The world's two fastest growing technology sectors – wireless communications and the Internet – are changing rapidly and dramatically. As we have discussed in previous chapters, not only are these two highly dynamic markets changing, they are also converging. Taken together, the changes pose significant challenges for both wireless and wireline service providers. But challenge also brings opportunity. Wireless operators are facing a substantial margin squeeze for their mobile voice services. Although the number of subscribers is increasing and traffic and overall usage are up, growing competition is driving prices down. To remain competitive and minimize “churn”, wireless operators must differentiate the services that they offer, and retain high-quality, revenue-generating subscribers.

The Internet explosion is changing the way consumers behave – from social communication, to making purchases online, to the way we receive news. And now, to meet the growing demands of mobile consumers, the Internet revolution is going wireless.

The convergence of these two technologies creates lucrative new revenue opportunities for wireless operators, service providers and content portals. This new open-market environment opens the door for new services, new partnerships and a new revenue model that will help operators retain their current end-users, attract new subscribers, and improve their bottom line.

The introduction of wireless Internet services is allowing operators dramatically to expand both their service and their revenue models. The operator's traditional revenue mix (primarily flat, monthly subscription fees) is changing in the Internet-driven world.