Two issues face the cellular industry and iNet2 has the answers:
Looming Cellular Meltdown
Mobile data is in crisis and will have a meltdown if action is not taken sometime within the next five years.
· SmartPhones grew to almost 4 of 10 new mobile devices sold in the US last year [1] (and more will sell than personal computers next year [2, 3, 4]).
· Cisco: Globally, mobile data traffic will double every year through 2013, increasing 66x between 2008 and 2013 [5]
· Morgan Stanley: Mobile Internet to Dominate Within 5 Years [6]
The solution as outlined by equipment and chip supplier Qualcomm is to shrink cell sizes and provide better backhaul, bringing many more low power [network] nodes closer to the users [7, 8, 9, 10].
iNet2 anticipated this problem and designed a wireless canopy for mobile communication integrated into a Fiber-To-The-Premises fixed network that delivers the wonders of nearly limitless capability for consumers while conveying these same services wirelessly to mobiles. It resembles AT&T’s U-verse over fiber instead of copper with this twist for which our founder has already been issued one patent (US7623858) and has another pending.
This significantly lowers the cost of service while vastly increasing wireless capability. iNet2 will be able to greatly reduce the total communications costs for the average family while undercutting the incumbents. For instance, a family of four with two SmartPhones and two messaging phones could save about $70 per month on their entire communications costs with iNet2. Add an additional $60 per month in savings if they require one mobile laptop computer.
Many more consumers will be able to find value in mobile SmartPhones as their capabilities increase and the cost of service decreases.
Is Metered Billing Necessary?
While SmartPhones increase market share, they will also evolve to include additional services that will further obstruct the cellular network.[11, 12 13, 14, 15] Incumbent cellular operators all owned by telephone companies will be disadvantaged.
As voice usage has dropped, mobile operators have lowered the price of their unlimited voice plans. To compensate they have raised the cost of using text and / or data, as usage of these forms of communication has risen. Incumbent cellular carriers are requiring additional fees driving up the costs of using them [16 17]. EACH and EVERY SmartPhone is required to have its own $30 / month data plan. This rising cost is curtailing the adoption of this helpful and rewarding technology, especially in these tough economic times.
The cellular companies are working with a scarcity of capacity. Their cost of service is large. The goal of both fixed and mobile operators appears to be implementing metered billing [18, 19]. This “frequently fails to offer real consumer value [20].” By 2014 the average mobile broadband connection is expected to generate 7GB per month [14], far exceeding current caps and costing users overage charges.
iNet2 will be able to offer simplified billing to the delight of customers.
FACTS:
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In the US, 39 percent of the 127 million new wireless devices sold in 2009 will be smartphones [1]
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SmartPhones increased world market share from 10% of all mobile phones in 2007Q1 to 18% in 2009Q2. SmartPhone market share is projected to grow to 25% in 2011 [2].
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Worldwide shipments of SmartPhones could surpass 300 million by 2011 [3]. Another prediction puts this number at closer to 400 million [4].
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Mobile Internet to Dominate Within 5 Years -- Study [6]
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SmartPhone growth is straining Mobile wireless networks. [11, 12, 13, 14, 15]
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SmartPhones are driving the adoption of Mobile TV. [12, 13, 14, 15]
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87% of SmartPhones will have 802.11n Wi-Fi by 2014 [24].
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Usage based billing is being considered by Fixed and Mobile operators alike as they maximize profits from a constrained resource. [18, 19]
- Consumers prefer fixed costs as they are able to budget their expenses. [20, 21, 22, 23]
CONCLUSIONS:
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More consumers would adopt SmartPhones IF the recurring costs of Mobile wireless data declined.
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Operators must find a way to radically lower their cost per bit while simultaneously converging all forms of communications.
SOLUTION:
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Shrink cell sizes and equipment while feeding with fiber which has almost infinite capability.
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Advantages: Higher capacity, smaller, less costly per bit and less complex, less obtrusive, easier to integrate and accommodate within communities.
HOW YOU CAN HELP:
We need an investment of $750K to $1M to perfect and design this system. Refer us to an Angel investor who is familiar with telecommunications.
NOTES:
[1] Wireless Backhaul: Revolution or Evolution?
[2] CHART: Smartphone Share Of Overall Mobile Market
[3] Worldwide Smartphone Shipments Could Surpass 300 Mill By 2011
[4] More smartphones than PCs by 2011
[5] Cisco Visual Networking Index: Forecast and Methodology, 2008-2013
[6] Mobile Internet to Dominate Within 5 Years -- Study
[7] CTIA: Qualcomm Bosses Think Small for LTE
[8] Femtos needed to boost data throughput, claim Qualcomm execs
[9] Qualcomm Urges Implementation of Denser Networks for Better Wireless Service
[10] Why mobile broadband needs femto nets
[11] How the iPhone Is Driving a Wireless Bandwidth Boom
[12] 3G demand expanding too fast for networks
[13] Smartphones Driving Adoption of Mobile TV
[14] Cisco predicts bulk of mobile data traffic will be video content by 2014
[15] Video Streaming Is No. 1 Use of Mobile Broadband
[16] AT&T Makes SMS Plans Mandatory For Many Phones
[17] Verizon Announces Wireless Pricing Changes
[18] There's Still No Evidence That Metered Billing Is Necessary
[19] Is usage-based pricing inevitable?
[20] Obama Likes Neutrality, But What About Metered Billing?
[21] Why Economists Love to Study Cellphone Pricing
[22] Survey: Flat-rate plans key to more mobile Internet usage
[23] Study: Embedded wireless market stalled on pricing concerns