22% of device subscription revenues to come from operator-branded premium services
Total 4G mobile consumer service revenue, including mobile internet services is expected to exceed $70bn worldwide in 2014, according to ABI Research.
The firm said that a substantial 22% of device subscription revenues will come from suites of operator-branded premium services. The 4G services will be optimised to enable a proliferation of mobile devices including smartphones, netbooks and PNDs and many operators will be offering pooled device subscriptions.
Philip Solis, practice director at ABI Research, said: “Operators of 4G networks will refuse to be marginalized as ‘dumb data pipe’ service providers. Instead, they will offer suites of ‘smart services’ – some internally developed, others via partnerships with third party suppliers – that will be provided over ‘smart networks’ enabled with all-IP technologies, IMS infrastructure and cloud-based storage.”
The study showed that the internet access service will be main in the segment, while suite of premium services will collectively drive consumer adoption, revenues and profits including location services such as turn-by-turn directions and POIs; multimedia services, such as VoD and P2P video sharing; media broadcast services, such as pay-per-view TV and digital radio; and gaming services, such as multi-player and augmented reality games.
The Web 3.0 services will be integrated with Web 2.0 features and will be delivered simultaneously to PCs, TVs and mobile devices over the internet, cable networks and wireless networks, the firm said.
Solis added: “Operators will take advantage of this market opportunity by breaking down their walls and building open ecosystems. They will partner with third-party service providers from whom they can license and re-brand services; they’ll work with network and handset OEMs to influence infrastructure and device specs; and they’ll join ecosystem development organisations, such as Alcatel-Lucent’s ng Connect program.”