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Mobile Dominates In Retail Stats, Poses Challenges for MNOs

September 11, 2015

It’s not too difficult to put two and two together; the rise in mobile devices means that actions, like shopping online, have shifted away from personal computers and are more focused on mobile spending. This means business for Mobile Network Operators (MNOs). How so?

For one, millenials are doing their part for the economy by being savvy shoppers because they’re also a mobile-centric bunch. The blazing fast mobile phenomenon has changed the way young people are socialized as consumers — and it's forcing the marketplace to play by the millennial rules of engagement more than ever.

According to Flurry Analytics, almost half of the millennial population has made a purchase on their phone. That should come as no surprise since Pew found that 41 percent of millennials consider mobile devices their main line of communication.

PFS Web says that millenials contribute to 32 percent of mobile sales; they prefer to use multiple devices and channels throughout their shopping experience, all of which can be performed from the palm of their hands.

via Shutterstock

There seems to be a growing demand and wide open market for a streamlined mobile process to capture this unique consumer demographic. In August 2014 polling for Telefónica by Penn Schoen Berland, just 37 percent of US 18- to 34-year-olds said mobile technology had significantly transformed their purchasing.

What does this mean for service providers? According to TeleTalk, MNOs are tasked with meeting the bandwidth demands of this demographic thanks to their heavy use of mobile networks, not just because of shopping, but because of using services and apps to do what they do best: communicate, share, interact, and purchase.

Because millenials are focused more on mobile and less on computers, MNOs are the it-provider, not so much the cable companies, for Internet service. Upgraded networks are a necessity to meet the expectations of the user.

To continue to provide rich content to subscribers without taxing network resources, MNOs need to invest in reliable and scalable solutions to deliver content as users needs continue to grow. As a whole, consumers have – and will continue to demonstrate – tremendous demand for mobile bandwidth. MNOs must push towards updated wireless technologies, like LTE While  the implementation of LTE can be costly and complex, MNOs can leverage the benefits of increased spectral efficiency, low latency and increased bandwidth, as well as the increased backhaul capacity, which can help meet and exceed the requirements of generations going forward.

Edited by Stefania Viscusi

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