Smart pipe
Encyclopedia
Smart pipe, related to a mobile network operator
(MNO or operator), refers to an operator’s network which leverages existing or unique service abilities, and the operator’s customer relationships, to provide value beyond that of data connectivity only. The use of the term “smart” refers to the operator’s ability to add value for added, and often unique, types of services and content beyond bandwidth and network speed only.
Among the commonly understood operational models for a MNO are smart pipes, walled gardens, and dumb pipe
s.
Network operator 3
led the way with the release of its X-Series line of devices in 2006. The X-Series platform bundles a set of services, several of which are unique to 3, and provides unlimited data access in exchange for a fixed monthly premium. While not necessarily a full realization of a smart pipe, 3 is one of the first operators to offer such a combination of bandwidth and value-added services for flat-rate pricing.
In addition to pricing, there is a set of services commonly viewed as parts of a smart pipe, such as:
By exposing these types of services to the mobile ecosystem, network operators can maintain the value of their pipes while enabling entrepreneurs to create new business models and generate entirely new revenue streams.
The need for operators to innovate around a smart pipe is rising as they face rising pressure from media companies and new technologies, such as Apple’s iPhone
, Nokia
’s consumer portal Ovi
, and even the open-access policies of the U.S. Federal Communications Commission
(FCC) introduced around its upcoming 700 MHz spectrum auction.
Recently, Arun Sarin
, CEO of Vodafone
, was criticized for some statements he made about how Vodafone
will always have a unique relationship with its subscribers through its billing relationship. Although Sarin’s point has been true traditionally, as the article points out there are several new threats to that exclusivity such as traditional credit card, Obopay
, PayPal Mobile
, and existing media companies like Google
via the Android platform, Yahoo via Go
, and Apple via iPhone
.
/smart pipe dilemma, some of which are referenced in this article. Others include:
A reference which describes a smart pipe, operator portal (or walled garden), and a dumb pipe is a report from Juniper Research titled Business Models for Mobile Content Players, Strategic Options & Scenarios 2007-2012:
The author is not affiliated with Juniper in any way, and although the full report requires purchase, there are a number of summaries available on the web:
A Google
search will list several more:
Mobile network operator
A mobile network operator , also known as mobile phone operator , carrier service provider , wireless service provider, wireless carrier, or cellular company, or mobile network carrier is a telephone company that provides services for mobile phone subscribers.One essential...
(MNO or operator), refers to an operator’s network which leverages existing or unique service abilities, and the operator’s customer relationships, to provide value beyond that of data connectivity only. The use of the term “smart” refers to the operator’s ability to add value for added, and often unique, types of services and content beyond bandwidth and network speed only.
Among the commonly understood operational models for a MNO are smart pipes, walled gardens, and dumb pipe
Dumb pipe
With regards to a mobile network operator , the term dumb pipe refers to an operator’s network being used simply to transfer bytes between the customer’s device and the Internet...
s.
Examples
While there is no real industry standard definition of a smart pipe, there are several operators, bloggers, and researchers who have described aspects of a smart pipe which are generally accepted.Network operator 3
Hutchison 3G
3 is a brand name under which several UMTS-based mobile phone networks and Broadband Internet Providers are operated in Australia, Austria, Denmark, Hong Kong, Macau, Indonesia, Ireland, Italy, Sweden, and the United Kingdom...
led the way with the release of its X-Series line of devices in 2006. The X-Series platform bundles a set of services, several of which are unique to 3, and provides unlimited data access in exchange for a fixed monthly premium. While not necessarily a full realization of a smart pipe, 3 is one of the first operators to offer such a combination of bandwidth and value-added services for flat-rate pricing.
In addition to pricing, there is a set of services commonly viewed as parts of a smart pipe, such as:
- Location-based serviceLocation-based serviceA Location-Based Service is an information or entertainment service, accessible with mobile devices through the mobile network and utilizing the ability to make use of the geographical position of the mobile device....
s - Presence informationPresence informationIn computer and telecommunications networks, presence information is a status indicator that conveys ability and willingness of a potential communication partner—for example a user--to communicate...
- Customer analyticsCustomer analyticsCustomer analytics is a process by which data from customer behavior is used to help make key business decisions via market segmentation and predictive analytics. This information is used by businesses for direct marketing, site selection, and customer relationship management. Marketing provides...
- Computing platforms, mobile or application
- Mobile operating systemMobile operating systemA mobile operating system, also known as a mobile OS, mobile software platform or a handheld operating system, is the operating system that controls a mobile device or information appliance—similar in principle to an operating system such as Windows, Mac OS X, or Linux distributions that controls a...
s
- Mobile operating system
- User interfaceUser interfaceThe user interface, in the industrial design field of human–machine interaction, is the space where interaction between humans and machines occurs. The goal of interaction between a human and a machine at the user interface is effective operation and control of the machine, and feedback from the...
s - PersonalizationPersonalizationPersonalization involves using technology to accommodate the differences between individuals. Once confined mainly to the Web, it is increasingly becoming a factor in education, health care Personalization involves using technology to accommodate the differences between individuals. Once confined...
- Application programming interfaceApplication programming interfaceAn application programming interface is a source code based specification intended to be used as an interface by software components to communicate with each other...
s (APIs), for devices or networks - PaymentPaymentA payment is the transfer of wealth from one party to another. A payment is usually made in exchange for the provision of goods, services or both, or to fulfill a legal obligation....
, BillingInvoiceAn invoice or bill is a commercial document issued by a seller to the buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer. An invoice indicates the buyer must pay the seller, according to the payment terms... - Directory assistanceDirectory assistanceIn telecommunications, directory assistance or directory enquiries is a phone service used to find out a specific telephone number and/or address of a residence, business, or government entity.-Technology:...
, directory services - Quality of serviceQuality of serviceThe quality of service refers to several related aspects of telephony and computer networks that allow the transport of traffic with special requirements...
By exposing these types of services to the mobile ecosystem, network operators can maintain the value of their pipes while enabling entrepreneurs to create new business models and generate entirely new revenue streams.
The need for operators to innovate around a smart pipe is rising as they face rising pressure from media companies and new technologies, such as Apple’s iPhone
IPhone
The iPhone is a line of Internet and multimedia-enabled smartphones marketed by Apple Inc. The first iPhone was unveiled by Steve Jobs, then CEO of Apple, on January 9, 2007, and released on June 29, 2007...
, Nokia
Nokia
Nokia Corporation is a Finnish multinational communications corporation that is headquartered in Keilaniemi, Espoo, a city neighbouring Finland's capital Helsinki...
’s consumer portal Ovi
Ovi (Nokia)
Ovi by Nokia is the brand for Nokia's Internet services. The Ovi services can be used from a mobile device, computer or via the web. Nokia focuses on five key service areas: Games, Maps, Media, Messaging and Music. Nokia's aim with Ovi is to include third party developers, such as operators and...
, and even the open-access policies of the U.S. Federal Communications Commission
Federal Communications Commission
The Federal Communications Commission is an independent agency of the United States government, created, Congressional statute , and with the majority of its commissioners appointed by the current President. The FCC works towards six goals in the areas of broadband, competition, the spectrum, the...
(FCC) introduced around its upcoming 700 MHz spectrum auction.
Recently, Arun Sarin
Arun Sarin
Arun Sarin was the CEO of Britain's Vodafone Group plc. On June 29, 2008, he announced his resignation as CEO of Vodafone Group. He is a senior adviser at the private equity firm KKR. He serves on the board of directors of Cisco Systems and Safeway, Inc...
, CEO of Vodafone
Vodafone
Vodafone Group Plc is a global telecommunications company headquartered in London, United Kingdom. It is the world's largest mobile telecommunications company measured by revenues and the world's second-largest measured by subscribers , with around 341 million proportionate subscribers as of...
, was criticized for some statements he made about how Vodafone
Vodafone
Vodafone Group Plc is a global telecommunications company headquartered in London, United Kingdom. It is the world's largest mobile telecommunications company measured by revenues and the world's second-largest measured by subscribers , with around 341 million proportionate subscribers as of...
will always have a unique relationship with its subscribers through its billing relationship. Although Sarin’s point has been true traditionally, as the article points out there are several new threats to that exclusivity such as traditional credit card, Obopay
Obopay
Obopay is a company specialized in mobile payment systems and headquartered in Redwood City, California. It was founded in 2005 by Carol Realini, current CEO....
, PayPal Mobile
PayPal
PayPal is an American-based global e-commerce business allowing payments and money transfers to be made through the Internet. Online money transfers serve as electronic alternatives to paying with traditional paper methods, such as checks and money orders....
, and existing media companies like Google
Google
Google Inc. is an American multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program...
via the Android platform, Yahoo via Go
Yahoo! Go
Yahoo! Go was a Java-based phone application provided by Yahoo! for users to access the company's products and services via their mobile phones or PDAs...
, and Apple via iPhone
IPhone
The iPhone is a line of Internet and multimedia-enabled smartphones marketed by Apple Inc. The first iPhone was unveiled by Steve Jobs, then CEO of Apple, on January 9, 2007, and released on June 29, 2007...
.
Further reading
While there is no real industry standard definition of smart pipe, it is a generally understood term in the mobile industry. There are numerous blog postings and trade articles which refer to the operator dumb pipeDumb pipe
With regards to a mobile network operator , the term dumb pipe refers to an operator’s network being used simply to transfer bytes between the customer’s device and the Internet...
/smart pipe dilemma, some of which are referenced in this article. Others include:
A reference which describes a smart pipe, operator portal (or walled garden), and a dumb pipe is a report from Juniper Research titled Business Models for Mobile Content Players, Strategic Options & Scenarios 2007-2012:
The author is not affiliated with Juniper in any way, and although the full report requires purchase, there are a number of summaries available on the web:
- Smart-Pipe Strategy to Provide MNOs with 31% Share of $188bn Mobile Content Market by 2012
- Study About MNOs Share of Mobile Content Market
- Mobile Entertainment in Western Europe
A Google
Google
Google Inc. is an American multinational public corporation invested in Internet search, cloud computing, and advertising technologies. Google hosts and develops a number of Internet-based services and products, and generates profit primarily from advertising through its AdWords program...
search will list several more:
See also
- Mobile phoneMobile phoneA mobile phone is a device which can make and receive telephone calls over a radio link whilst moving around a wide geographic area. It does so by connecting to a cellular network provided by a mobile network operator...
- Mobile network operatorMobile network operatorA mobile network operator , also known as mobile phone operator , carrier service provider , wireless service provider, wireless carrier, or cellular company, or mobile network carrier is a telephone company that provides services for mobile phone subscribers.One essential...
- Walled garden (technology)
- Dumb pipeDumb pipeWith regards to a mobile network operator , the term dumb pipe refers to an operator’s network being used simply to transfer bytes between the customer’s device and the Internet...