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Cisco's Chambers sees mobile data prices plunging

Posted: , by Alan F.

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Cisco's Chambers sees mobile data prices plunging
Did you know that if you bought 1000 shares of Cisco back in 1990, today you'd have more money than Paul McCartney? Well, maybe not, but you certainly would be living quite comfortably. In fact, you'd have so much money that it really wouldn't matter to you that Cisco's CEO John Chambers told those assembled at D11 that mobile data prices are set to come down quickly.

The forecast by Chambers comes despite a forecast of a 300% increase in data traffic over the next five years. "Price points are going to come down rapidly," stated the executive. The Cisco CEO also predicted that universal connectivity is on the way thanks to SP Wi-Fi, or Cisco’s "Service Provider Wi-Fi". This uses unlicensed spectrum to carry network traffic coming from the carriers and will save them big bucks, allowing you to reap some of the savings. Chambers says Wi-Fi will account for 80% to 90% of the growth of cellular networks.

"Price points are going to come down rapidly. Transport will become free. Architectures will change. With intelligence throughout the network, the network will become the platform of the future."-John Chambers, CEO, Cisco

A future with lower data plan costs? Now that is something to look forward to!

source: AllThingsD

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posted on 30 May 2013, 19:36 1

1. Hemlocke (unregistered)

Wow, that is an incomprehensible level of naivete. Has voice or SMS come down significantly? Those are utilized less, and much cheaper to provide, yet I have not noticed any large rebates in my daily mail.

posted on 30 May 2013, 20:02 1

2. Whateverman (Posts: 3284; Member since: 17 May 2009)

He most be referring to carriers only. The lower ther price for them just means higher profits, doesn't necessarily translate to customer savings.

posted on 31 May 2013, 12:09

8. HoneyBadger (Posts: 12; Member since: 06 Jun 2012)

How ironic you should bring up naivete. Data is actually cheaper for carriers to transmit. It's newer technology and cheap to boot. As a business, they are jacking up the profit margins b/c they know consumers will pay for this new technology when consumers, such as yourself, believe data is more expensive.

Why do you think carriers are going towards VoLte? In a few years everything is going to be transmitted by data, whether it be voice or sms.

posted on 30 May 2013, 21:18 1

3. Shatter (Posts: 2036; Member since: 29 May 2013)

If you want them to lower the prices stop paying for the service and let the bloated carriers fall.

posted on 30 May 2013, 21:46

4. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)

There is a reason John isn't running VZW - he didn't get the memo about investing in the network to drive revenues from users of the network.

Stick to routers and whatnot, John.

posted on 30 May 2013, 23:36

6. MorePhonesThanNeeded (Posts: 645; Member since: 23 Oct 2011)

Not sure he even knows that, Cisco routers are held back by dumb firmware that force you to buy this other device if you want other features. I hate dishonest things of this nature, there are CFW made for a plethora of Cisco routers that turn them into wireless bridges and routers and gateways with encryption. Making money off the masses is what marketing is about, what they don't know you can charge them for it.

posted on 30 May 2013, 23:03

5. clevername (Posts: 1436; Member since: 11 Jul 2008)

I believe what he is saying, is that with 80-90% of data being WiFi usage, less cellular data will be used. This translates to a simple supply and demand equation. With 90% less demand, prices must fall in order to maintain customers.

posted on 31 May 2013, 11:41

7. PhoneCritic (Posts: 923; Member since: 05 Oct 2011)

John Chambers is no fool. He is positioning Cisco to be at the fore front of the impending WiFi revolution that is coming. The carriers are the fat cats now but their time is coming when VZ, AT&T, Sprint etc... will be a shell of what they are today. Steve Job envision this but could not pull it off. It was not the right time. Google has taken hold of this vision and is quietly rolling out Google fiber and lighting cities little by little- they have a online store that sells devices ( yes maybe a few Nexus S2 and certainly Nexus $ devices). Slowly every cities will begin employing WiFi all over and when that happens there will be no need for cellular communications. Cisco see this and that is why John Chambers is positioning Cisco ( Voice of IPV6, Mobile roaming) to be on the cusp of this revolution ( this is the biggest fear that the carriers have) There will come a time when we will see the main carriers going bankrupt because of this. Imagine purchasing your iOS, WP, Android device with no contract, no bloatware directly from the manufacture and paying no ridiculous monthly data fee on top of voice mins etc... just one flat monthly fee for internet services and that's it!!! TV streamed and Phone services. All carriers bypassed. This is what Google wants and what it is working towards as well as Cisco who will provide the Lion share of devices for this infrastructure.

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