datacomm-research

Software automation and mobile communication can ease the pain of regulatory compliance.

Federal regulations increase the cost of doing business, and can be a disincentive for anyone thinking about starting a business.

Fortunately, there are technology solutions that can take some of the sting out of regulatory compliance and even turn it to advantage. Many regulations involve collecting information and informing consumers — tasks that can be largely automated using software and mobile devices. The data gathered can often be used to fine-tune operations and better serve customers.

During his campaign, President-elect Donald Trump promised to eliminate the most daunting rules and scale back regulations. Specifically, Trump called for a government-wide review and, more recently, suggested that two existing regulations be eliminated for each new regulation enacted.

Mobile operators need to look at reinventing their operations instead of content deals if they want to guarantee future success.

AT&T wants to acquire Time Warner and Verizon Communications wants to buy Yahoo because they believe delivering news, sports and movies to the small screen is the best way for mobile operators to ensure their long-term success. Mobile communication service has become a commodity and operators have known for a long time they need to do more than just provide “dumb pipes” if they want to continue prospering.

On the surface, everything appears to being going well for the U.S.’ four largest mobile operators. Both AT&T Mobility and Verizon Wireless have more than 100 million subscribers each, while T-Mobile US and Sprint have more than 50 million customers each. However, the mobile industry is in constant flux. Within the next five years, mobile operators are expected to begin deploying fifth generation wireless technology. And mobile operators know from experience that innovative companies can disrupt their businesses. When Apple burst into the mobile phone business with the iPhone in 2007, it broke up the handset makers’ exclusive club, and put operators in the unaccustomed position of having to negotiate for sales rights.

Threats to mobile operators’ businesses are very real. Cellular telephone was originally developed for automobiles, but today mobile phones are mainly used indoors. Competitors offering low-cost service relying primarily on Wi-Fi hot spots and only secondarily on cell towers are springing up everywhere. These include small independent companies such as Republic Wireless, Google’s Project Fi, cable TV operators and city governments offering “municipal Wi-Fi” service.

Mobile operators are still using business support systems architected in the early 1990s. They need to become digital service providers delivering digital user experiences.

The global mobile phone business is booming. Up until recently, operators had their hands full rolling out 4G services and upgrading users to the latest smartphones. Going forward, operators will face growing threats from Wi-Fi, over-the-top (OTT) services and innovative solutions not yet on their radar screens. Pressure to seize partnership opportunities will increase.

To meet these challenges, mobile operators must acquire new skills: the ability to quickly design and launch new services, to gather information and act on it in real time, and to create more compelling user experiences.

The problem for most mobile operators is that they are still using a business support system architecture developed in the early 1990s. Back then, voice generated almost all of their revenue, there were few smartphones, and opportunities to partner with content suppliers and app developers were practically nonexistent.