• MOST READ

• LATEST NEWS

Continued ...

However, while all this is a powerful service differentiator for a mobile operator trying to grab consumer mindshare in a market where all operators have identical network capabilities, the ability to boost ARPU through a subsidised laptop offering is more challenging and will only be achievable by certain cellular providers. Going back to the Nokia N-series phone; an operator will be inclined to generously subsidise such a device since the multimedia (music, video, camera etc.) and navigation features mean a user is more likely to consume data and premium content. The same cannot be said for a notebook unless the operator, like AOL, has a portfolio of online collateral which it can channel the laptop user towards. A few mobile operators do have such collateral - Orange is perhaps the best example and has resulted from the France Telecom ownership of the pan-European Wanadoo ISP which has now been completely re-branded as Orange.

It will be interesting to see how the operator laptop subsidy plays out. T-Mobile toyed with such an offering last year in Germany, and discussions with two other mobile carriers show they're not averse to such a concept. One scenario is that mobile operators which also have an ISP business in a local market (e.g. Deutsche Telekom/T-Mobile in Germany, Orange in France and the UK, Telefonica in Spain and TIM in Italy) adopt the laptop-subsidy model primarily to keep their ISP business competitive. However, as a result, competing mobile operators may feel compelled to offer a similar laptop-subsidy package to remain competitive.

Such an eventuality would speed the day when consumers no longer pay - or expect to pay - for any of their terminal devices, be it a set-top box, WiMAX router, laptop, mobile phone or gaming console.

Pages: 1 | 2

COMMENTS

No comments yet. Be the first to add a comment!

Carrier Broadband Performance: Africa & Middle East
Carriers are using mobile broadband as their weapon of choice in the fight against the commoditization of voice and falling ARPU. This...

Voice over LTE: Market Analysis and Forecasts
VoLTE offer unique advantages in lowering a carrier's voice infrastructure economics and promises to improve voice quality, device...