You might be interested in
The spread of 3G and 4G mobile networks in Africa and developing Asia, together with the growing adoption of low cost smartphones, is helping Facebook, YouTube, Netflix and other global online entertainment platforms gain traction in emerging markets. But some major international telcos, such as Vodafone and MTN, also have well-established and multi-faceted online entertainment offerings in Africa and developing Asia. How robust are these telcos’ entertainment services? Can they fend off the mounting challenge from global Internet players? What is working for Vodafone India and MTN and what needs a rethink?
Some of the world’s largest telcos see the fast-growing demand for online entertainment as a golden opportunity to shore up their revenues and relevance. BT, Telefónica and Verizon are among the major telcos pumping billions of dollars into building end-to-end entertainment offerings that can compete with those of the major Internet platforms. But how well prepared are telcos to respond to the forces set to disrupt this fast-changing market?
The last few years have seen attempts by many leading telecoms operators to refresh their business model and generate new sources of growth and value. Now many digital initiatives are being scaled back. Telefonica and Telenor, two companies in the vanguard of the ‘drive to digital’ have both disbanded their digital organisations. In the first of two reports, STL Partners explores why efforts to yoke platform and product innovation businesses to a traditional infrastructure business have proved so difficult. The financial and operational constraints associated with traditional telecoms – particularly the need for long investment cycles in ‘one-function’ infrastructure – have made achieving the switch to ‘agile digital innovation’ all but impossible. But all that may be about to change and the future could be a little brighter.