According to overseas media reports on August 23rd, mobile operators predict that within the next three years, the downloading of unlocked phone apps will become the largest source of revenue for mobile operators in mature markets. They also hope to charge content providers for network access fees, a move that has raised concerns about the principle of net neutrality.
A recent survey conducted by The Economist Intelligence Unit shows that mobile operator executives believe that by 2013, downloading unlocked phone apps will replace voice services, which currently account for 70% of mobile operator revenue, as their largest revenue source.
Many mobile operators have stated that consumer spending habits will change, with people becoming more inclined to use social networking sites, download videos, and play unlocked mobile phone games. Although content providers take the vast majority of the profits, these new consumption habits require mobile operators to further increase their investment in content nodes to handle data consumption.
Natasha Good, one of the commissioned researchers and partner at law firm Freshfields Bruckhaus Deringer, said: "Mobile operators are returning to the ideal of 'content is king.' However, they need to ask themselves a question: Do I want to be a content delivery channel or provide content myself?"
Fifty-five percent of the surveyed mobile operators indicated that mobile operators should charge fees for prioritizing network traffic, but 38% of mobile operators accept the current business model, which does not allow charging for prioritizing network traffic.
Prioritizing certain types of network data would conflict with the principle of "net neutrality." This principle holds that when transmitting information to end users, all data should be treated equally without discrimination. Currently, regulation based on the principle of net neutrality has been strengthened.
The joint announcement by Google and Verizon regarding internet traffic management recommendations overshadowed discussions about net neutrality, including whether certain types of content should incur higher fees.
Some European operators, such as France Telecom and Telefonica of Spain, have expressed that they need websites with large data capacities like YouTube to meet their demand for additional data.
France Telecom CEO Stéphane Richard said: "It's somewhat abnormal and illogical from a business perspective for Google to use our networks without paying."
However, European regulatory bodies have shown indifference towards discriminatory practices that favor some websites at the expense of others.
In the survey, mobile operator executives suggested that a new fee structure might help address the issue of data management.