Mobile Telcos – Phone Company or ISP?

Three LogoIf you ever needed evidence that mobile telcos (MNOs) are moving their business focus from telephones to data, then look no further than a recent post on Three’s blog. Phil Sheppard, the company’s Director of Network Strategy, revealed that 97% of the traffic flowing through Three‘s network was data. Only 3% was voice.

Also staggering was the growth in smartphone data use which grew 427% in 14 months. Yes, over 400% in slightly more than a year. It’s clear that in the last year, lots of people have upgraded to smartphones and are now actively using them online. There’s probably a combination of reasons for the explosion but the wider choice of handset models at a range of price points will be the main reason.

Three has always paid attention to data, being the first mobile company to offer 3G in the UK back in 2003, but with figures like this, it would be a fair assumption that every mobile telco is now shifting more data than voice traffic and that means these companies are more like mobile ISPs (Internet Service Providers) than phone companies. Whenever you hear an announcement by one of these companies, think about it in these terms.