Dec, 2001 : Service Providers Optimistic About Mobile IP Plans
📅 - A new study of service providers in North America, Europe and Latin America conducted by Sage Research (sageresearch.com) revealsoptimism about mobile IP services while identifying significant deploymentchallenges.
"Most of the wireless service providers in this study have fairly aggressiveplans to deploy mobile IP services and applications in the near future,"says Chris Neal, project manager. "Across all regions, most of these serviceproviders are cautiously optimistic about mobile IP services. They expectsignificant revenue growth from mobile IP services, plan to increase theircurrently modest infrastructure investments, and anticipate spending more ondevelopment efforts such as application development, integration andtesting."
The research also shows that service providers see some roadblocks tosuccessful deployment of mobile IP services. "Unquestionably, these serviceproviders consider security as both the most important and most challengingcapability necessary for the success of mobile IP services, " notes Neal."The vast majority want to offer security guarantees to their customers."Market environment issues, however, are perceived as the single mostimportant challenge to mobile IP deployment, ranking higher than technologyor infrastructure issues. "Unfortunately, despite the importance of thesemarket issues - such as regulatory, interoperability, spectrum, andstandards issues - they are largely outside the control of the serviceproviders," according to Neal.
Further, the study shows that the service providers are most likely to payequipment premiums for capabilities for which they themselves can chargepremiums. The report details their willingness to pay premiums forvalue-added service capabilities including VPN support, location-basedservices and unified messaging, among others. This represents an enormousopportunity for mobile infrastructure vendors who can help service providersdeliver those services that they perceive to be critical for successfulmobile IP deployment.
The study also confirms the growing importance of GSM-based standards formigration to next generation IP networks. "Even service providers in NorthAmerica and Latin America, where TDMA and CDMA-based networks have been thenorm, plan to support GPRS (21% and 36%, respectively) and W-CDMA (28% and32%, respectively) next generation standards more frequently than weexpected," according to Neal.
For the study, professionals from a total of 364 service providers fromNorth America, Europe, and Latin America, were surveyed about their plans,expectations, requirements and perceived challenges to mobile IP servicedeployment. All participating service providers currently or plan to providemobile voice and/or data services, or content delivery services for mobiledata.
"Most of the wireless service providers in this study have fairly aggressiveplans to deploy mobile IP services and applications in the near future,"says Chris Neal, project manager. "Across all regions, most of these serviceproviders are cautiously optimistic about mobile IP services. They expectsignificant revenue growth from mobile IP services, plan to increase theircurrently modest infrastructure investments, and anticipate spending more ondevelopment efforts such as application development, integration andtesting."
The research also shows that service providers see some roadblocks tosuccessful deployment of mobile IP services. "Unquestionably, these serviceproviders consider security as both the most important and most challengingcapability necessary for the success of mobile IP services, " notes Neal."The vast majority want to offer security guarantees to their customers."Market environment issues, however, are perceived as the single mostimportant challenge to mobile IP deployment, ranking higher than technologyor infrastructure issues. "Unfortunately, despite the importance of thesemarket issues - such as regulatory, interoperability, spectrum, andstandards issues - they are largely outside the control of the serviceproviders," according to Neal.
Further, the study shows that the service providers are most likely to payequipment premiums for capabilities for which they themselves can chargepremiums. The report details their willingness to pay premiums forvalue-added service capabilities including VPN support, location-basedservices and unified messaging, among others. This represents an enormousopportunity for mobile infrastructure vendors who can help service providersdeliver those services that they perceive to be critical for successfulmobile IP deployment.
The study also confirms the growing importance of GSM-based standards formigration to next generation IP networks. "Even service providers in NorthAmerica and Latin America, where TDMA and CDMA-based networks have been thenorm, plan to support GPRS (21% and 36%, respectively) and W-CDMA (28% and32%, respectively) next generation standards more frequently than weexpected," according to Neal.
For the study, professionals from a total of 364 service providers fromNorth America, Europe, and Latin America, were surveyed about their plans,expectations, requirements and perceived challenges to mobile IP servicedeployment. All participating service providers currently or plan to providemobile voice and/or data services, or content delivery services for mobiledata.
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