Welcome!

Microservices Expo Authors: Carmen Gonzalez, Derek Weeks, Elizabeth White, Pat Romanski, Liz McMillan

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
Internet of @ThingsExpo, taking place June 6-8, 2017 at the Javits Center in New York City, New York, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @ThingsExpo New York Call for Papers is now open.
When building DevOps or continuous delivery practices you can learn a great deal from others. What choices did they make, what practices did they put in place, and how did they connect the dots? At Sonatype, we pulled together a set of 21 reference architectures for folks building continuous delivery and DevOps practices using Docker. Why? After 3,000 DevOps professionals attended our webinar on "Continuous Integration using Docker" discussing just one reference architecture example, we recogn...
When you focus on a journey from up-close, you look at your own technical and cultural history and how you changed it for the benefit of the customer. This was our starting point: too many integration issues, 13 SWP days and very long cycles. It was evident that in this fast-paced industry we could no longer afford this reality. We needed something that would take us beyond reducing the development lifecycles, CI and Agile methodologies. We made a fundamental difference, even changed our culture...
The proper isolation of resources is essential for multi-tenant environments. The traditional approach to isolate resources is, however, rather heavyweight. In his session at 18th Cloud Expo, Igor Drobiazko, co-founder of elastic.io, drew upon his own experience with operating a Docker container-based infrastructure on a large scale and present a lightweight solution for resource isolation using microservices. He also discussed the implementation of microservices in data and application integrat...
Containers have changed the mind of IT in DevOps. They enable developers to work with dev, test, stage and production environments identically. Containers provide the right abstraction for microservices and many cloud platforms have integrated them into deployment pipelines. DevOps and containers together help companies achieve their business goals faster and more effectively. In his session at DevOps Summit, Ruslan Synytsky, CEO and Co-founder of Jelastic, reviewed the current landscape of Dev...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at Logz.io, will explore the value of Kibana 4 for log analysis and will give a real live, hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He will examine three use cases: IT operations, business intelligence, and security and compliance. This is a hands-on session that will require participants to bring their own laptops, and we will provide the rest.
"We're bringing out a new application monitoring system to the DevOps space. It manages large enterprise applications that are distributed throughout a node in many enterprises and we manage them as one collective," explained Kevin Barnes, President of eCube Systems, in this SYS-CON.tv interview at DevOps at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
As the race for the presidency heats up, IT leaders would do well to recall the famous catchphrase from Bill Clinton’s successful 1992 campaign against George H. W. Bush: “It’s the economy, stupid.” That catchphrase is important, because IT economics are important. Especially when it comes to cloud. Application performance management (APM) for the cloud may turn out to be as much about those economics as it is about customer experience.
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
Updating DevOps to the latest production data slows down your development cycle. Probably it is due to slow, inefficient conventional storage and associated copy data management practices. In his session at @DevOpsSummit at 20th Cloud Expo, Dhiraj Sehgal, in Product and Solution at Tintri, will talk about DevOps and cloud-focused storage to update hundreds of child VMs (different flavors) with updates from a master VM in minutes, saving hours or even days in each development cycle. He will also...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that Dataloop.IO, an innovator in cloud IT-monitoring whose products help organizations save time and money, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Dataloop.IO is an emerging software company on the cutting edge of major IT-infrastructure trends including cloud computing and microservices. The company, founded in the UK but now based in San Fran...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 7-9, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and E...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
The unique combination of Amazon Web Services and Cloud Raxak, a Gartner Cool Vendor in IT Automation, provides a seamless and cost-effective way of securely moving on-premise IT workloads to Amazon Web Services. Any enterprise can now leverage the cloud, manage risk, and maintain continuous security compliance. Forrester's analysis shows that enterprises need automated security to lower security risk and decrease IT operational costs. Through the seamless integration into Amazon Web Services, ...
Software development is a moving target. You have to keep your eye on trends in the tech space that haven’t even happened yet just to stay current. Consider what’s happened with augmented reality (AR) in this year alone. If you said you were working on an AR app in 2015, you might have gotten a lot of blank stares or jokes about Google Glass. Then Pokémon GO happened. Like AR, the trends listed below have been building steam for some time, but they’ll be taking off in surprising new directions b...
A lot of time, resources and energy has been invested over the past few years on de-siloing development and operations. And with good reason. DevOps is enabling organizations to more aggressively increase their digital agility, while at the same time reducing digital costs and risks. But as 2017 approaches, the hottest trends in DevOps aren’t specifically about dev or ops. They’re about testing, security, and metrics.
You often hear the two titles of "DevOps" and "Immutable Infrastructure" used independently. In his session at DevOps Summit, John Willis, Technical Evangelist for Docker, covered the union between the two topics and why this is important. He provided an overview of Immutable Infrastructure then showed how an Immutable Continuous Delivery pipeline can be applied as a best practice for "DevOps." He ended the session with some interesting case study examples.
Software delivery was once specific to the IT industry. Now, Continuous Delivery pipelines are used around world from e-commerce to airline software. Building a software delivery pipeline once involved hours of scripting and manual steps–a process that’s painful, if not impossible, to scale. However Continuous Delivery with Application Release Automation tools offers a scripting-free, automated experience. Continuous Delivery pipelines are immensely powerful for the modern enterprise, boosting ...