Welcome!

Microservices Expo Authors: Elizabeth White, Cameron Van Orman, Jason Bloomberg, Pat Romanski, Flint Brenton

Related Topics: Mobile IoT, Microservices Expo, Agile Computing, Wearables, Cloud Security, SDN Journal

Mobile IoT: Article

The Rapidly Changing Mobile Landscape

2013 predictions for the telco industry

The telecom industry will be challenged in the coming year as operators learn to adapt to the rapidly changing mobile landscape.

2012 was the year of mobile - big brands and Internet companies have just started to realize the potential impact that mobile communications can have on their engagement with consumers. I expect the mobile trend will continue in 2013, with SMS being the most rapidly changing application. Competition between operators and Internet companies will cause these two distinct worlds to work together in different ways. With this in mind, the following are my 2013 predictions for the telco industry.

We will witness a rebirth of SMS.
In times of crisis or low network connectivity, SMS remains the go-to communication mechanism. In the aftermath of Hurricane Sandy, residents in the northeastern U.S. lost power for days, making the task of voting in the Presidential election a difficult undertaking. To help voters find the nearest polling station, Google set up a custom instance of an SMS-based locator for voters. When disaster strikes, SMS has a major advantage over voice, OTT services and email. This time next year, rather than focusing on "the death of SMS," we'll be discussing "the rebirth of SMS" thanks to its proven reliability and interoperability in times of crisis.

Google and Facebook will take over the world with SMS.
Picking up where they left off in 2012, the world's two biggest Internet players will demonstrate the power of SMS as they spread connectivity into developing countries. With the successful launch of Google Gmail SMS in Ghana, Nigeria and Kenya, users can manage their email via text message by activating a simple setting on their Gmail account. Google+ SMS also allows users to update their status via text message.

Similarly, Facebook is using SMS to extend their reach into developing countries. For example, "only" 5 percent of the population in Africa and 7 percent in Asia have access to Facebook. Meanwhile, Facebook maintains 45 percent market share in North America and 30 percent in Europe. With the mounting pressure from shareholders, these developing markets present a huge opportunity for the social giant to expand its footprint even further.

LTE will drive down the price of devices and access: a winning combination for consumers.
Today, consumers must look no further than their local BestBuy or Apple store to purchase an iPhone or SIM-free smartphone and obtain the data and access separately. LTE will only compound this trend, as mobile operators will increasingly be regarded as a data pipe. Consumers will continue to experience savings and access to new applications while operators will compete with each other on price, speed and better coverage. In 2013, we expect to see four distinct shifts with mobile operators:

  • Device sales will drop and margins on existing devices will narrow.
  • Operators will try to compensate for lower device sales by attracting users with "access" to their network.
  • To prevent further revenue loss, operators will focus on fostering existing billing relationships with customers.
  • Operators will be forced to "go all in" and invest heavily in LTE, thereby weeding out smaller carriers and positioning larger operators with deeper pockets on top.

RCS-e will fail.
The goal of the GSMA's RCS-e standard aims to help operators offer OTT services such as Instant Messaging, chat, video sharing and file transfer using their existing networks. However, there are four key hurdles that we believe will prevent the initiative from succeeding:

  • Late to Market: RCS-e will be hard pressed to compete with services already being used by existing standards and platforms.
  • Little to No Differentiation: While the likes of WhatsApp and Viber have already developed their services, it will be an uphill battle for RCS-e-based services such as Joyn to match what is out there already. There is no compelling argument to switch.
  • Lack of interoperability: RCS-e requires compatible handsets and network infrastructure. As neither of these are widespread, RCS-e will not work on an international scale for some time so it will be less attractive than the existing OTT offerings.
  • Operator-Dependent Business Model: RCS-e is competing against what are now OTT brand names, which offer their service for free or a minimal charge. The dependence on operators to create RCS-e interoperability is a huge hurdle, and will likely make it economically unattractive for subscribers before services have even launched.

Cross-industry alliances between Web 2.0 companies and carriers will be on the rise.
The lure of mobile for new media companies and vice versa will lead to a massive increase in partnerships with carriers. We have already witnessed a number of deals that indicate that this trend is already underway. Verizon now offers Skype mobile VoIP service for 3G smartphone customers while also offering mobile with video on its 4G LTE Mobile Broadband network. Messaging giant WhatsApp has also partnered with 3 Hong Kong for the provision of a WhatsApp-branded mobile data plan and roaming package. In addition, WhatsApp has struck another deal with Indian operator Reliance Communications to bring WhatsApp to college kids for free as part of its MyCollegePlan. Driven by the prospect of the "next big revenue-generator" in the form of mobile services and mobile advertising, in 2013 we will see many more alliances being forged across industries and through the carrier value chain.

Network instability will continue despite the promise of 4G.
Consumers have an insatiable appetite for newer, faster and more reliable access to technology. But the cost of shorter technology lifecycles is usually network instability. Shorter lifecycles mean less time to recoup the operators' investment, which means less testing and lower quality, all of which point to worsening service for consumers - a true dichotomy of supply and demand. While 2G maintained its rank as the industry standard for over a decade, 3G came and went and has already reached the end of its life cycle in half the time. Furthermore, the sheer volume of Internet-ready devices is contributing to the demise of the wireless data spectrum. As a result, smartphone users can expect to experience slower service and dropped connections.

With the emergence of free or low cost messaging services and OTT players, mobile operators have been forced to innovate, rather than rely on traditional voice and SMS services. As revenues are continually threatened, carriers will reevaluate their business models and search for new revenue-generating markets and partnerships. As a result of this innovation, 2013 will prove to be a favorable year for mobile users. Consumers will experience lower prices and new applications as operators and Internet companies compete for market share.

More Stories By Thorsten Trapp

Thorsten Trapp is Co-Founder and CTO of tyntec. He co-founded tyntec in 2002 together with Dr. Ralph Eric Kunz and developed the company's Mobile Messaging platform architecture. He is also responsible for tyntec's technical innovations and intellectual property.

A communications and software expert, Mr. Trapp founded his own IT services company in 1995. He then expanded his experience in the development and hosting of scalable internet server platforms to the conception and implementation of infrastructure for mobile data transport. Thorsten studied computer science and biology at the Technical University of Dortmund.

Comments (0)

Share your thoughts on this story.

Add your comment
You must be signed in to add a comment. Sign-in | Register

In accordance with our Comment Policy, we encourage comments that are on topic, relevant and to-the-point. We will remove comments that include profanity, personal attacks, racial slurs, threats of violence, or other inappropriate material that violates our Terms and Conditions, and will block users who make repeated violations. We ask all readers to expect diversity of opinion and to treat one another with dignity and respect.


@MicroservicesExpo Stories
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reducti...
DevSecOps – a trend around transformation in process, people and technology – is about breaking down silos and waste along the software development lifecycle and using agile methodologies, automation and insights to help get apps to market faster. This leads to higher quality apps, greater trust in organizations, less organizational friction, and ultimately a five-star customer experience. These apps are the new competitive currency in this digital economy and they’re powered by data. Without ...
Is advanced scheduling in Kubernetes achievable? Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, will answer these questions and demonstrate techniques for implementing advanced scheduling. For example, using spot instances ...
With the modern notion of digital transformation, enterprises are chipping away at the fundamental organizational and operational structures that have been with us since the nineteenth century or earlier. One remarkable casualty: the business process. Business processes have become so ingrained in how we envision large organizations operating and the roles people play within them that relegating them to the scrap heap is almost unimaginable, and unquestionably transformative. In the Digital ...
With the rise of DevOps, containers are at the brink of becoming a pervasive technology in Enterprise IT to accelerate application delivery for the business. When it comes to adopting containers in the enterprise, security is the highest adoption barrier. Is your organization ready to address the security risks with containers for your DevOps environment? In his session at @DevOpsSummit at 21st Cloud Expo, Chris Van Tuin, Chief Technologist, NA West at Red Hat, will discuss: The top security r...
The nature of the technology business is forward-thinking. It focuses on the future and what’s coming next. Innovations and creativity in our world of software development strive to improve the status quo and increase customer satisfaction through speed and increased connectivity. Yet, while it's exciting to see enterprises embrace new ways of thinking and advance their processes with cutting edge technology, it rarely happens rapidly or even simultaneously across all industries.
Most of the time there is a lot of work involved to move to the cloud, and most of that isn't really related to AWS or Azure or Google Cloud. Before we talk about public cloud vendors and DevOps tools, there are usually several technical and non-technical challenges that are connected to it and that every company needs to solve to move to the cloud. In his session at 21st Cloud Expo, Stefano Bellasio, CEO and founder of Cloud Academy Inc., will discuss what the tools, disciplines, and cultural...
These days, APIs have become an integral part of the digital transformation journey for all enterprises. Every digital innovation story is connected to APIs . But have you ever pondered over to know what are the source of these APIs? Let me explain - APIs sources can be varied, internal or external, solving different purposes, but mostly categorized into the following two categories. Data lakes is a term used to represent disconnected but relevant data that are used by various business units wit...
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
‘Trend’ is a pretty common business term, but its definition tends to vary by industry. In performance monitoring, trend, or trend shift, is a key metric that is used to indicate change. Change is inevitable. Today’s websites must frequently update and change to keep up with competition and attract new users, but such changes can have a negative impact on the user experience if not managed properly. The dynamic nature of the Internet makes it necessary to constantly monitor different metrics. O...
Agile has finally jumped the technology shark, expanding outside the software world. Enterprises are now increasingly adopting Agile practices across their organizations in order to successfully navigate the disruptive waters that threaten to drown them. In our quest for establishing change as a core competency in our organizations, this business-centric notion of Agile is an essential component of Agile Digital Transformation. In the years since the publication of the Agile Manifesto, the conn...
Many organizations are now looking to DevOps maturity models to gauge their DevOps adoption and compare their maturity to their peers. However, as enterprise organizations rush to adopt DevOps, moving past experimentation to embrace it at scale, they are in danger of falling into the trap that they have fallen into time and time again. Unfortunately, we've seen this movie before, and we know how it ends: badly.
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
Many organizations adopt DevOps to reduce cycle times and deliver software faster; some take on DevOps to drive higher quality and better end-user experience; others look to DevOps for a clearer line-of-sight to customers to drive better business impacts. In truth, these three foundations go together. In this power panel at @DevOpsSummit 21st Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, industry experts will discuss how leading organizations build application success from all...
The last two years has seen discussions about cloud computing evolve from the public / private / hybrid split to the reality that most enterprises will be creating a complex, multi-cloud strategy. Companies are wary of committing all of their resources to a single cloud, and instead are choosing to spread the risk – and the benefits – of cloud computing across multiple providers and internal infrastructures, as they follow their business needs. Will this approach be successful? How large is the ...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
"NetApp's vision is how we help organizations manage data - delivering the right data in the right place, in the right time, to the people who need it, and doing it agnostic to what the platform is," explained Josh Atwell, Developer Advocate for NetApp, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
One of the biggest challenges with adopting a DevOps mentality is: new applications are easily adapted to cloud-native, microservice-based, or containerized architectures - they can be built for them - but old applications need complex refactoring. On the other hand, these new technologies can require relearning or adapting new, oftentimes more complex, methodologies and tools to be ready for production. In his general session at @DevOpsSummit at 20th Cloud Expo, Chris Brown, Solutions Marketi...