While there is no real industry standard definition of a smart pipe, several operators, bloggers, and researchers have described aspects of a smart pipe that are generally accepted.
Network operator 3 led the way with the release of its X-Series line of devices in 2006.[1] The X-Series platform bundles a set of services, several of which are unique to 3, and provides unlimited data access in exchange for a fixed monthly premium. While not necessarily a full realization of a smart pipe, 3 is one of the first operators to offer such a combination of bandwidth and value-added services for flat-rate pricing.
In addition to pricing, there is a set of services commonly viewed as parts of a smart pipe,[2][3][4] such as:
By exposing these services to the mobile ecosystem, network operators can preserve the value of their pipes while enabling entrepreneurs to create new business models and generate entirely new revenue streams.
The need for operators to innovate around a smart pipe is rising as they face rising pressure from media companies[2] and new technologies, such as Apple's iPhone, Nokia's consumer portal Ovi, and even the open-access policies of the U.S. Federal Communications Commission (FCC) introduced around its upcoming 700 MHz spectrum auction.[5]
Recently, Arun Sarin, CEO of Vodafone, was criticized for some statements he made about how Vodafone will always have a unique relationship with its subscribers through its billing relationship.[6] Although Sarin's point has been true traditionally, as the article points out there are several new threats to that exclusivity such as traditional credit card, Obopay, PayPal Mobile, and existing media companies like Google via the Android platform, Yahoo via Go, and Apple via iPhone.