How Many More Big New Mobile Business Models Can be Created?

How many big new business models can be developed in the mobile and untethered access industries? Up to this point, there has not been much innovation since the advent of mobile virtual network operators.

Some have experimented with “content-centric” approaches, with little success. A few have launched Wi-Fi-first services, while one operator tried (unsuccessfully) to launch a Wi-Fi-only service.

We probably will not know the answer until the internet of things business gets much bigger, or until some new entrants can eventually prove that a “content-centric” mobile service, or some form of “use while stationary” business model  has appeal. It does appear that content consumption offers a potential opportunity.

Mobile video traffic accounted for 60 percent of total mobile data traffic, according to Cisco. By 2021, 78 percent of the world’s mobile data traffic will be video by 2021.

It would be uncharacteristic for cable TV executives to envision their entry into the mobile business as “going head to head” with the leading mobile providers, with the same product, the same packaging or pricing. Cable TV executives long have argued that mobility is a highly-competitive business with commodity characteristics unattractive to new entrants.

That might help explain why several industry leaders which partnered with Sprint in past decades ultimately decided it was not the right time to get into the mobile business, and sold off their spectrum interests.

Such views also would explain why at least one leading operator--Cablevision Systems Corp.--investigated potential for a service halfway between full mobility and fixed network voice (“personal communications service”) in the 1990s, and why Cablevision Systems eventually did launch a Wi-Fi-only service recently, before new owner Altice shuttered the service.

Recently, other firms, including Dish Network, have speculated about new opportunities in the mobile content delivery business, and whether that might allow the creation of a “differentiated service” from traditional mobile service.

That seemingly remains the thinking at Charter Communications as well, which is testing 5G, with a particular eye to use of the cable plant for radio sites, plus and licensed and unlicensed spectrum,

"When you look at these high-capacity networks of the future, and they're a way out, there are new products that we think will be developed with those low-latency, high-capacity networks including virtual reality products, augmented reality products," said Tom Rutledge, Charter CEO.

In other words, Charter hopes it can discover a “content delivery” niche that would make its untethered and mobile service more unique.