The fundamental role of the mobile network operator will always be an emotive issue due to the vast number who depend on them for a wide range of reasons.
There was much baiting at Informa’s recent Smartpipe event from developers apparently adamant they should be nothing more than dumb pipes and simply concentrate on providing robust connectivity.

Some smart pipes
But as an operator, why would you do that? If you’ve constructed as much as the operators have around their connectivity, their subscriber base, their third party partners, contracters and clients. The potential for profit and commercial expansion using existing business models is still immense.
For now anyway.
Long-term sustainable growth
Reneging on the non operator specific pledge for a moment, an IDATE analyst event featured a presentation from Steve Pusey, Chief Technology Officer at Vodafone. You will never find Vodafone anywhere referring to themselves as a “carrier” (the popular American synonym for mobile network operator), he told us. Because they do not and will never consider themselves mere “carriers” of services, but service providers. And most established operators would probably reflect this stance.
Established operators have spent significant effort building up assets which they are largely trusted for and can build on. Their global systems allow them to be both an infrastructure and a services provider.
The (Vo)IP threat
Are they threatened or will they be ultimately made redundant by IP (internet protocol) or VoIP (Voice over Internet Protocol) services like Skype? Only when it becomes a compelling reason for being a disruptive price model, according to Pusey. This is acknowledged and is being addressed now.
Pusey expertly deflected a question from the floor which asked about the threat of VoIP and Skype. Did the questioner still use a VoIP solution when they could use a landline to make the same call for effectively free? It still all comes back to user experience. When they are all a cinch to set up, smooth to use, have plenty of added features, assure a consistent user experience and begin to get proper penetration, maybe. Not yet though.
Let’s not forget that IP is used extensively already though. If you pick up any phone, somewhere in the darkest technical back-end, there’s already basic IP fuelling the connectivity. LTE, (long term evolution), the next infrastructure stages on from 3G and 4G connectivity, is designed around this.
It’s the Internet, stupid
Operators will not become dumb pipes anytime soon, and nor should they. They’re wide awake to their ongoing connectivity responsibilities to service providers, together with the challenges which their evolution presents, including potential disruption along the way.
Services like Skype will play a key role in driving innovation, and pressing the gap until complete transferral to IP, when strong enough technical architecture has been constructed. The virtues of an eventually global, IP-based mobile communications infrastructure are obvious.
At that point, whenever it is, operators’ sustainable growth and profitability will depend more on the strength of the value added services they offer, rather than the connectivity pipes they provide.
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After finishing the above post but before originally publishing, I came across this Fierce item…
“Net neutrality backers launched a campaign last week urging the FCC (America’s Federal Communications Commission) to make sure any national broadband strategy, which is supposed to be finalized by February 2010, includes open access provisions. Their campaign is called “It’s the Internet, Stupid,” and argues that if net neutrality rules aren’t imposed, broadband connectivity is worthless.”
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Originally posted to Composed blogsite 16/06/09