Thursday 7 April 2005

WSP's Vs ISP's and Data Services

WSP's (Wireless Service Providers) or better known as Wireless Carriers.
ISP's or Internet Service Providers.

ISP's provide bandwidth to access internet on PC's and Wireless Carriers are providing voice over wireless networks. Things are slowly changing on both ends. VOIP is emerging as a big force in the ISP business. Companies like Vonage and Skype are changing the ISP's key role. And simultaneously data services are beginning to have a stronger impact on the mobile consumer.

Though some form of seemless convergence is beginning to appear, but for the consumer both these services are a lot different not just in terms of what they provide but also in terms how they are provided. On one hand accessing internet on PC's is becoming cheaper via ISP's and on the other hand cost for data for a consumer is increasing in the wireless world. The world of internet is more of free but on mobile devices, its the carrier who has a stronghold.

The business differs not just for the cosumer but on other businesses who make use of the network. Wireless carriers today charge anything between 30% to 70% for deploying an application on their platform. Sending multiple SMSes on a mobile device can cost you same as your cost of the monthly ISP connection.

Technologies like WIFI, WiMAX, 3G might increase bandwidth, decrease heterogenity but will the wireless network enjoy the freedom of the internet or the ISP business gets more tightened like the carrier?

I believe that future of data and bandwidth will be more open and cheaper in both these businesses. Though today the carriers control the content but in next 5 years, I think it might be someone else (not a carrier).

What needs to be provided?
Value proposition to a customer in a simpler cost effective way!

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