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CONNECTIVITY FIRST | DEVICESCAPE

                            David Nowicki, CMO, Devicescape

Connectivity First:
An Operator Census

Mobile operators are not alone in                 and it becomes clear that mobile operators          Here’s another perspective shift: Beyond the     “Google will buy wholesale
providing wireless connectivity. And              are not alone.                                   wider communications sector is a further group      connectivity from two
as end users’ connectivity options                                                                 of wireless connectivity providers, equally         operators, connecting
become more diverse, mobile                         There are MVNOs and resellers, for a start.    disruptive in their own way. Businesses             customers to whichever
operators must seek out new ways                  Many may be niche players but by no means        providing amenity Wi-Fi for free exist in such      provides the better service
to keep themselves relevant.                      all. As discussions around UK consolidation      vast numbers that their continued growth            in the moment. It doesn’t
                                                  continued in February, Sky and Carphone          constitutes a genuine connectivity megatrend.       get more disruptive than
Mobile World Congress is where the                Warehouse Dixons—both heavyweight                                                                    that.”
           mobile operator community              consumer brands in adjacent sectors—               Now, I suspect it’s difficult enough for the
           convenes to search its soul. To        announced plans to enter the UK market with      mobile operator community to accept Wi-Fi           Smartphone connectivity very definitely
collectively address the big existential          virtual offers.                                  First players as entirely legitimate operators.   does not begin or end on the cellular network.
questions: What are we? What are we going                                                          Businesses offering amenity Wi-Fi probably
to be? In the good old days, when                   Many markets are evolving to quad-play         don’t even register.                                We believe that end users want an
competition existed only within the               service models as cable and fixed broadband                                                        integrated wireless service that delivers
community itself, imagination was the sole        providers everywhere are adding wireless           But this a dangerously restricted, cellular-    connectivity everywhere, irrespective of
constraint on discussions. In 2015, a new         connectivity to the mix. They’re muscling in     centric view. In reality, every consumer-         bearer technology. Keen to check we weren’t
reality has entered the building.                 on what was once the peacefully exclusive        facing business that provides amenity Wi-         wide of the mark we surveyed hundreds of
                                                  preserve of the mobile operator.                 Fi—from airports, sports arenas and               mobile operators for their opinion this time
  You can answer those big questions in many                                                       shopping malls, right down to the café on the     last year: 70% of them agreed with us.
ways. A mobile operator is at once a legally        And feverish anticipation is building around   corner—is a player in the operator landscape.
obligated licensee, engineering organization,     Google’s entry into the U.S. wireless market.                                                        Take a look at today’s operator landscape;
retailer, distribution channel, billing engine,   Reports suggest Google will buy wholesale           Like mobile operators, they are providing a    there’s no way 70% of mobile operators are
customer service operation, brand, wholesale      connectivity from two operators, connecting      valuable connection. Like mobile operators,       doing what they said they think is necessary.
dealer, and more. Many have wider                 customers to whichever provides the better       they are actively sought out by consumers         It does look, on the other hand, as if powerful
aspirations, their sights set on advertising      service in the moment. It simply doesn’t get     who want to be connected. And they affect         incumbent players from neighbouring sectors
revenues or the Internet of Things.               more disruptive than that.                       the operator landscape on an altogether           have spotted an opportunity to take
                                                                                                   different scale.                                  advantage of this inertia. And these new
   Ask a typical end user, though, and they’ll      Wi-Fi will form an additional element of                                                         competitors may not even be concerned, in
probably get right to the nub of it, telling you  Google’s connectivity mix, one I’d bet will be      Because the connections amenity                the first instance, by profit.
a mobile operator is a company they pay for       fundamentally important. We don’t yet know       operators provide are secondary to their core
wireless connectivity.                            exactly how this will look, but we do know       business, the experience available to users is      The mobile operator landscape is part of a
So, how does the operator landscape look          that traction gained by the ‘Wi-Fi First’        not always first rate. This is tolerated because  wider wireless connectivity provider
today? GSMA counts almost 800 mobile              service model was one of the key trends of       connectivity is free and available where the      landscape which we believe will be
operator members, which shakes out at             2014. Initially a means of start-up disruption,  user needs it. But it’s a world away, for         dominated by players that take a Connectivity
roughly one operator to every ten million         Wi-Fi First is now being embraced by larger      example, from the experience offered by           First approach to service provision. That
people on the planet. It seems like a fairly      players. U.S. pay-TV provider Cablevision        mobile operators on their networks.               landscape is changing fast. The biggest
spacious environment. Indeed, the current         provides a recent, high-profile example.                                                           question of all for mobile operators today is:
wave of operator consolidation continues to                                                           Mobile operators ensure the best available     How will they secure their position within it?
gather momentum, so it looks as if the              Emerging, alternative wireless service         connection (across three generations of
prevailing trend is towards a decrease in their   providers, large and small—unrestricted by       network technology), deliver network access
total number.                                     legacy networks, investments, and business       that is invisible and automated, has in-built
                                                  models—view wireless connectivity as bigger      security, and requires no user intervention.
  Scan the landscape for the wider category       than mobile. They view connectivity as a         This experience is one of their greatest
of wireless connectivity providers, however,      means to an end, and, in so doing, they align    assets, and it’s the benchmark for all wireless
                                                  themselves more closely with today’s             connectivity experiences. But it begins and
                                                  smartphone user than mobile operators do.        ends on the cellular network.

PAGE 20 Wednesday 4th March                                                                        MOBILE WORLD CONGRESS DAILY 2015 | www.mobileworldcongress.com
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