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Title: Changing Residential Broadband Business Models
The residential broadband marketplace is only four years old, but those
are Internet years. In Internet time, that’s long enough for service
providers to derive important market intelligence, and Paul Reitmeier has
some of that to share with telecom carriers. First and foremost, carriers
should realize that if they want to compete with cable – and cable’s
grab at voice leaves them no choice –they have to change their business
models. Direct-mail and “dialing for dollars” approaches don’t
effectively grow their subscriber base and don’t grow their average
revenue per user. To accomplish this, carriers have to go where subscribers
want to buy – to a retail model. Reitmeier’s good news is,
they don’t have to go alone.
Harnessing Retail Partnerships:
Reitmeier can speak from his own experience in three-way partnerships between CPE vendor, national retail chain, and carrier. He can tell attendees:
• How Siemens has gained the carrier a channel yielding two to three thousand new subscribers per month by setting up broadband kiosks in consumer electronics stores with SBC
• How the partners bundle SBC’s DSL services, landline and wireless voice, and Siemens’ DSL modems and home-network routers, as well as a path to future managed services.
• How the retail purchase does away with truck rolls, as consumers get sufficiently sophisticated and CPE gets as easy to install as any other Best Buy or Office Max SKU.
• How the retail model and SBC’s promotion also helps the retailer
• How it reduces the carrier’s need to subsidize the cost
CounterPath sees mobile operators – historically weak at selling to businesses – now watching the encroachment of mobile VoIP with dread. The company best known for its IP soft phones has a take-heart answer for both challenges -- one that recognizes the primacy of the mobile phone in the lives of contemporary employees. That answer involves an operator service that a) makes PBX extensions out of mobiles and b) stretches the roaming network around the world.
This is an area and an opportunity that CounterPath knows well, as its Network Convergence Gateway enables mobile carriers to provide a “Nomadic PBX” service such as we describe. Run on the NCG, the mobile, or “Nomadic” PBX reaches subscribers through the SIP device (soft phone, mobile VoIP client running on the smart phone) or the home or roaming cellular mobile network, signaling in both SIP and mobile carrier SS7.
Donovan Jones, CounterPath’s CEO, can demonstrate this hosted service running CounterPath’s SIP client. He can also show a standard mobile phone working with the service without any additional client required. The phone not only sends and receives calls through the hosted switch service – it moves calls between a paired mobile device and soft phone, sends and receives SMS messages, and shows the presence and availability status of its fellow users. This is a rich FMC play that MNOs can use to penetrate the small to mid-sized business or enterprise.