Vittorio Colao, chief executive of the world’s largest cellphone networks operator, told in Barcelona that instead new business models needed to be created to cope with the demand for data services.
The comments added at the annual gathering of handset makers, chipmakers and service providers, the rapid growth of smartphones such as Apple’s iPhone, operators are being left to worry about how they are going to profit when they must also fund the related improvements needed in network capabilities.
However, BlackBerry-maker Research in Motion Ltd said that smartphone manufacturers must start developing less bandwidth-guzzling products or risk choking already congested airwaves.
“Manufacturers had better start building more efficient applications and more efficient services. There is no real way to get around this,” Lazaridis said. “If we don’t start conserving that bandwidth, in the next few years we are going to run into a capacity crunch. You are already experiencing the capacity crunch in the United States.”
In order to succeed the industry needs to allow operators, content owners, application developers, search and operating system owners to develop new business models, to enable the operators to continue to invest in new and faster networks.
Colao picked out two areas of concern. ithin the search and advertising market, he said one player, Google, dominated the industry and held around 70 to 80 percent of the market, which he said was something that should be “looked at.”
He said there was a also not enough competition in certain fixed line markets in Europe, which could affect the supply of higher data speeds.
Colao said the industry needed to look to alternative business models and urged regulators to give them the opportunity to experiment.
“Let us work together to deliver truly competitive, truly open and truly sustainable technology,” he said.
Vodafone’s call for a different approach stands in contrast to the makers of operating systems and those involved in the production of the handsets.