Mobile video is on the rise globally. While it represents a growth driver for mobile operators, the service also consumes more bandwidth than any other application.
As usage increases, operators will need to examine new service definitions to handle growth. To help operators define potential mobile video service plans, Tekelec conducted primary research in conjunction with Strategy Analytics in December 2010. The online survey, which was conducted with 280 respondents in eight European countries, gauges user views regarding the relative value of mobile video as well as their reaction to various pricing models. Several key observations were derived from the survey:
- While video consumes nearly half of mobile bandwidth, consumers valued video as only the fourth most important service behind web browsing, email and navigation.
- Usage-based billing is not the ideal solution to manage many subscribers’ increased usage of mobile broadband.
- There is an opportunity for “win-win” service plans that lower costs by restricting usage of lower value/higher cost applications like video while allowing unlimited usage of higher value/lower cost applications like web browsing. Almost half of subscribers would pay a 17 percent premium over their current service for such a plan.
- Premium video services like live television and video-on-demand (VOD) can be a source of additional value, but the incremental cost to deliver service must be weighed against the potential increase in revenue.
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