The Great Debate UK

- Ken Denman is CEO of Openwave Systems. The opinions expressed are his own. -

The stressed state of mobile networks has become front page news as entire urban areas experience sluggish connection speeds and complete service disruptions. The latest holiday outages don’t just make great headlines, they highlight the mobile operator’s ongoing struggle to cope with runaway demand for data services.

Operators’ top priority must be figuring out how to better manage the influx of data traffic. Even as they migrate to the next generation of IP-based, 4G networks, they must account for the long-term implications of “all you can eat” service plans which could push these new networks to capacity in very little time.

In the short term, operators can take immediate action to ensure they are fully optimising their network bandwidth to dynamically support all types of data: messaging, internet and especially video traffic.  In the longer term, even with 4G deployments underway, intelligent bandwidth management will be of paramount importance to protect these costly investments.

Some operators are starting to move towards tiered usage models as with home broadband services. If so, they must decide how to migrate their users to new pricing structures without causing churn. As is increasingly the case with congestion on our roads, operators will need to assess consumption-based pricing capabilities and related plans to help keep traffic flowing. The answer may lie in metered usage based on time of day, class of service or specific content type. Customers could be provided with custom speed access (Quality of Service) to their favorite social networking sites.  This type of micro segmentation is rich with possibilities, but requires a level of intelligent policy management many operators don’t yet have.

To successfully manage and monetise traffic, operators must be equipped to analyse the data that is flowing through their networks: who is consuming what content, and why they are using it. Smart operators will be able to distinguish themselves from their competitors by offering premium services to premium customers based on this laser-focused insight.

Further, operators need to assess how they can further monetise the use of their networks beyond just charging for access and transport. Mobile operators have the potential to add value, not just to their subscribers, but also to content providers and other ecosystem partners.

The scale of the challenge facing the mobile industry is immense and time is of the essence. It is paramount that operators consider how their networks will withstand skyrocketing demand, and further, how they can monetise it. Some have started, but more need to follow.