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Technology Stocks : XO Holdings, Inc. (XOHO - XO Communications)

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From: tech101	4/22/2008 2:27:40 PM
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Data Prices Fall, Usage Booms APRIL 22, 2008 Mobile data traffic ramped up between four- and eightfold in 2007 thanks to the knockout combination of dramatically decreasing prices and faster network downlink speeds, according to a new report from Heavy Reading. The surge in data traffic is extremely good news for operators, but the challenge they now face is how to withstand the reductions in data prices without destroying their business models and becoming mere bit-pipe providers. In 2007, an eightfold increase in data traffic compared with 2006 levels was common for mobile operators …… …… the increase in mobile data usage is primarily due to lower tariffs -- prices declined more than 300 percent in 2007 …… Now operators have to decide how low they can take their prices, and how they deal with the impact of the data surge on their business plans and strategies. "Mobile operators are essentially becoming ISPs," says Brown. "They are going down the bit-pipe road. They don't want to do that, particularly, but what should they do?" unstrung.com

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