Horse Hubs

How long do you think will it take mobile broadband to equal, if not replace, traditional broadband? Let us look at the current status. The competition in terms of mobile broadband UK providers is increasing. The normal pricing model is a flat rate one. The speed offered is less than that of a data cable connection. The usage is limited.

However, if analysts are to be believed, then this scenario will change soon. In the words of Steven Hartley, a senior analyst at Ovum, a Telecom and Software consultancy, the flat rate-system is greatly attracting customers. However, as traffic increases, cost effectiveness will reduce. With the advent of better technology, speeds will also increase to a great extent.

Hartley states that the day is not far when customers will start using mobile broadband for the purpose of video streaming, provided of course the networks have the required speed. Increase in data packets will have a direct bearing on the cost. In the wake of these developments, the flat-rate model shall have a negative impact on the proceeds.

Operators always aim at profit maximisation. With an increase in costs, they will shift to a pay-as-you-use model. This will pass the cost on to the customer but will have an impact on usage. However, this situation can be evaded, and the way to do it is simple. Treat the customer as the king and aim at proficiency. If the network possessions are used optimally, the rise in costs should not be exorbitant. This can be put off with the proceeds from the increased traffic.

This could be the only mantra to stick to the flat-rate model, which if teamed with customer retention, should do the trick.