Chetan Sharma just released a fabulous report on what he calls Mobile Internet 3.0. We couldn’t agree more on his analysis of the need to proactively seek new revenue streams as core services move to IP, and not to succumb to being a dumb pipe for OTT services.
“Don’t sit back on OTT services – The consequences of not playing an active role in the OTT services can be severely detrimental to the operator profitability. Given that there is a significant pressure on the margins of the voice, access, and messaging businesses respectively, operators have to find new sources of sustainable revenues in the next 5 years or else accept to live with the decline of margins by 30-50%. KPN in Netherlands and SMART in Philippines have seen their profitability decline as consumers shifted their communication behavior from SMS to IP messaging. On the other hand, Turkcell in Turkey recognized the mobile marketing and advertising opportunity back in 2002 and slowly cultivated the market for such services. The mobile marketing/advertising revenue is now contributing approximately 20% to the data revenues as of 2011.”
“Mobile Internet 3.0 presents many new opportunities for the operators to expand their data revenue base beyond access and messaging. Some of these areas will require them to compete with the OTT players head-on while others will necessitate the partnerships to win the game. The critical difference from the past is that the operators will need to become nimble and act proactively to position themselves in the ever-changing value-chain and micro-ecosystems.”