Fixed Mobile Convergence

When asked how to allocate the value of a monthly mobile subscription, European smartphone users collectively told researchers at Strategy Analytics that Web browsing was worth $6.94; email, $5.20 and navigation services $4.82. Video viewing and downloading was valued at $4.49.

Instant messaging was worth $3.71; online music $3.62 and social networking $3.60. Voice services was valued at $2.91 and peer-to-peer services, $2.47.

The survey obviously indicates something about where the value of mobile now lies. The most notable observation might be that Web browsing is seen as the most-valuable application, voice almost the least-valuable application. Video ranks as the number four most valued application behind Web browsing.

One might note that mobile video’s value to consumers is out of line with the amount of network resources it consumes, delivering 12 percent of value but consuming 48 percent of network resources. By 2014, mobile video might represent as much as 66 percent of mobile bandwidth.

This dichotomy is both a problem and an opportunity for mobile operators to introduce new mobile video pricing plans. Tekelec (News - Alert) suggests one of those options is to offer consumers a discounted pricing plan if they elect not to use video. Another option is premium pricing for unlimited browsing in conjunction with video-limited access.

The third option is premium pricing for full access to video services.

The survey, sponsored by Tekelec, was conducted in Europe in December 2010, and included only Apple iPhone, Android smartphone an, or USB dongle users that used video at least a few times per month.