Skip to main navigation

Inside Telecommunications: 1Q 2012 trends - Service innovations in the telecoms sector - EY - Global

Inside Telecommunications: 2Q 2012 trends

Service innovations in the telecoms sector

  • Share

Figure 1. Company policies towards personal mobile devices

Figure 2. Average number of mobile projects undertaken by businesses

Figure 3. Global consumer video traffic forecast

Operators are attempting to adapt to a market where consumers are aggregating more and more devices.

Enterprise mobility evolves as workers bring their own devices

The bring-your-own-device (BYOD) phenomenon is transforming the provisioning landscape. It is creating opportunities and challenges in terms of application support, cost reduction and IT security while stimulating spend in related areas such as unified communications.

The “consumerization” of IT is itself compounded by the predicted rise in remote working. The number of mobile workers worldwide is set to reach 1.3b by 2015. A host of telecom and technology providers are looking to take advantage of new mobility demands from business.

Despite the promise of reduced costs, consumer devices in the workplace spark security concerns. In April, Vodafone UK launched a security and tracking service for mobile devices to connect to corporate networks aimed at medium and large businesses. It features a BYOD option that supports all major mobile operating systems.

Figure 1. Company policies towards personal mobile devices

Source: Spiceworks, SMB IT Security Survey, Spiceworks website, May 2012

Given the wide spectrum of IT device policies, operator solutions are also exploiting this middle ground between BYOD and company-issued terminals. In May, Verizon Enterprise Solutions announced a new solution featuring enterprise tablets that come preconfigured with the carrier’s Private Applications Store for Business containing business-specific applications their employers preapproved.

Operators must also work more closely with vendor partners. In April, HP launched a new Enterprise Mobility platform, designed to help businesses support the use of smartphones and tablets, which will be sold via operators as well as direct to enterprise customers.

Figure 2. Average number of mobile projects undertaken by businesses

Figure 2

Source: Antenna Software, “Mobile Business Forecast For Marketers 2012,” Antenna Software website, 18 June 2012

Sizing operator ambitions in content delivery networks

Content delivery network (CDN) strategies are becoming more important for both telecoms operators and technology specialists. With customers using a wider variety of devices, multi-screen service provider strategies and the rise in m-commerce, content providers face new demands in transmitting content.

Figure 3. Global consumer video traffic forecast

Figure 2

Source: Cisco, “Cisco Visual Networking Index: Forecast and Methodology, 2011–2016,” Cisco website, 30 May 2012

However, the data delivery model, which involves content carriage across multiple networks, risks undermining the customer experience. CDNs that deploy internet content from servers closer to the end user can boost content availability, reduce page load times and reduce bandwidth costs.

Many IP carriers have moved into the CDN market in recent years, while many telecoms vendors now integrate CDN capabilities into their routing platforms. Capacity increases are important for operators with their own CDN assets.

Many IP carriers have moved into the CDN market in recent years, while many telecoms vendors now integrate CDN capabilities into their routing platforms. Capacity increases are important for operators with their own CDN assets.

The mobile CDN market is less mature but set to grow strongly. Repurposing content for device form factors and network coverage issues have historically taken precedence over content delivery concerns. However, growth in smartphone and tablet usage means that CDNs are now seeking to locate their servers inside mobile networks. Mobile operators are also developing their own CDN strategies.

Looking ahead

Going forward, CDNs represent added value for service providers involved in content delivery. The involvement of content publishers also sidesteps regulatory concerns that accompany video traffic management solutions. Content distributors may also start taking their CDNs in-house.

In terms of business models, some telcos favor a reseller approach while others are either licensing technology or building out their own CDNs. CDN capabilities offered by operators with enterprise arms are likely to form part of broader propositions also featuring cloud- and VPN-based services.

Focusing on specific customer needs will be a must. The pace of technology change also means CDN strategies require ongoing refinement.


<< Previous | Next >>

Contents

Subscribe

Download Inside Telecommunications: 2Q 2012  as a printable document

Previous editions

Contact us

Back to top