Editor’s Note: Welcome to our weekly Reality Check column where C-level executives and advisory firms from across the mobile industry share unique insights and experiences.
In 1997, Frances Cairncross of The Economist published a book: “The Death of Distance.” This was a fascinating look at the changes in telecommunications. We have seen many changes in the telecoms industry since then. Arguably, the most revolutionary in the United States are the recent pricing changes by T-Mobile US to international data roaming charges.
While traveling to Japan recently, I received the following three text messages on landing at Narita Airport and connecting to the Softbank network:
–Free T-Mobile Msg: Welcome to Japan. Unlimited text incl with your global coverage. Talk $0.20/min. More info http://t-mo.co/tc.
–Free T-Mobile Msg: Wi-Fi call charges are: Free to the US, $0.20/min locally. To all other countries: long distance rates (as if originating from the US).
–Free T-Mobile Msg: Unlimited web included as part of your global coverage. To purchase high speed data please visit: http://t-mo.co/4G-Data.
Why does this matter? Firstly, the alternatives are either very expensive or not as convenient.
–Texting at no extra cost: Consumers have been using free texting with Skype and WhatsApp for some time now. That is, free as long as you are connected over Wi-Fi. However, free in those cases apply only to other users with the same service. Sending texts to users external to those services can be expensive. SMS offers such a broader audience.
–Wi-Fi calling to anyone at the same rates as at home: Similarly, for voice, Skype and Viber are voice over IP services that can be used to avoid high international roaming charges. However, they suffer the same addressing shortcomings of similar texting services. The carrier voice-over-Wi-Fi service is so much more convenient and of much greater value. The value proposition is not just about making free calls; it is also about being reachable to anyone while traveling internationally, with inbound calls being as if terminated in the United States. This is a service I have been using for more than a year, and has become indispensable when traveling internationally.
–International data access at no extra cost: In this specific instance, the service is provided by T-Mobile US on a network operated by Sprint’s parent company. Predictable billing is such a welcome improvement in the service.
Why does this matter? There is perhaps a more important reason for this to matter. The move to “4G” has been all about the transition from circuit-switched to packet-switched networks. With VoWi-Fi, T-Mobile US provides voice services anchored in its core network and delivered over a roamed-to access network. While this may be trivial for Wi-Fi, imagine the similar delivery of voice (as VoIP) on HSPA+ and LTE. Voice over LTE is certainly top of mind for many. We should not overlook interest in voice over HSPA. 4G Americas published a very interesting white paper on the subject in 2012. Voice delivered this way would represent the death of voice roaming as we know it, if it can be done commercially. Most other services can already be delivered the same way, with real-time video being the possible exception in the short term due to the unique challenges of bandwidth.
Welcome to the future of mobile services.
Madan Jagernauth started FutureMobile Service in 2013 after more than 20 years in the wireless industry, providing leadership roles for internationally recognized companies like Huawei Technologies and Nortel. With a master’s degree in Engineering and an MBA in Telecommunications Management, Jagernauth provides an understanding of technology, business acumen and a focus on providing innovative solutions to solve real-world problems. Today, Jagernauth applies this broad experience, focus and understanding of the evolving wireless industry landscape to provide wireless solutions for clients in the United States, including market analysis and forecasts, business analysis and planning, requirements analysis and wireless communication applications. futuremobileservices.com/.
