Industry analyst have been talking a lot about Mobile Value Added Service (VAS) and applications as key focus for telecom operators in order to increase Average Revenue per User (ARPU) and mobile data services has been forefront to this.
Telecom operators are competing with media company and are also suspicious of application providers on mobile likes of Google , Yahoo etc.
If you look at ecosystem of mobile VAS and content/application delivery , chain needs to be stictched in sequence well starting from :
1. Contents and applications creation
2. Content aggregation and distribution
3. Network Operator
4. Mobile phones and operating systems
1. Conetent and Application creation :
Here you have big players like Google , Nokia and small players in different countries. Developing killer application requires undertsanding market needs and long period of mass adoptation.
Big players have patience enough to look at launching applications , testing and waiting for long period for adoptation.
Telecom operators have focussed on providing delivery platforms with open platform and testing capabilties to small player, hoping that killer applications will be delivered. But have been lacking in collaborating with small players in providing market insights and proper revenue share model. Also Telco lifecycle for returns is max 2 years.
This has been big learning from success in Japan for local applications and contents whereas other contitents even Europe and North America failed.
2. Content Aggregation and distribution providers
These are players who purchase contents like Hello Tunes, Music songs, video clips etc from multiple content creators and tie up with Telecom operators on revenue model . They may directly reach market through Mobile Internet accessibility.
Google , Yahoo , facebook and Skype provides contents directly. Some operators are actively engaged in this sphere.
3. Network Operators
Without any doubt teelcom operators need to invest in network to provide coverage and mobile data connectivity.
4. Mobile Phones
Manufacturers have to provide open operating system (OS) for applications and provide conveniece of use to end user at appropriate price value.
What Telecom Operators should Focus on :
1. Billing : Telecom has biggest point in providing billing both post paid and prepaid. End subscriber would always want to make transcations through mobile with bills being part of mobile services. Operator should leverage this, and even big content providers would partner for this.
2. Subscriber Insight: Who better than operator have insight on subscriber behaviour. Operator should invest in tools to capture real time subscriber usage and buldling multiple products customized to user needs. This will encourage content aggregators to partner with operators to provide customized offering . Operator can himself act as content aggregation provider.
3. Location Based Services: Not all phones support GPS , operator has the beat visibility of customer location . Operator should leverage this capability to develop customized location related services for segmented markets.
4. Enterprise Segements: Enterprise will be key user of mobile applications be it Mobile Helath, mobile education , M2M applications like smart grids . Operator should develop end to end ecosystem to deliver and manage industry vertcal solutions.
5. Mobile data Network: There is no double mobile broadband will explode and operator need to invets in network to leverage benfits. Network optimization and customized plans will be key so that return on per byte transferred is maximize.
Both telecom operators , content providers and mobile manufacturers have to work jointly as part of ecosystem exploiting each strenght and weaknesses to create win win situation.
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