@CTIA: DT's Obermann provides perspective in keynote address

LAS VEGAS—With the opening day keynote at this year’s CTIA event providing a jingoistic view of how the U.S. mobile space is leading the world, the second day included a quasi-outsider view of the market from Deutsche Telekom CEO Rene Obermann that for the most part echoed the first day’s sentiment, though with some caveats.
Obermann, whose leadership position at German telecom giant DT also includes ownership of domestic No. 4 carrier T-Mobile USA Inc., rolled out charts highlighting the leadership position U.S. consumers have taken in paying for mobile data services, noting data growth in 2009 surged 29% in the U.S. compared with only 11% in Europe. The numbers resulted in domestic data revenues averaging around $15 per month per customer, while European numbers were more around the $10 range. The catch: Obermann noted that European numbers are often skewed by the high number of inactive prepaid SIM cards floating around the continent.
This growth in data revenues segued into Obermann’s claim that the future of wireless will not necessarily be focused on net customer growth, but instead about getting non-traditional devices connected to the network. These will include the burgeoning M2M space that some expect could help propel wireless penetration rates into the multi-triple-digit range.
This rush to connect more devices to mobile networks appears to feed into claims that carriers are increasingly becoming nothing more than managers of a “dumb pipe,” a claim that Obermann refuted.
“Our customers have not bought into that yet,” Obermann said. “They expect us to be fast and responsive in all service related matters and to support their entire suite of services.”
Obermann also touched on T-Mobile USA’s announcement this week that it planned to expand its HSPA+ network to cover 185 million potential customers by the end of this year. Obermann noted that the network would provide network data speeds comparable to those being offered up by so-called “4G” technologies and that the carrier might not be done updating its 3G network, mentioning possibilities of more than 50 megabit per second evolutions on the carrier’s way to developing LTE once spectrum needs are filled.
Those needs allowed Obermann to comment on his support for the Federal Communications Commission’s recent National Broadband Plan that calls for an additional 500 megahertz of wireless spectrum to be freed up for mobile services this decade. Obermann backed comments made by AT&T Inc. executives the previous day that such assets would be vital for the continued evolution of mobile broadband service and that the speed at which that spectrum is made available is vital.
Finally, Obermann made a push for closer collaboration with all members of the wireless ecosystem, noting that there was a place for all, but that carriers needed to be kept in the value chain as they have had to carry the multi-billion dollar burden of constructing and operating the wireless networks that are the lifeblood of the industry.
“Every partner must bring in their strength and we are dependent on each other,” Obermann said. “Without a quality network, it would be hard to conduct e-commerce. … I am convinced that the playing field is big enough for all.”