Subscribers have spoken and data is the new voice. Operators are grappling with voice consumption peaking and declining average revenue per user (ARPU), resulting in carrier focus shifting to delivery of high-speed data services. Third-generation (3G) mobile phone experiences are acceptable, providing good audio quality, small form-factor and long battery life. Next-generation radio technology to satisfy delivery of broadband content and applications — previously available only in the home or office — are ready now. These fourth-generation (4G) mobile communications systems promise a swift departure from 3G and the legacy cell phone. In advance of a formal blessing for 4G technical standards by the United Nations’ ITU-R committee in 2010, the first commercial contender is WiMAX (News - Alert). The competing LTE protocol is expected commercially in the 2010–2011 timeframe. What makes this next-generation a leap beyond 3G and the economic challenge of voice?
Similar to the concept of Web 2.0, 4G services are about the experience. Content and applications typically found on the personal computer are now available on mobile WiMAX devices anytime and anywhere. These new wireless systems are based on the same Internet standards used for home and office broadband, rather than walled-garden mobile voice networks. Cellular networks are optimized into several small spectrum channels for voice calls. Mobile broadband protocols, such as WiMAX, achieve multi-megabit performance using a larger amount of spectrum. In broadband networks, voice becomes another application transported over the larger pipe. Greater data capacity to each subscriber means a wider variety of applications and revenue-bearing services.
Mobile operators are eager to migrate to 4G because it shifts the behavior of where users consume applications. Transferring the use of Internet applications to a computing device on the person creates a greater percentage of eyeballs using the carrier’s service in more places. The installed base of laptop computers are the first to gain this capability through the addition of a peripheral aircard or dongle. The emergence of netbooks and ultra-mobile computers from Acer, ASUS, Dell, Lenovo, Panasonic, Samsung, Sony and Toshiba (News - Alert) also include WiMAX options. As services proliferate, specialized consumer electronics products fill the need for vertical applications, including mobile Internet devices, home gateways, multiplayer gaming systems, along with vehicle information and entertainment systems.
New bandwidth-hungry applications are gearing up for broader availability of mobile broadband data. Camera-enabled 4G devices transmit real-time audio and video to a media streaming site that broadcasts it to an audience or stores it on a network server. Why is this mobile form of video conferencing valuable? One parent can attend a child’s sporting event or school activity while simultaneously sharing it with family members anywhere in the world. Dashboard cameras in public safety vehicles collect evidence at incidents. A broader digital history of community and society forms as citizen journalists contribute content. These “lifecasting” events pair the broadband uplink speeds of WiMAX with location awareness to drive demand for data, while retaining voice services.
The advent of the iPhone is an evolutionary step towards an open mobile Web experience, though it remains a closed device on a closed cellular network. Apple (News - Alert) succeeded in delivering a platform with a reasonable screen size that serves as a Web browser, 3G phone, and integrated music player. With all that goodness in a small case, it falls short of the open device on an open network that compels users to migrate usage to a mobile network. Complaints of inconsistent 3G coverage, Internet performance judged using an unrestricted WiFi (News - Alert) connection and crashes like a computer operating system have tainted initial experiences to the “open” movement.
Beyond any device or performance shortcomings, a truly open network is missing from 3G business models. One cannot stream NPR audio on the open Android (News - Alert)-powered device using the closed T-Mobile network. Users crave an experience like DSL where any application is available at all times. Operators seeking to monetize data services are pursuing tiered performance tariffs and valuable lifestyle applications for security, education, television, audio/video, image and content storage, and multi-player gaming. It’s time for operators to sign off on the 4G business plan and lay claim to their data market. Edited by
Greg Galitzine
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