Telecoms survival guide: From the pipe to the media platform
Telecoms and operators must change – more out of survival necessity. Voice revenues are shrinking and “Over the top” challenges are eating into P2P revenues. Then there are technology disruptions such as Soft SIM. A study from Ovum suggests that by 2016, operators will have lost $54 billion in SMS revenues due to the growing popularity of online messaging.
79% of operators believe that OTT clients on smartphones are a threat to traditional SMS and voice based services.
In 2011, 67.6% of operators identified messaging as the most challenged service by OTT, but that figure has increased to 73.7% in 2012.
43% of operators expect 11% and over of revenues to be impacted by OTT in 2012
52.1% of the operators claim OTT has impacted on 1-20% of traffic in 2012, up from 29.7% in 2011.
The denial charecterestic of operators is slowly on the wane – as operators grapple to hold on to shifting sands. This is reminiscent of the way movie and music industry has been disrupted and laid asunder by the Torrents of the world. The key realization that needs to come through for operators is that they need to realize that they are not in the pipe business – rather they own a significant part of the media business. Realization along these lines, could be critical in opening up thought processes around creation of content and media platforms, leased services on the cloud, location centric services, context awareness, semantics awareness… operators need to pull up the game from the pipe to compelling internet based services.
A part of this new services paradigm would depend on creating platforms that host eco-systems and users co-creating and consuming real time. A lot of the operator mentality is bound around the pipe syndrome with customer ownership. However, an open system/platform is key to creating value in terms of experience, discovery and revenues/profits for the ecosystem. Operators need to graduate from the walled thinking to a shared approach.