Whole Internet vs Mobile Internet vs Net Neutrality

IanFogg | June 26, 2007, 03:50 PM

Mobile operators want the marketing boost that the word “Internet” provides. They hope it’s the long sought panacea to ignite non-SMS mobile data revenues. So, many European operators are now beginning to push open access Internet packages. They are, in effect, becoming mobile ISPs.

Unlike home ISPs, mobile operators are accustomed to enjoying a strong position in the value chain. In essence, they are a gatekeeper, and use handset subsidies and other lock-in mechanisms to maintain that role.

While home ISPs are seeking to strengthen their position, and this creates potential net neutrality and neo-walled garden models...

Mobile Internet threatens to be even more earth-shattering for mobile operators. For the first time, such packages enable Internet-based competition against mobile operator products: VoIP telephony, over-the-top video, instant messaging that competes with SMS text messaging, etc.

Early indications are that the mobile Internet will not mean the whole Internet, unless consumers and regulators fight for it:

- Both Vodafone and Orange are taking a version of Nokia's N95 smartphone without the VoIP telephony application.

- 3 charge more for a data plan if consumers wish to view streaming video, and even then limit the usage.

- T-Mobile charge three different price points for Web n Walk, based on what Internet applications are allowed:
Basic: just Web and Email allowed; Mid: Instant Messaging, video, connection to PC etc. Essentially everything bar VoIP; High: Includes VoIP.

As most mobile operators are also ISPs, they are struggling to align their home and mobile Internet marketing messages. But they have to do it if they are to create clear a communication of what level of Internet access they are providing in the home and on a mobile. In the UK: Orange, Vodafone, BT, Carphone Warehouse, Virgin Media, and O2 all have both fixed and mobile operations. Of the leading mobile operators, only T-Mobile and 3 have no fixed ISP arm.