In the United States, three large cellular-service providers offer mobile broadband services on their networks. Sprint and Verizon are both CDMA networks, so their services are based on EV-DO technology. AT&T, formerly Cingular, is a GSM network, so it’s offering an HSDPA mobile broadband service.

coffee shop

Mobile broadband services provide fast and easy ways to connect even from coffee shops.

All three of these companies have built nationwide cellular networks. But not every part of the network is created equal. If you’re in a major metropolitan area, then you’ll have the most data services available to you. But if you’re out in a rural area, you may be limited to simply making phone calls or browsing the Web at dial-up speeds.

For example, AT&T’s mobile broadband service is called BroadbandConnect. With BroadbandConnect, you can send e-mails, instant messages, browse the Web at speeds between 400 and 700Kbps, watch TV shows, and even record and share live video during a phone call.

But to access all of these BroadbandConnect services, you need to be within coverage range of AT&T’s 3G network. Right now, that’s confined to the nation’s largest cities. If you’re outside of that coverage area, you can still access some data services like e-mail, text messaging and Web browsing, but at speeds between 75 and 135Kbps.

Sprint and Verizon’s services are the same. With Sprint’s mobile broadband service, you can use your cell phone to send e-mails, listen to streaming radio stations, download songs and music videos, watch live TV, share photos, play games and browse the Web at speeds between 600Kbps and 1.4Mbps (megabytes per second).

But like AT&T, the most data services and the best connection speeds are only available in 3G coverage areas, which are usually found in the nation’s biggest cities. On the fringes of these coverage areas are mobile broadband roaming areas, which offer limited multimedia and data services. Even further outside major cities is the regular Sprint nationwide cellular network, with basic data services and connection speeds between 50 and 70Kbps, similar to dial-up.

What you pay to access these mobile broadband networks depends on what device you’re going to use. There are four basic options for connecting to a 3G network:

  • 3G cell phone
  • PDA/smartphone
  • laptop computer with a PC card
  • laptop computer using a cell phone as a modem

For each of these options, the cellular providers offer several different mobile broadband payment plans. There’s usually an option for unlimited monthly access, which is the most expensive plan. Another option is to pick a plan that allows for a maximum amount of data transfer a month. Sprint, for example, has an option for laptop users to pay $39.99 a month for 40MB (megtabytes) of data transfer over the network. Verizon has a 5GB (gigabyte) plan for $59.99 a month. To give you an idea of what that means, Verizon says you could send 1,747,627 e-mails a month before reaching 5GB, or look up nearly 35,000 Web pages

Cellular providers generally package their mobile broadband services for cell phone users. Sprint’s package is called Power Vision and AT&T’s is called MEdia Net. You pay extra for these packages on top of your regular calling plan. Or you can sign up for an all-inclusive plan that gives you a certain amount of anytime minutes per month, plus unlimited mobile broadband usage. With a PDA or smartphone, you can choose from unlimited or maximum data usage plus a voice-calling plan.

If you don’t want to sign up for a monthly plan, you can actually pay by the kilobyte of data transfer. Sprint, for example, charges three cents a kilobyte for mobile broadband access without a monthly plan.

Now let’s break down the terms and fees of a mobile broadband plan.

Terms and Fees of Mobile Broadband Services

Mobile broadband is a brand new technology, so expect to pay a premium to use it. Like all cellular services, mobile broadband requires a one- or two-year contract. If you cancel the contract early, the cellular provider can charge an early termination fee up to $200.

card

Most mobile broadband services require the use of a card, that allows users to access the Internet.

If you’re going to use a cell phone for mobile broadband access, you might also need to buy a new phone. Cellular providers require that you use certain phones to access certain services. If you want to sign up for AT&T’s BroadbandConnect service, for example, you’ll choose from a dozen or so phones that have the right hardware and software to handle Web browsing and multimedia playback. And if you don’t sign up for an all-inclusive voice and data plan, then you’ll have to sign up for some kind of voice plan in addition to the mobile broadband contract.

The nice part is that the cellular providers often offer steep rebates and discounts when you buy a phone with a voice or data plan. Some phones and PC cards are even free after all of the instant discounts, online savings and mail-in rebates.

Make sure you read your mobile broadband contract closely and pay attention to all of the surcharges and taxes that apply. When you’re quoted a monthly charge of $39.99 a month, that doesn’t include any of the extra fees that will show up on your monthly bill. Let’s talk about a few of them:

  • Most cellular service contracts come with a one-time activation fee of around $35.
  • Some contracts require a deposit. Depending on your credit history, that deposit could be as low as $50 or as high as $1,000.
  • Cellular services are subject to state and local taxes. Depending on where you live, those could add between 4 and 35 percent to your monthly bill.
  • Phone companies are required to contribute to a federal fund for providing phone access to low-income individuals and families. This is called the Universal Service Fund (USF). As of April 1, 2008, the FCC is charging 11.3 percent per telephone line, also known as the Federal Universal Service Charge.
  • There are also various regulatory and administrative charges that add up to around one dollar a month.

Some mobile broadband services have roaming areas that extend into parts of Mexico and Canada. Generally, if you use data or mobile broadband services within one of these extended roaming areas, you’ll be charged an extra fee based on a set price per kilobyte or megabyte of data transfer.

We hope this has been a helpful introduction to the exciting possibilities of mobile broadband. For more information about mobile broadband services, wireless technology and related topics, check out the links on the next page.

The variety of broadband media services that consumers will receive is only limited by the creativity of network, service, and content providers. While research is being conducted regularly to determine demand for specific services, one thing is clear—for broadband media services to have successful deployment, the services will have to add value to individual lives. User interface (UI) is an important component of this, and the interface and controls have to make sense for users. Ideally, users would control and access content with familiar remote-control devices and create and select content via customized on-screen menus according to their preferences. An example would be a single on-screen menu (viewable on the users TV, PC, etc) that provides access to the home DVD collection, music library, video game library, Internet and e-mail, e-greetings library, family photos, broadcast TV, pay-per-view options, and more. In the office, a single interface could provide access to employee-training videos, industry discussion forums, Internet and e-mail, and other company news and information. Since ease of use is a crucial part of the overall solution, companies are actively researching consumer preferences for integrated media interfaces to offer a variety of options that address individual tastes.The three cornerstones of Broadband Media Services are

  • truly customized “per customer,” “per media type” access to multimedia content
  • content “on demand”—what you want, when you want it
  • advanced interactivity

With that in mind, broadband media services are probably best described as a mix of

  • Internet applications (interactive surfing of the WWW)
  • e-commerce
  • pay-per-view
  • interactive targeted marketing

To better understand the potential of broadband media services, here are a few real-world examples of services that are being intensively developed and tested:

Media on Demand

On-demand experiences are a cornerstone of broadband media services in that users can consume content when it is convenient for them, as opposed to planning viewing or listening times around a preconceived, generic broadcast schedule. Generally, a media on demand (MOD) system’s primary goal is for a client to request video or music and have it play back without interruptions, with little or no delay. MOD means that the content starts playing back from the beginning or from some specified point as opposed to joining a transmission in progress. An MOD server operating on the Internet today uses IP protocols to deliver the data. These protocols define how the server encapsulates the media file into packets and how a client decodes the received data. In MOD, content is “streamed” to the viewer in real-time. The recipient may choose whether to view the content the same time it is streamed (which is possible) or save the content in the video server to view another time.

Much more than movies or VOD, MOD could be anything—music, interactive games, university courses, vacation videos, replays from last night’s hockey game, a scene from your favorite music video, a video phone call with grandma and the kids, your real-time stock portfolio with different scenarios e-mailed from your broker, a live Webcast for work. You get the idea! The premise of broadband media services is the same in that all digital content transmitted through IP networks can be “streamed” to devices and/or saved in servers, merged with other content, and ultimately viewed and interacted with. And, you will have fast, seamless access to it via a customized on-screen menu, viewable from different devices such as TV sets in different rooms of the house or PCs at the home or office. Here are two examples:

  • It’s Saturday night and you feel like staying home and watching a movie. You heard about a great foreign movie but you haven’t been able to find it near your home. You log on to your broadband media services because you know your personal video search engine will help you locate the movie online. Then you will buy it and have it “streamed” to you instantly, but only after you’ve seen a preview. After you watch the movie, you notice a personalized message from the provider indicating the release date of another movie by the same director, along with a preview of the movie and an offer for 20 percent off your next purchase. Since you enjoyed this movie so much, you go ahead and order it in advance and specify the date you’d like it to be sent to your home server. Then you click on your “late night music” selections on your entertainment menu and play a few tracks from your jazz music library before you finally doze off.
  • Your daughter’s friend from school just got a new interactive video game for her birthday and your daughter has been rightly chosen to be the first to play with her. The only problem is, your daughter is tired from a long day by the seaside and she doesn’t want to get up from the sofa. So, you fire up the laptop and drop it in her lap while her friend streams the game from her home server to yours. As your daughter desperately tries to outwit her friend at the game with the help of your speedy WLAN laptop connection, her friend has unwittingly downloaded a few “hints” from a private Internet site only available to buyers of the game. Feeling guilty after beating your daughter five games in a row, her friend decides to send a quick video demonstrating the hints for a more even match tomorrow.

Live IP Broadcasting

Of course live broadcasts exist today, but broadcasting of live events in real-time over the Internet provides a completely new range of entertainment possibilities that can be offered to end-users. There are no channel limitations and the coverage is global. Live video feed can be captured using real-time video encoders and then streamed to video servers. Broadcasting of live streams could also mean receiving satellite, cable, or terrestrial TV channels and encoding them into the IP network. Here are some examples of what IP broadcasting will mean:

  • You’ve recently moved out of the country. You like your new home and job but you miss the local news back in your hometown, and especially the extensive coverage of your old high school football team that recently made it to the playoffs. With IP broadcasting, you can watch your local news every night and you won’t miss a thing. And, you can have the local broadcast of all the playoff games “streamed” to you via IP broadcasting.
  • You have tickets to the symphony but your boss just handed you a last-minute business assignment so you won’t be able to go. No problem. You can have the symphony “streamed” to you in real time and keep it on in the background, while you’re working, hearing it just as if you were there live. Since you’ve saved it on your home server, you can replay it again and again for the full video experience later.

Regional production of global sports events, concerts, and local events in real-time will become a reality and will create new revenue streams for operators. For consumers, IP broadcasting will become as close to “being there” for the live event as one could possibly get and allow people to keep close ties with favorite local programming around the globe.

New revenue opportunities abound for service providers, as broadband media services will enable advanced targeted marketing messages. Broadband media services will create new classes of advertising such as on-demand marketing, where companies provide audio and video messages to consumers who express interest in a particular product. Automakers, for example, could offer one- or two-minute video clips demonstrating the features of specific new car models. Broadband media services will enable marketers to reach consumers near the time of the purchase consideration, with content targeted directly to the actual purchase decision-makers.

Some additional revenue-generating possibilities that operators and advertisers will enjoy are

  • e-commerce. Transaction commissions on e-commerce via retailers on the system.
  • real-estate charge. Monthly “rent” charged to each retailer on the system including links to retail sites and a number of pages on cache memory.
  • network games. End-users or groups of end-users pay for getting access to the latest games over the network.
  • sponsoring packages. Arrangements for retailers to be primary or secondary service providers in a service category (hub) with exclusive exposure possibilities on portal and hubs (fixed monthly or quarterly fees).
  • pop-up specials. Pop-up on-screen banners with save, open, or close functionality. An interactive alternative to TV program sponsorships or as interactive add-ons to traditional commercials. Sales synergies with hard-drive space sales.
  • Internet access. Sales margin on fast Internet access sold via the system.
  • hard-drive space sales. “Rent” charged to advertisers for hard-disk space necessary to display products, product catalogues, or other direct-marketing pieces via the TV. Based on alternative costs of traditional direct-marketing distribution.
  • subscription. Membership fees for access to extra or enhanced services.
  • digital TV sales. Sales of broadcast entertainment.

So while high speed and shared access to Internet services, media delivery, and local networks provide endless possibilities for consumers, it can also create new revenue streams for operators, media companies, and service providers, through, among other things, multiplied use of access networks, branded media portals, interactive advertising, and e-commerce.

Broadband media services enable operators to capture part of households’ new TV and video services and bundle them with traditional voice services, reducing customer churn and margin pressure. Everyone will benefit. Operators and service providers will provide access to services; network providers will generate revenues by maintaining and managing modular and scalable network enhancements and add-ons; content providers will create and license new content; advertisers will target customer user groups better than ever; and end-users will enjoy a new level of personalized services.

It is estimated that by 2004 there will be more than 65 million DSL subscribers, and 16 million of those will subscribe to broadband media services. The market for broadband media services is driven by:

  • content providers pushing new types of content to the Internet
  • new broadband access technologies enabling cost-efficient media services
  • broadband DSL services which will enable fixed operators to capture part of consumer’s new TV and video services and bundle them with traditional voice services, helping to reduce customer churn and margin pressure
  • increasing demand followed by growing market awareness

In addition to media revenues, broadband media services can provide new revenue sources such as advertising, interactive services, and e-commerce revenue sharing. How did the demand for next-generation IP services evolve? Why do telecom operators find broadband media services so compelling? To answer these questions, let’s first take a brief look back at the evolution of broadband media services, and how broadband media services can create new opportunities for telecom operators.


Figure 1. Expected Broadband Media Services Subscriptions (in millions)A little over 25 years ago, operators had no concept of using telephone lines as anything other than carriers of voice traffic to consumers. Before divestiture in the telecom world, and for many years after, the only service operators offered to consumers was basic voice service. The cable and home-video industries were also in their infancy. Other than network television and radio, entertainment meant that consumers went outside the home, to movie theatres, shows, or concerts. The cable industry consisted of a few small start-up companies, basically small groups of people positioning a large antenna, hooking up analogue line amplifiers to feed the signal, and routing the signal to multiple homes. The few cable operators that existed at the time were small and mainly focused on their growing cable-programming customer base. At the same time, telecom operators had a firm hold on voice service. While telcos and cable companies serviced many of the same customers with their respective services, there was otherwise little convergence in the entertainment and telecommunications industries.

Then, beginning in the early 1980′s, and especially in the last 10 years, the telecommunications industry was forever changed. The proliferation of the wireless and home-entertainment industries, including cable, home computing, and widespread use of the Internet, has created both opportunities and challenges for traditional operators. Some have experienced bankruptcy or were merged with other companies. The few that remained were faced with new competition from start-up telecom companies, Internet service providers (ISP) and content providers for a share of the growing consumer telecommunications dollar. As many of these start-ups were forced out or merged, the dominant companies that remained had tremendous opportunities to bring more value to the consumer than ever before by providing first dial-up, then high-speed, or broadband, Internet access. Today, substantial revenue increases for telcos derived solely from voice services are limited, because of market saturation. New revenue sources must be integrated into their existing product lines. Enter broadband media services.

Broadband Media Services Market Potential for Operators

The role and scope of the telecom, Internet, and entertainment industries as global powerhouses have played an important role in the emergence of broadband media services. While cable and satellite remain viable markets for home entertainment, broadband media services delivered via IP have applications above and beyond movies and music, for both homes and businesses, and offers several advantages. As Internet content becomes more sophisticated and media companies expand development of digital content in Internet-compatible protocols, the demand for broadband media services will grow exponentially. As a result of this growth, operators will have significant opportunities for generating additional revenue. The telcos’ huge base of residential voice customers is a ready market for next-generation media services.

Some of the major benefits of broadband media services include the following:

  • The infrastructure upgrades that are required for broadband media services do not involve significant civil and building-code regulation. In other words, to deploy broadband media services in an urban area, operators utilize their existing network infrastructure, so less land will need to be dug up to reinstall new infrastructure.
  • Broadband media services revitalizes the revenue potential of the telcos’ existing infrastructure by providing new opportunities to service existing customers.
  • Broadband media services offers telcos a way to compete with cable (CATV) operators’ packaged “voice + CATV services.”
  • A higher level of security is possible with IP networks. Since users are authenticated, or recognized, truly customized services and marketing opportunities based on specific user interests can be created. This is not possible with current broadcast networks.
  • New levels of customization and interactivity are possible, combining Internet with broadcast television or DVD, for example. Bundles of services are no longer pre-defined and schedules become obsolete—users decide on the media they want, and determine on their own when they want to experience it.
  • The power of the Internet is taken to a new level with broadband media services, in that individuals can create their own content and distribute it to electronic devices around the world (televisions, wireless phones, laptop computers, etc.) at the click of a button.
  • Since services are individual and not bundled, upgrades are done on a per-customer basis, unlike CATV where fundamental changes require upgrades to all served on a common/shared infrastructure.
  • Pay TV (CATV or satellite) is an established service in many countries, so there is reason to believe that telcos that offer broadband media services will find an eager customer base willing to pay, providing customers recognize the value of broadband media services over existing entertainment services.

Generating marketing messages that will convey the value of broadband media services to customers will be crucial to obtain new subscribers and for consumer word-of-mouth diffusion to kick in and grow the broadband media services market. In order for telcos to be ultimately successful in deploying broadband media services, they will need to work closely with network and content providers to ensure that services are deployed and marketed effectively to their customers. Get more cheap checks online and try out new broadband services in your town to find out who provides best service.

Broadband today: your options

3G mobile broadband is now available from all of the major operators in Australia. The major differences between the available services are coverage, performance and price. Since launching its NextG network, Telstra has led the race in terms of coverage and performance but Optus is rapidly closing the gap. VHA, the organisation resulting from the merger of Vodafone and Three, offers more aggressive pricing but is behind when it comes to coverage.

3G broadband is now more competitively priced than even entry level DSL. Coverage by the major network operators also rivals DSL:

Telstra offers 99 percent coverage with its Next G network

Optus offers 96 percent with its Yes G network. Aims to hit 98 percent by end the end of 2009

Vodafone and Three to merge Australian operations to achieve 95 percent coverage

VPN services meet your business needs

VPN (Virtual Private Network) access is becoming the most significant driver for 3G broadband uptake when it comes to SMEs. It is being used for a mix of mobile, roaming and fixed requirements and as a substitution for DSL services, in circumstances where it arguably offers advantages. The availability of network-based 3G broadband VPN services will serve to increase the attractiveness of 3G broadband to business customers due to the high speed, broad coverage and relatively low cost that it now offers.

VPN is ideal for SME businesses. The ability to build corporate networks on a common IP core has transformed the way such businesses operate. The ability to connect 3G broadband services into such networks will drive further transformation. IP VPN technology is now very mature, having evolved in parallel with DSL. The speed and cost of 3G services is evolving more rapidly than was the case for DSL. 3G broadband is able to be used as a mobile, nomadic and fixed service, making it extremely versatile.

3G mobile broadband and your business

Being inherently ‘mobile,’ 3G broadband services are ideal for use by mobile field resources such as consultants and service technicians. Similarly, it is well suited to regular travelers or ‘road warriors’ that need access from their hotel, while at a client site or simply between meetings whilst sitting in a coffee shop. Sales staff will also benefit from the mobile nature of 3G broadband. They might look up and/or update details whilst with a client or perhaps avoid unnecessarily trips back to the office between meetings, saving precious selling time. For example, taking car hire Morocco with broadband service will give your mobile gadget access to the Internet.

I met with a client recently who has consultants that typically work on location at major banks and financial institutions. They have often found it hard to make arrangements for appropriate connectivity for their staff, which may require allowing for VPN access through a firewall. VPN access via a 3G broadband connection is an ideal solution in this instance; however it would be wise to have an external antenna, particularly if working in multi-story buildings.

In sites with a single computer and/or where an appropriate router and/or firewall is used, 3G broadband services may also be used to cater for ‘nomadic’ or ‘fixed’ requirements.

Given that there is no need to ‘install’ or ‘uninstall’ a 3G broadband service, they offer significant benefits for nomadic requirements. An example might be a stand at a trade show, where it has typically been costly and painful to set up appropriate network connectivity. Other examples might be a short-term retail shop, a temporary office while a business goes through a period of change or perhaps a disaster recovery site. In each case, 3G broadband offers cost savings and much less fuss.

Think of a staff member who frequently works from home and occasionally works on client sites. A 3G broadband service provides access in both cases and might also feature in your disaster recovery plan as it enables them to work from wherever it is deemed appropriate. And if they leave the business, you can reallocate their 3G device to another member of staff without having to pay any setup or termination fees. In short, 3G broadband is very adaptable and offers significant flexibility.


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