BARCELONA -- Mobile World Congress 2012 -- Facebook and Google (Nasdaq: GOOG) have been approaching mobile operators to kick-start discussions about sharing revenues in return for a determined level of service quality when smartphone users access their apps and services.
Speaking during a closed-door discussion about customer experience management here in Barcelona, StarHub CEO Neil Montefiore said one of his senior executives had been approached by the online giants about exploring such a relationship.
Montefiore, who added that no discussions had yet taken place and that he'd be interested to see if Facebook and Google would indeed be prepared to share their income, said many operators were waiting for LTE to be introduced before embarking on any such engagements involving guaranteed levels of service. But he said that StarHub can achieve this right now because it has traffic-shaping technologies it can use to enable QoS capabilities.
Facebook announced earlier this week (see this blog by developer relations chief Douglas Purdy) that it's working with operators to make it easier for mobile users to buy apps, using the operators' billing platforms to process the transaction. Bring QoS levels into the equation, and the news that Google is also looking to pin down mobile service levels takes the potential relationships a step further.
I think Google & Facebook will have trouble getting U.S. carriers to go for that idea. As much as U.S. carriers would like the revenue, I suspect they will fear the wrath of the Net Neutrality advocates, who likely will view the revenue sharing opportunity as just another form of paid prioritizastion.
eaojnr, User Rank: Light Beer 12/5/2012 | 5:41:02 PM
re: Will Google & Facebook Trade Cash for QoS?
Practically thinking, the approach can work if only the Operators BSS platform is involved in the process of charging and ensuring quality experience around consumer apps or broadband traffic. The evolution heralded by OTT applications is inself inching towards dynamic context and device interaction services which require signalling information being relayed back to apps in order to provide seamless experience.
I see a near future opporunity that will bring the operators into the OTT service space. This will create new ecology of service relationships and further solidify the tripple win - customer, operator, apps provider.
This is where Huawei's VGS solution already sets itself apart from the rest of the market in the area of Policy management. I beleive with Huawei's SDP + User Expereince Engine + BSS/OSS Managed Services, operators will be able to position themselves fully as part of the Communications Services kernel, overcoming the "dumb pipe" plague.
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