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Cisco CEO predicts that mobile data prices will ‘come down rapidly’


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“Price points are going to come down rapidly,” said Chambers. “Transport will become free… Architectures will change. With intelligence throughout the network, the network will become the platform of the future.”

 

http://bgr.com/2013/05/30/cisco-ceo-chambers-interview-mobile-data-prices/

 

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And note that he doesn't actually say how this is going to make it cheaper and better, just that it will happen...

 

I just don't see how WiFi offloading is going to make VZW and AT&T lower their pricing.

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Perhaps pricing will stagnate, but drop? No way. But they are trumpeting price drops by saying the average consumer used 300MB of data two years ago, and now uses 3GB. Since monthly costs for these plans have not risen, or have slightly, the cost per MB consumed has plummeted!

 

So we all can be happy that prices are dropping, but none of us see any discount in our monthly bill. Once these companies stop expanding LTE and get in a maintenance mode, their LTE networks will deliver GB's and TB's at much cheaper rates than their old 3G networks. Even more savings to be realized by the wireless companies.

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

 

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Perhaps pricing will stagnate, but drop? No way. But they are trumpeting price drops by saying the average consumer used 300MB of data two years ago, and now uses 3GB. Since monthly costs for these plans have not risen, or have slightly, the cost per MB consumed has plummeted!

 

So we all can be happy that prices are dropping, but none of us see any discount in our monthly bill. Once these companies stop expanding LTE and get in a maintenance mode, their LTE networks will deliver GB's and TB's at much cheaper rates than their old 3G networks. Even more savings to be realized by the wireless companies.

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

IF Softbank successfully completes the Sprint transaction, IF Softbank/Sprint are able to integrate the Clearwire spectrum, and IF Softbank/Sprint moves in the same direction in the US as Softbank has moved in Japan, we may continue to see unlimited data, but significantly more aggressive pricing.  Softbank's growth in Japan has to some degree resulted from taking subscribers away from the Japanese incumbents.  IF this strategy can be repeated in the US, then Verizon and AT&T will begin to see erosion in their subscriber base, and will be forced to become more price-competitive.

 

That's a lot of IF's, and certainly won't have an immediate effect on mobile pricing, but may force the US mobile industry toward more a reasonable price structure in the 3-5 year time frame.

 

The effect of vastly increased WiFi access is a wild card in this game. The infrastructure cost of expanded WiFi will be enormous, and Chambers really doesn't address the question of who will pay for it, and how, but it is obvious that is won't really be "free".

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IF Softbank successfully completes the Sprint transaction, IF Softbank/Sprint are able to integrate the Clearwire spectrum, and IF Softbank/Sprint moves in the same direction in the US as Softbank has moved in Japan, we may continue to see unlimited data, but significantly more aggressive pricing. Softbank's growth in Japan has to some degree resulted from taking subscribers away from the Japanese incumbents. IF this strategy can be repeated in the US, then Verizon and AT&T will begin to see erosion in their subscriber base, and will be forced to become more price-competitive.

 

That's a lot of IF's, and certainly won't have an immediate effect on mobile pricing, but may force the US mobile industry toward more a reasonable price structure in the 3-5 year time frame.

 

The effect of vastly increased WiFi access is a wild card in this game. The infrastructure cost of expanded WiFi will be enormous, and Chambers really doesn't address the question of who will pay for it, and how, but it is obvious that is won't really be "free".

I have a few solutions for cost effective WiFi offloading. I call it the internet box. Pennies on the dollar of existing cell networks. Also this does not mean I want to broadcast on 2.4 GHz out of a tower, that is senseless. Also free is not going to pay for the network, however the price point would be very disruptive given current options for reliable personal internet.
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Price drops certainly haven't shown up on the wireline side.   They just bump speeds up and set the tiers such that it keeps in the higher speed buckets.

 

(seriously cox, I have a choice of 3 down, .75 up, or 30 down / 5 up?)

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