3G operators to adopt TSP model

October 14, 2004

By 2008, all European 3G operators will earn the lion's share of their revenues as Telecommunications Service Providers (TSPs). The prediction from Mobeon, the mobile messaging software company, will see TSPs leasing network bandwidth to alternative service providers, such as music, games, publishing and utilities companies.

Mobeon Labs, the research and development arm of the Swedish company, reports exponential growth in enquiries from alternative, third party providers interested in making their digital services 3G-compliant.

"Remote access to high-definition, high-speed data is the jewel in the crown of 3G," said Robert Vangstad, vice-president of marketing at Mobeon. "Until now, many operators have been persecuted by shareholders for investing in 3G, but the market is rapidly maturing and there are plenty of companies with deep pockets who are lining up to capitalise on the unique marketing opportunities that 3G presents."

Mobeon anticipates that in the next three years, the majority of mobile operators will adopt the new TSP business model, which is a modification of the strategy developed by Internet Service Providers (ISPs).

"3G operators will continue to innovate, coming up with new communication services to entice and enthral users - and this will continue to underpin revenue streams," explained Vangstad. "However, the ability to use 3G networks to exchange and transmit information at maximum speed to customers on the move cannot be ignored by other big players within the multimedia business environment."