereo voice. When voice is transmitted in stereo, users will
be able to discern the direction of sounds and more readily
understand who is speaking or making comments during a
conference call.
• Concierge services. During a voice call with a concierge service
representative, the user should be able to request packet
data information from the live person he is talking to. For
example, the caller might ask for a list of restaurants in the
area he is visiting, or a map with the directions to a specific
location. He can receive this document while still on the
voice call and be able to discuss and clarify directions and
recommendations.
• Interactive call waiting. During a voice call the user will be
able to send a message to incoming calls to inform callers
how long the wait will be or to tell them what forms of communication
are currently being accepted. A notification that
the user is willing to accept text messages while on a voice
call would allow the caller to switch into text mode and continue
the communication via text until the existing voice call
is terminated.
The mixing of voice and data will allow features and services
that truly fit the user’s needs and preferences about convenience,
detail, and environment. 203
IT Certification CCIE,CCNP,CCIP,CCNA,CCSP,Cisco Network Optimization and Security Tips
MVNOS—SPLITTING THE SYSTEM INTO TRANSPORT AND MARKETING
Wireless service providers have traditionally owned and operated
the entire wireless system. This system included elements
such as the radio transmission equipment, subscriber management
systems, billing, and customer care and, of course, the
license to use a certain amount of wireless spectrum. The service
provider created a brand (not always with a plan for their
brand, some had more of an accidental reputation than a
strategic branding effort) and ran the whole system of buying
spectrum, building a network and billing system, selling wireless
handsets, signing up customers, and setting up customer
care department to answer the phones and solve customer
issues. Some service providers were better at various parts of
this process than others.
Several factors have made this process more difficult as the
industry matures.
• Spectrum has always been and still is limited. The sheer size
and financial requirements needed to purchase spectrum in
today’s world favor the larger entities.
• Consumers that originally had two wireless carriers to choose
from (if they were lucky) are now faced with upwards of 3–5
options in the larger metropolitan markets.
• Network equipment is increasing in capacity and available
features but at the expense of increasing complexity and the
need for various technical network specialists.
• Billing systems are evolving from simple time-based voiceonly
billing to both voice and data charges, circuit- and IPbased,
and a growing number of constantly changing
promotions and affinity programs not always based on time or
even volume of traffic.
• Branding is becoming more important as service providers
reach out beyond the traditional customer base to appeal to
new groups of users each with specific needs and desired features.
• Subscriber acquisition costs average $300 and can go higher
as markets reach saturation. Subsidizing handsets purchases
for new subscribers ties up capital and lengthens the time to
profitability for each new subscriber.
• Data capability is bringing the need for readily available content
tailored to individual needs and desires.
• The costs involved in keeping the network up to date in functionality
and services depends on increasing network utilization
and efficiency. Even small variances in capacity
utilization can be the difference between profit and loss.
So essentially the environment for the wireless service
providers is one of increasing capital expense for network
equipment that handles voice and data as well as provision
wireless Internet content and services. The ability to leverage
well-known brands to attract specific customer segments is
necessary to quickly build traffic and improve time to revenue
while maximizing network capacity. Service providers are looking
at MVNOs as one way to increase the number of subscribers
in an attempt to pay down these investments in
network build out and maintenance.
Existing service providers may find that other companies with
established brands in noncommunications markets are interested
in leveraging their consumer relationships, content access, and
knowledge by entering the mobile space as an MVNO.
MVNOs would not have the licensed spectrum needed to
operate their own network, but would have other elements
required offering services to the consumers. Some of the pieces
an MVNO may choose to control and own include noncore
network elements such as:
• Voicemail systems
• Billing systems—prepaid or subscription
• Customer care centers
• WAP servers and gateways
• Retail facilities
These noncore elements would be minimal compared to
the cost of spectrum and core network equipment. Despite a
limited investment in equipment, connecting to more than one
existing service provider could further leverage an MVNO’s
brand and mobile equipment resources. This would allow the
MVNO to sell services on more than one radio network. An
example might be an MVNO that offers services over both a
GPRS network as well as a CDMA network all under the same
branding.
MVNOs would rely on the network capabilities of the
underlying operator and focus their efforts on marketing and
promotion efforts to build a subscriber base.
The MVNO might be a partner that has a well-known brand
name and also access to content that could be resold to the
service provider. Content and services could then be marketed
not only under the brand of the MVNO but repackaged for the
existing operators offerings.
The effect of MVNOs on existing network operators
includes:
• Ability to increase the total number of users on their network
albeit under two separate brands. The alternative branding
offered by the MVNO could very well help an operator to
appeal to new target markets not reached by the existing
operators market positioning.
• Access to content and promotions made possible by the
MVNO’s pre-existing business. An example of could be a
record label that has access to popular new music content
leveraging it’s artists content and brand names to attract new
mobile users to their particular MVNO service.
• Faster loading of customers on newer feature rich networks
could help in generating the traffic needed to maximize
return on infrastructure investments.
Not all companies will have a strong enough brand to carry
over into a new mobile service, some are more experienced at
brand extension than others. One of the more successful
MVNOs is Virgin Mobile in the United Kingdom. Launched in
1999, Virgin Mobile is a combination of Richard Branson’s
Virgin group (famous for Virgin record stores as well as Virgin
airlines) and U.K.-based network operator One2One.
MVNOs are poised to assist network operators that wish to
leverage investments in infrastructure by reselling network
capacity to well know brands that are capable of providing targeted
services to customers attracted to a familiar name and
brand image.
Freedom from the challenges of owning and maintaining
the radio transmission equipment allows MVNOs to focus on
creating new services that leverage new network capabilities
for voice and date while attracting and keeping customers.
Companies with strong brands could create an MVNO without
the need to purchase spectrum. MVNOs would only need to
negotiate with traditional carriers that have excess capacity to sell.
Freedom from the challenges of owning and maintaining the
radio transmission equipment allows MVNOs to focus on creating
and maintaining services that attract and keep customers. 201
the entire wireless system. This system included elements
such as the radio transmission equipment, subscriber management
systems, billing, and customer care and, of course, the
license to use a certain amount of wireless spectrum. The service
provider created a brand (not always with a plan for their
brand, some had more of an accidental reputation than a
strategic branding effort) and ran the whole system of buying
spectrum, building a network and billing system, selling wireless
handsets, signing up customers, and setting up customer
care department to answer the phones and solve customer
issues. Some service providers were better at various parts of
this process than others.
Several factors have made this process more difficult as the
industry matures.
• Spectrum has always been and still is limited. The sheer size
and financial requirements needed to purchase spectrum in
today’s world favor the larger entities.
• Consumers that originally had two wireless carriers to choose
from (if they were lucky) are now faced with upwards of 3–5
options in the larger metropolitan markets.
• Network equipment is increasing in capacity and available
features but at the expense of increasing complexity and the
need for various technical network specialists.
• Billing systems are evolving from simple time-based voiceonly
billing to both voice and data charges, circuit- and IPbased,
and a growing number of constantly changing
promotions and affinity programs not always based on time or
even volume of traffic.
• Branding is becoming more important as service providers
reach out beyond the traditional customer base to appeal to
new groups of users each with specific needs and desired features.
• Subscriber acquisition costs average $300 and can go higher
as markets reach saturation. Subsidizing handsets purchases
for new subscribers ties up capital and lengthens the time to
profitability for each new subscriber.
• Data capability is bringing the need for readily available content
tailored to individual needs and desires.
• The costs involved in keeping the network up to date in functionality
and services depends on increasing network utilization
and efficiency. Even small variances in capacity
utilization can be the difference between profit and loss.
So essentially the environment for the wireless service
providers is one of increasing capital expense for network
equipment that handles voice and data as well as provision
wireless Internet content and services. The ability to leverage
well-known brands to attract specific customer segments is
necessary to quickly build traffic and improve time to revenue
while maximizing network capacity. Service providers are looking
at MVNOs as one way to increase the number of subscribers
in an attempt to pay down these investments in
network build out and maintenance.
Existing service providers may find that other companies with
established brands in noncommunications markets are interested
in leveraging their consumer relationships, content access, and
knowledge by entering the mobile space as an MVNO.
MVNOs would not have the licensed spectrum needed to
operate their own network, but would have other elements
required offering services to the consumers. Some of the pieces
an MVNO may choose to control and own include noncore
network elements such as:
• Voicemail systems
• Billing systems—prepaid or subscription
• Customer care centers
• WAP servers and gateways
• Retail facilities
These noncore elements would be minimal compared to
the cost of spectrum and core network equipment. Despite a
limited investment in equipment, connecting to more than one
existing service provider could further leverage an MVNO’s
brand and mobile equipment resources. This would allow the
MVNO to sell services on more than one radio network. An
example might be an MVNO that offers services over both a
GPRS network as well as a CDMA network all under the same
branding.
MVNOs would rely on the network capabilities of the
underlying operator and focus their efforts on marketing and
promotion efforts to build a subscriber base.
The MVNO might be a partner that has a well-known brand
name and also access to content that could be resold to the
service provider. Content and services could then be marketed
not only under the brand of the MVNO but repackaged for the
existing operators offerings.
The effect of MVNOs on existing network operators
includes:
• Ability to increase the total number of users on their network
albeit under two separate brands. The alternative branding
offered by the MVNO could very well help an operator to
appeal to new target markets not reached by the existing
operators market positioning.
• Access to content and promotions made possible by the
MVNO’s pre-existing business. An example of could be a
record label that has access to popular new music content
leveraging it’s artists content and brand names to attract new
mobile users to their particular MVNO service.
• Faster loading of customers on newer feature rich networks
could help in generating the traffic needed to maximize
return on infrastructure investments.
Not all companies will have a strong enough brand to carry
over into a new mobile service, some are more experienced at
brand extension than others. One of the more successful
MVNOs is Virgin Mobile in the United Kingdom. Launched in
1999, Virgin Mobile is a combination of Richard Branson’s
Virgin group (famous for Virgin record stores as well as Virgin
airlines) and U.K.-based network operator One2One.
MVNOs are poised to assist network operators that wish to
leverage investments in infrastructure by reselling network
capacity to well know brands that are capable of providing targeted
services to customers attracted to a familiar name and
brand image.
Freedom from the challenges of owning and maintaining
the radio transmission equipment allows MVNOs to focus on
creating new services that leverage new network capabilities
for voice and date while attracting and keeping customers.
Companies with strong brands could create an MVNO without
the need to purchase spectrum. MVNOs would only need to
negotiate with traditional carriers that have excess capacity to sell.
Freedom from the challenges of owning and maintaining the
radio transmission equipment allows MVNOs to focus on creating
and maintaining services that attract and keep customers. 201
SERVICE PROVIDERS OF THE FUTURE
Service providers or carriers have existed in the past by charging
for voice calls made on systems that use licensed spectrum.
The cost of this spectrum is increasing, with huge amounts of
money being paid for 3G spectrum to enable high-speed data
services in addition to quality voice calls.
But licensed spectrum won’t be enough for the service
operator of the future. Value for wireless consumers will come
from carriers that can provide end-to-end connectivity across
both licensed and unlicensed spectrum. As wireless connectivity
becomes more of a commodity, carriers will focus more on
other aspects of service such as security, privacy, storage, and
network intelligence features.
As we move towards 3G another type of service provider
model will emerge, the Mobile Virtual Network Operator
(MVNO). MVNOs will own no spectrum but will own or operate
switches, customer care and billing systems that connect
into another provider’s radio system.
for voice calls made on systems that use licensed spectrum.
The cost of this spectrum is increasing, with huge amounts of
money being paid for 3G spectrum to enable high-speed data
services in addition to quality voice calls.
But licensed spectrum won’t be enough for the service
operator of the future. Value for wireless consumers will come
from carriers that can provide end-to-end connectivity across
both licensed and unlicensed spectrum. As wireless connectivity
becomes more of a commodity, carriers will focus more on
other aspects of service such as security, privacy, storage, and
network intelligence features.
As we move towards 3G another type of service provider
model will emerge, the Mobile Virtual Network Operator
(MVNO). MVNOs will own no spectrum but will own or operate
switches, customer care and billing systems that connect
into another provider’s radio system.
SERVICE PROVIDERS OF THE FUTURE
Service providers or carriers have existed in the past by charging
for voice calls made on systems that use licensed spectrum.
The cost of this spectrum is increasing, with huge amounts of
money being paid for 3G spectrum to enable high-speed data
services in addition to quality voice calls.
But licensed spectrum won’t be enough for the service
operator of the future. Value for wireless consumers will come
from carriers that can provide end-to-end connectivity across
both licensed and unlicensed spectrum. As wireless connectivity
becomes more of a commodity, carriers will focus more on
other aspects of service such as security, privacy, storage, and
network intelligence features.
As we move towards 3G another type of service provider
model will emerge, the Mobile Virtual Network Operator
(MVNO). MVNOs will own no spectrum but will own or operate
switches, customer care and billing systems that connect
into another provider’s radio system.
for voice calls made on systems that use licensed spectrum.
The cost of this spectrum is increasing, with huge amounts of
money being paid for 3G spectrum to enable high-speed data
services in addition to quality voice calls.
But licensed spectrum won’t be enough for the service
operator of the future. Value for wireless consumers will come
from carriers that can provide end-to-end connectivity across
both licensed and unlicensed spectrum. As wireless connectivity
becomes more of a commodity, carriers will focus more on
other aspects of service such as security, privacy, storage, and
network intelligence features.
As we move towards 3G another type of service provider
model will emerge, the Mobile Virtual Network Operator
(MVNO). MVNOs will own no spectrum but will own or operate
switches, customer care and billing systems that connect
into another provider’s radio system.
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