“As bandwidth-heavy smartphones like Apple’s iPhone turn huge profits for handset makers, wireless carriers across the world have struggled to keep up with bandwidth needs,” Neil Hughes reports for AppleInsider. “One executive said this week that new business models must be explored for carriers to remain profitable.”
“Vittorio Colao, CEO of Vodafone, said at the Mobile World Congress in Barcelona, Spain, on Tuesday that the demand for data in mobile devices has become a problem for carriers,” Hughes reports. “According to Reuters, he specifically named Google and said the company should not be allowed to control the flow of money through dominating the search and advertising market.”
“To get their fair share, Colao said, carriers could charge customers more for greater bandwidth, or guaranteed high speeds,” Hughes reports. “They could also charge content providers, and guarantee them bandwidth speeds as well.”
Hughes reports, “Under the current business model, Colao said it is difficult for operators to invest in their networks.”
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