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.
Choosing the right mobile provider is an important decision for any modern business with employees on the go. Technology is becoming increasingly mobile, and for many SMEs, the difference between a good day and a bad day can come down to just one call and their ability to respond.
A missed call or email, but particularly a delayed response to clients, could spell disaster for SMEs. It’s therefore important that businesses are fully mobile and accessible at all times. There are a variety of different mobile providers to choose from in Australia that cater for an ever-growing range of mobile services. Here are some important steps to take prior to choosing a mobile provider and some crucial questions to ask before you sign on the dotted line.
Assessment
First and foremost, you must assess and understand the mobile technology requirements for your business before examining your options. When considering the following points, keep in mind your company’s growth plans, as your mobile service will need to develop and grow as you do.
Level of access required:
- How many employees will share the company’s mobile plan?
- Do you have any employees that are regularly out of the office? For example, sales teams spending significant time on the road or employees working from home?
- On average, how much time do your employees spend on their desk phone vs. mobile phone? Do you need your mobile phone to act as both?
- Is email and internet usage an integral part of the way your business operates?
- Do you need to place restrictions on employee mobile usage, for example, the level of data they can download?
- How often do your employees travel both interstate and overseas?
Account management:
- Do you have an existing mobile contract that may affect negotiations with a new mobile provider? This will need to be flagged with your new mobile provider so that they can tailer a deal that’s right for you.
- Is your business currently supplied mobile services in addition to mobile solutions, such as mobile broadband? If so, how many suppliers across the business are involved? Can you benefit from streamlining your suppliers?
- Are your mobile services interoperable or stand-alone?
- Does your business have access to technology conducive to the level of mobile access you require, or do employees need a handset upgrade to enable them to be as efficient and productive as they can be?
Price
As in all business decisions, one of the crucial differentiators with choosing your mobile provider is price. Once you’ve assessed your mobile needs, it’s important you engage a mobile provider that can offer you the services you require at the best possible price; but look deeper than just the quoted call rate. Ensure you’re getting genuine value.
The flexibility of your mobile plan is key to maximising the cost-effectiveness of your corporate mobile solution. Most of the major mobile service providers in Australia provide a certain level of flexibility and scalability to their corporate customers, but it’s important you understand the structure of the plans being offered to ensure it’s the right one for you. Generally, the most cost-effective plan is one that lets a group of employees share from the same pool of talk-time, rather than bill each single employee separately on general call rates. A shared pool option allows for greater certainty in your mobile spend each month, minimising the chance of bill shock. It’s unusual for mobile service providers to charge their corporate customers in this way, so do your research to ensure you don’t exceed your budget allocation.
It’s also worth noting the flagfall rate of the corporate mobile plan you choose. Flagfall is a fixed fee that mobile service providers charge to connect each call, with the total cost deducted from the monthly value of a customer’s plan. Some mobile providers, such as Vodafone Australia, have removed flagfall from their corporate plans, allowing greater cost savings and account transparency for customers.
Coverage
Mobile network coverage—both locally and internationally will directly affect your ability to use mobile services. When thinking about your business’ requirements, also think about the locality in which your employees operate, evaluating how far they travel and the mobile activity required to conduct business effectively in those areas. Do your employees spend 99 percent of their time in metropolitan areas? In which case, paying a costly premium to a mobile provider that guarantees you coverage in Uluru may not be the best way to spend your business dollar. Australia’s leading mobile service providers, including Vodafone, Telstra and Optus, have reasonable levels of network coverage with further enhancements expected to take place mid-2009.
International travel is becoming a more frequent component of how SMEs operate, whether for client meetings, product selection or undertaking sales. It’s crucial that your mobile provider offers you the best global network coverage with the best international rates, so that you can operate with minimal fuss and disruption wherever you are. While most leading mobile service providers can connect you globally, Vodafone is the only mobile provider in Australia to have its own global network. For this reason, it is able to offer extensive roaming throughout the world, with call rates at the optimum level of value. As with domestic calls, it’s key your mobile service provider offers a clear pricing structure for their international call rates. You shouldn’t have to pay more to your bill to receive great value international rates. Look for service providers that allow you to add on tariff options to your bill for free.
The internet is more important than ever for small to medium businesses looking to maintain an edge over their rivals. Look for a mobile service provider that offers the most cost-effective mobile data plans abroad. For businessmen and women who need to travel regularly, their mobile broadband needs to be able to travel too, so look for a service provider that offers the best international coverage and roaming rates.
Technology
Your corporate mobile package isn’t just about network coverage and applications, but the ability to operate your business using the best technology available. When choosing your mobile provider look at the types of handsets available with each of the corporate plans. Look too at the add-on technology available for your mobile solution. It’s important your provider notifies you when upgrades and updates are available so that your technology is working as effectively as it can. Applications are also an integral part of maximising your technology, so check whether your mobile provider allows business-friendly applications such as GPS.
Customer service
A loss in communications for a business can mean a loss in sales so, if things go wrong (and they will from time to time) it’s important you have a dedicated team you can turn to for help. When it comes down to choosing a service provider, many SME owners will see quality customer service as a make or break component. A knowledgeable, reassuring voice at the end of the phone line can make a world of difference when in times of crisis.
Choosing a service provider based on its customer service qualities can be difficult, however there are a few stand-out features that SMEs can look for when making their appraisal. Firstly, evaluate whether your mobile service provider offers a one-stop-sho customer service centre, offering advice on all your telecommunications components. Secondly, check if your mobile service provider offers free customer service. Some service providers can charge a fee for customer service calls, so check the fine print. Also, check what hours they operate in. You don’t want to be stuck overseas with no mobile, no internet and no customer service. Look for a service provider that offers free 24/7 customer care; essential for business users who find themselves working late into the night, over weekends or while overseas.
For larger businesses, mobile service providers are able to offer dedicated account management teams. And, if you are based in Australia, you will want a dedicated client executive team based in Australia which understands your business, the local market and account, and can talk to you in your own timezone.
Solution
When looking at the mobile solution for your business, smart SMEs should also look at other ways to improve business efficiencies and consider consolidating mobile service suppliers into one. In fact, services such as mobile broadband, mobile internet, mobile calls, fixed-line calls and WiFi are all essential to keep your business viable in 2009 and give you an edge over the competition. Understandably, several types of communication solutions can cause a bit of a head ache for CFOs, with several separate bills potentially hitting their in-trays each month.
To help streamline your communications solution, try to look for a mobile service provider that offers an all-in-one solution, as one bill for all your communications services equals much less of a headache for SME business owners and CFOs. This approach allows for easier financial reporting and maximised cost savings. Furthermore, look for trusted brands that offer their services as part of an all-encompassing package. This needn’t mean a compromise on the viability of the package for your business, so make sure that the service you purchase is scalable to ensure a tailored solution that fits your business like a glove.
This tutorial describes the evolution and technologies involved in broadband media services delivery. A brief history tracing the evolution of broadband media services will be presented, along with descriptions of multimedia standards, potential services, and the roles of the various entities involved in creating broadband media services–network providers, content providers, services providers, and businesses and consumers. After working through the tutorial, participants will have a general understanding of the scope, technology, and benefits of broadband media services.Broadband and bandwidth
“Broadband” refers to a type of network connection that supports a very high bit rate, as opposed to “narrowband,” which supports a lower bit rate. The higher the bit rate, which is a measure of speed of transmission of bits per second (bps), the faster the transmission will occur in a given period of time. “Bandwidth” is a measure of capacity. Greater bandwidth allows more information to be communicated in a given period of time. Broadband media services delivery requires transmitting large amounts of information quickly, so the combination of fast broadband transmissions and large amounts of bandwidth required to deliver information are the foundation of broadband media services delivery. But this is just the beginning of the broadband media services story, because the true value of broadband media services lies in the actual services that can be delivered across these high-speed, high-bandwidth networks, the entirely new “on demand” way customers will access them and the customized and personalized ways that individuals will interact with these services. With that in mind, we can formulate a definition of broadband media services:
Broadband media services is the seamless, customized, “on demand” creation and delivery of multimedia services to homes, businesses, and mobile users, including entertainment services (movies, interactive games, broadcast TV), infotainment (e-learning, online training) through high-speed Internet protocol (IP) networks.
Beyond fast Internet access
“Broadband media” is sometimes called “streaming media” because the services, or “content,” that is delivered via broadband networks is digitized, and received by users of the content in continuous real-time “streams.” Broadband content is digitized and accessed utilizing IP, the standard protocol used for Internet access today. In fact, high-speed IP access through digital subscriber lines (DSL) that utilize existing voice lines for high-speed transmissions, is the foundation of the broadband media services network, and DSL is available in many parts of the world today. DSL is a group of increasingly high-speed technologies that enables fast Internet access in homes and businesses. DSL “always on” connections will also form the basis of the sophisticated broadband media services networks of tomorrow.
Fast Internet access barely scratches the surface of the powers of broadband, DSL, and IP technology, which, combined in broadband media services, will connect people and businesses around the world like never before. Broadband media services will put the consumer in total control by enabling personal, custom, on-demand viewing of entertainment, e-learning, video games, and other types of content. Individuals will choose what they want to hear, see, or be entertained by on their own, and people will no longer have to plan around preconceived broadcast schedules for home entertainment. Eventually, we will decide our own schedules for much of our entertainment. Furthermore, broadband media services will allow individuals to easily create their own content, personalize it, and distribute it for viewing on TVs, PCs, remote laptops, and mobile phones and other wireless devices around the world, instantly.
Broadband media services provides endless possibilities for consumers to choose and personalize their entertainment and infotainment. Broadband media services will also create new revenue streams for operators, media companies, and service providers through enhanced usage of existing networks, branded media portals, interactive “one-to-one” advertising and endless e-commerce possibilities. The proliferation of high-speed broadband IP access and broadband media services will require content creators to distribute large amounts of rich media to a global audience of high-speed users with increasingly greater demand for access to specific services. The challenges for broadband media development include understanding true consumer wants and needs for services and perfecting the technology standards behind the high data rates and significant bandwidth required for seamless delivery of high-quality multimedia services.