Monday, May 24, 2010

The 'Cost per Bit' issue...

Cost per bit has always been an issue from operator point of view. The other day an operator tried to show a comparison of data transfer with SMS. Though this may make some of us feel guilty that we are ripping these poor operators off ;) in reality most of us agree that it is the other way round.

A slightly older report from Ericsson suggested that from operator point of view, 1GB data transfer can cost as low as 1 euro.

So if we now plug in the above information into the slide below, presented by Moray Rumney of Agilent in the LTE World Summit, we can see that the operators have been earning massive profits on our behalf.



With Mobile broadband becoming more common and cheaper, users may not be willing to pay any more than they are now. At the same time, they may expect the speeds to keep increasing at regular intervals. The operators will soon be forced (if not already doing so) to offer QoS based packages which can help them boost their revenue and provide better QoE to the higher paying users.

I will cover this issue of QoS, QoE and DPI in the upcoming posts.

If you are wondering along the lines of how to reduce this cost per bit then I would recommend you to go back and have a look at this discussion on Martin Sauter's blog.
If you are thinking along the lines of increasing ARPU with LTE, then please see my presentation here.

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