Skip to main content

U.S. Cable MSOs Ponder Mobile Backhaul

Cable operators worldwide stand to earn revenues in excess of $1 billion in 2011 from mobile traffic backhaul, according to a study from ABI Research. In contrast, 2006 revenues are forecast to be only $57.6 million. The difference represents a 75 percent CAGR over the forecast period.

According to principal analyst, Michael Arden, cable operators' interest in the mobile market takes two forms: "On one hand, cable operators are considering the revenues to be gained from leasing their networks for mobile backhaul. On the other, they are getting involved as direct competitors in the mobile arena, and will brand their own mobile services."

In the United States, most MSOs seem likely to partner with Sprint -- using Sprint's base stations and other mobile infrastructure. However, as the cable operators' own mobile brands gain traction, they will backhaul their own traffic.

In this scenario, the mobile operators do not quite play the role of MVNOs, because the cable operators will use their own resources for backhaul to save costs. But, Arden says, "This slightly unusual business model works for the cable operators because they have available network capacity, and they feel the need to offer wireless services to compete effectively with the satellite and telco operators in the ‘bundled services' arena."

Further, if the cable operators establish mobile services that engage with the emerging VoIP market, they will be able to differentiate themselves by providing converged services, perhaps offering customers a single-number home and mobile package.

This trend does add competition to the market, which will not particularly please Verizon Wireless, Cingular, or most of the other U.S. mobile operators; but Sprint should be happy about this added source of income; unless the cable operators start to take away their own mobile customers.

Popular posts from this blog

Open Banking Usage to Grow by 470 Percent

The Open Banking business model has been advantageous for Third-Party Providers (TPPs), helping them to extend their offerings into other areas of financial services with new capabilities. Open Banking is also advantageous for traditional banking institutions, despite the perceived loss of custodianship over their data, by providing greater accessibility to more bank services. Furthermore, Open Banking can help serve Mobile Internet providers that are able to leverage it to create tailored services according to customers’ preferences and/or economic limitations. Open Banking Market Development Since traditional banking services are made more convenient by TPPs via greater data access, customers can proactively manage their finances and shape the development of new financial offerings. This is particularly noticeable in the realm of Digital Payments, where retail merchants and customers transact through eCommerce, which has the greatest number of use cases for Open Banking. These includ

Why Instant Issuance Payment Cards Evolved

The global financial services sector continues to grow as more progressive organizations seek to gain a meaningful competitive advantage from their digital transformation initiatives. Across the globe, many regions are seeing a significant rise in 'instant issuance' activity from a physical and digital perspective, from both traditional and emerging innovative banking institutions. Digital Payments Market Development Customers increasingly demand instant access to banking services, with physical instant issuance enabling them to leave their branch equipped with a ready-to-go payment card. According to the latest worldwide market study by ABI Research, the market for instantly issued physical payment cards will increase from 243.2 million shipments in 2022 to a forecast of 471.1 million in 2027. "Critically, instant issuance of payment cards is no longer limited to the physical," said Sam Gazeley, industry analyst at ABI Research . Indeed, the growing digitization of p

Global Digital Business and IT Consulting Outlook

Across the globe, CEOs and their leadership teams continue to seek information and guidance about planned Digital Transformation initiatives and the most effective enterprise organization change management practices. Worldwide IT and Business Services revenue will grow from $1.13 trillion in 2022 to $1.2 trillion in 2023 -- that's a 5.7 percent year-over-year growth, according to the latest market study by International Data Corporation (IDC). The mid-term to long-term outlook for the market has also increased -- the five-year CAGR is forecast at 5.2 percent, compared to the previous 4.9 percent. Digital Sevices & Consulting Market Development IDC has raised the growth projection despite a weak economic outlook, because of vendor performances across 2022, growth indicators from adjacent markets, increased government funding, and inflation impacts. The actual 2022 market growth was 6.7 percent (in constant currency), which was 87 basis points higher than forecast last year, alth