Global Digital Players : The Threat to Mobile Telcos
Global Digital Players: Threat or Opportunity for Mobile Telcos?
New and established digital players in social media and communications have launched messaging, voice, video and enhanced social media services for mobile use, resulting in a massive increase in data traffic alongside a decline in mobile network operators’ (MNOs’) revenues from their own messaging and voice services. The companies offering these services have added significantly to MNO costs, but contributed nothing directly to their income.
Some of these OTT and social media service suppliers have grown into major global digital companies. These players are investing heavily in new technologies that both facilitate the delivery of their services and increase their geographic availability, and further threaten MNO legacy revenues.
Between them, the major global digital players now have a presence in all aspects of MNOs’ business activities, including communications infrastructure, fixed and mobile telecommunications networks, voice, messaging and video communications services, music and video content, IoT products and services and consumer devices.
So far companies like Alphabet (Google) and Facebook have chosen to work together with MNOs, forming agreements and joint ventures as appropriate. However, while they generate a large part of the business that MNOs rely on, they also pose a potential threat to the mobile industry.
These topics are investigated in my latest report, Global Digital Players – Threat and Opportunity Update, published by Mobile Market Development. In it I have reviewed the activities of the five largest global digital players, Alphabet, Amazon, Apple, Facebook and Microsoft, and assessed the potential opportunities and threats they present.