Report Explains How Operators Can Slash Data Costs

Operators Could Slash Mobile Data Costs by 60% per annum. Thats the key finding of a study released today by Bridgewater Systems into the mobile data surge.
The report, Towards a Profitable Mobile Data Business Model, highlights the impact of growing 3G penetration, lower cost Smartphones and USB dongles, new tablets like the iPad, and the popularity of mobile applications on the growth in mobile data volumes traversing operators networks.
It investigates the causes of mobile network congestion and the best methods to alleviate it, based on exclusive research conducted by independent research firm Chetan Sharma Consulting. It also provides insights into new service models, underpinned by Bridgewaters deployment experiences with operators, and customer case studies from Ovum and Morgan Stanley.
The report looks at both network congestion management strategies and operator data pricing models. It concludes that policy control could contribute substantial annual cost savings of over 10%, equating to more than $15 billion (9.6 billion) in annual cost reductions by 2013 in the US market.
The report also says that operators deploying a data traffic offload strategy to wi-fi, femtocells or 4G could expect savings of 20 to 25% per annum by 2013, representing $30 to $40 billion in the US market. And the evolution to HSPA and LTE could save just under 20% in network costs by 2013, saving US operators $25 billion by 2013.
Bridgewater says that flexible, dynamic, and personalised pricing models that reflect subscribers preferences and context, bandwidth and application usage, and network conditions, will better align data revenues with network costs for the first time. New models include tiered and usage-based models that take a smarter approach to service personalization and fair usage; application-specific charging, to generate appropriate revenues from high-bandwidth services; time-based models that charge based on time spent on the network; and mobile advertising- and mobile commerce-funded approaches.
Our new report highlights the importance of implementing a multi-pronged strategy to reduce mobile data costs and network congestion, including policy control, data traffic offload, and migration to 3G and 4G, says Bridgewater Systems Senior Vice President, David Sharpley. By coupling this strategy with personalized service models based on subscriber usage, operators can benefit from a more profitable mobile data business model. 
You can download the report here.

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