‘PTT Cellular Revenues Expected To Reach $10 B By 2008’

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Kolkata: : Push-to-talk (PTT) is the one of new applications that mobile service providers are keeping a close watch on. It will open a new revenue stream for wireless operators since it enables a two-way radio communication kind of application on mobile networks. Motorola India GTSS general manager for marketing and business development, Sunil Kulkarni, spoke with eFE about PTT among other things. Excerpts:

What are the advantages of PTT technology over traditional two-way radio communication?
PTT is clearly the most exciting development in the wireless industry these days. According to US-based Emend Research and Intelligence group, PTT cellular revenue is expected to be $84 million in 2003. It is expected to reach $10.1 billion by 2008. Push-to-talk cellular subscribers are expected to reach 340 million by 2008, worldwide.

This growing market is attributed to the distinct advantages that PTT technology offers. Push-to-talk is a relatively faster, flexible and efficient way to communicate through mobile phones — in the process it benefits both telecom operators and consumers. The biggest advantage of PTT over traditional two-way radio communication is that it enables the service on cellular technology, which has become the preferred mode of communication globally.

A user now doesn’t need a separate access device — a two-way radio — as his cellular handset enables the service. On the other hand, for cellular operators it provides voice communication using less than 50 per cent radio resources leading to significant capex saving and providing a new revenue stream.

You have said that PTT would benefit telecom operators as well as consumers. Could you explain how?
To start with, PTT enables operators to offer differentiated services. With PTT, operators have a genuinely differentiated voice service to offer customers that complements, rather than replaces, traditional voice calling. Operators can target more price sensitive end users by passing on savings created by cutting costs on network bandwidth.

More importantly, it provides them a revenue generating source at a time when average revenue per users (ARPUs) on voice alone are under extreme pressure.

Additionally, PTT emerges as a potential application for wireless data. It uses voice over packet data for both code division multiple access (CDMA 1X) as well as global system for mobile communications (GSM)-based general packet radio service (GPRS) environment and uses IP transport. This has the potential to evolve as a major application for wireless data because of efficient radio resources utilisation.