The latest white paper from Telcordia, Mobile Broadband: Surf the Broadband Wave with a Customer-Centric Business Model, has identified the major reasons why mobile broadband’s popularity is both an opportunity and challenge for operators. Although data ARPU has increased steadily over the past several years, the burden on the network has grown at an even faster rate.
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“The popularity of video and other third-party OTT services are breaking mobile broadband networks and business models because they siphon off revenue while adding to the network’s workload,” said Pat McCarthy, Vice-President, Marketing, Service Delivery Solutions, Telcordia. “Operators should use this problem as an opportunity to transform themselves from dumb pipes into value-added players that capture revenue from OTT personalization services.”
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According to McCarthy, operators must distinguish between different types of traffic and properly prioritize them. For example, personalized end-user services that generate revenue for an operator and its business partners should enjoy priority access to network resources, while zero-revenue OTT content should be managed with a tiered bandwidth management solution.
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