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Can mobile operators compete against web-based service providers?
Cloud based service providers are entering the mobile market at an increasing rate, offering services that compete directly with operator offerings directly. Google Voice, Skype, Apple’s MobileMe, Facebook Mobile and Twitter are examples of services that introduce value by demoting the mobile network into a dumb pipe. Although operators have attracted subscriber attention by offering exclusive high-end smartphones - including the Apple iPhone, Palm Pre and Motorola Droid - there is limited revenue potential since aggressive subsidies are necessary to achieve mass market penetration and in several cases, handset manufacturers impose stringent requirements to partner with mobile operators.
Mobile operators have realized that they are facing a crossroad.
Mobile Network API Market Status and Outlook
Major changes in the mobile market and the role of network APIs
The mobile industry is currently undergoing an evolution and is experiencing major changes at every level of the value chain.
The continued decline of voice revenues is pushing mobile operators to turn to data services for new revenue opportunities, but traffic growth has outpaced revenues and networks are currently in a need of new revenue streams to support infrastructure upgrades. Operator “walled gardens” have failed to attract customers while the operators are under pressure from shareholders to justify the investments they made for upgrading their access networks for next-generation data services. A number of tier 1 operators have now openly admitted that they will not be able to create these services themselves and expect to employ third parties in the value chain to create best-of-breed services with sustainable business models.
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Network APIs moment of truth: Are there revenue opportunities?
Open network APIs are arguably the most publicized alternative business model to the traditional voice, SMS and data operator offering. Network APIs are enablers for a variety of business models, including operator branded application stores, two sided business models, web mashups and developer communities. However, as Tier 1 operators continue to announce API initiatives, there is confusion in the market regarding their revenue potential and whether operators should deviate from the traditional voice or bit pipe paradigm to become smart pipes and third party service enablers.
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Why IMS became a commercial disappointment
Vendors at this year’s Mobile World Congress were surprisingly quiet about IMS. After an initial marketing push that positioned IMS as the panacea for future service delivery and a means for operators to retain their coveted walled gardens, the acronym now seems to have entirely disappeared from vendors’ vocabularies.
So how did IMS fall out of favor, and are operators still deploying it? Read the rest of this entry »
It’s a CAPEX world for mobile operators
When mobile operators go to the negotiating table with infrastructure vendors, there is only one thing they want to discuss: CAPEX. Operators seek to minimize the upfront investment (and are currently very aggressive on pricing) regardless of the fact that a marginally higher cost can yield significant savings in OPEX and eventually pay for itself. Read the rest of this entry »
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