Cellcos are missing out on new revenue opportunities by
underestimating the value of uplink-based symmetrical data
services, according to the leader of a pre-congress workshop
held Monday ahead of this week’s 3G World Congress and
Exhibition.
“The cellular industry has historically been driven by
demand for symmetrical services like voice and SMS,” said
Geoff Varrall, director of UK-based RTT Programmes and
leader of the workshop on UMTS/HSDPA network planning.
“But the focus for 3G has been on asymmetrical
downlinks, and that’s wrong, because it doesn’t map to
this shift to symmetrical traffic we’re seeing everywhere
else.”
Speaking to telecomasia.net following the workshop,
Varrall said that despite the increased ability of handsets
to create and store content, the cellular industry is
underestimating the opportunity presented by uplink-based
services.
With handsets now coming out with cameras in the 4- to
6-megapixel range and storage capabilities to match, new
possibilities abound with “real-time still imaging” that
could allow users to post camera pics on a blog or a photo
album site, Varrall said.
“What operators really need to do is figure out how to
encourage users to upload images and make money, because you
don’t make a dime out of images that remain stored on a
Memory Stick,” Varrall said.
Other service opportunities taking advantage of imaging
and symmetrical services include content management services
such as storage services, indexing and search, as well as
barcode scanning functions. Operators could also add more
value to services like mobile TV and visual radio by
allowing users to submit their own content that could be
posted on programs in the same way that SMS messages are
posted on live music video shows, for example.
The problem, said Varrall, is that the industry in
general has been too focused on 3G’s downlink capabilities
that it hasn’t spent enough time developing the uplink to
handle that kind of traffic, though he adds there has been a
“generic but slow realization” that current uplinks are
too constrained to generate much revenue. Varrall advised
workshop participants to think in terms of “memory
bandwidth” when planning their uplink bandwidth links.
Interestingly, despite the two-way video capabilities of
3G handsets, Varrall said video is unlikely to be as big a
driver of new service revenues as still imaging.
“Video is okay if it’s consistent – even if the
quality is poor, users can deal with consistent poor quality
better than they can deal with quality that alternates
between good and poor,” he said. “Unfortunately,
that’s the kind of video service they’re getting with 3G
at the moment because there are so many different network
layers to manage in order to deliver that consistency.
That’s the Achilles heel of 3G video.”