IP Multimedia Subsystem (News - Alert) (IMS)-based applications have lots of potential uses, but chances are, none of them will result in a windfall in consumer spending.
That’s according to a new report from high-tech market research firm In-Stat.
In a press release about the report, In-Stat said that, instead of major increases in consumer spending, “The main revenue benefits that IMS provides lie in the integration of wireless and wireline services, and the creation of integrated multimedia service bundles for premium content and entertainment services.”
In-Stat analyst Keith Nissen cautioned in a statement to the press that, “Depending on new consumer spending for revenue growth is a risky proposition. The objective of carrier IMS revenue strategies should be to capture the maximum percentage of household monthly spending on communication and related services.”
In the process of performing research for the report, In-Stat developed the following recommendations for carriers:
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Retain PSTN revenue streams for as long as possible
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Do not lower pricing and gross margins solely in order to retain non-broadband single-service customers
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Plan for broadband market share to dictate future subscriber ARPU and revenue potential
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Expect that new consumer spending for IMS-enabled applications will be limited by rising content costs and service rate increases
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Mae Kowalke previously wrote for Cleveland Magazine in Ohio and The Burlington Free Press in Vermont. To see more of her articles, please visit Mae Kowalke’s columnist page.
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