Business | Telecoms
Telecom firms expected to switch to volume-based fees
A switch to a volume-based fees can help telecom firms better manage their networks, industry expert says at Abu Dhabi Media Summit
- By Scott Shuey, Business Features Editor
- Published: 12:29 March 10, 2010
- Image Credit: Gulf News
Abu Dhabi: As users around the world consume more media on smaller devices, expect to see telecommunication companies move to volume-based data charges, according to Dr. Suk-Chae Lee, chairman of KT corporation, who spoke on Wednesday at the Abu Dhabi Media Summit.
Read blog: Action at the Abu Dhabi Media Summit
KT is one of South Korea's largest telecommunication companies.
Telecommunication companies around the world are struggling to handle the amount of traffic caused by wireless devices, such as smart phones. A switch to a volume-based fees he believes, will help them better manage their networks.
"It will be seen if the telcos can handle the amount of heavy traffic that is being created," he said.
He said the iPhone in particular, which is even being used in place of PCs in Korea, was causing problems with broadband networks even in countries with well-developed digital networks.
He said a surge in wireless usage following the suicide of former president Roh Moo-hyun nearly brought the networks to a standstill in South Korea.
Dirk Meyer, AMD President's and CEO, who was also spoke at the conference, said that subsidized-models may also be on the rise.
Subsidised models involved telecommunication companies reducing the cost of digital devices to encourage subscription use. This will become more prominent, Meyer said, especially as graphically-intense technology, such as voice and facial recognition, become more prominent.
"This is something the telcos need to think about as these technologies come online," he said.
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