The rapid growth of Facebook, WhatsApp, WeChat and other Internet-based services has prompted some commentators to write off telcos in the consumer communications market. But many mobile operators retain surprisingly large voice and messaging businesses and still have several strategic options. Indeed, there is much telcos can learn from the leading Internet players’ evolving communications propositions and their attempts to integrate them into broad commerce and content platforms. In this report we examine what opportunities still exist for telcos in this strategically important sector.
Tag: new digital economics
The connected car market is being seen as one of the most promising segments of the Internet of Things. Everyone from telcos to internet giants Google, and specialist service providers Uber are eyeing opportunities in the sector. In this report we analyse 10 potential connected car use-cases to assess which ones could offer the biggest revenue opportunities for operators and outline the business case for investment. Our results are intriguing, and suggest that human use of data could be the largest telco opportunity in the autonomous car market.
Artificial intelligence (AI) is improving rapidly thanks to the growing use of deep neural networks to teach computers how to interpret the real world (deep learning). These networks use vast amounts of detailed data to enable machines to learn. What are the potential benefits for telcos, and what do they need to do to make this happen?
Amazon, Facebook and Google are engaged in a global contest to become the pre-eminent broker of digital commerce between merchants and consumers. Google controls the leading digital platform – the Android smartphone. And Facebook dominates mobile messaging. But new digital platforms are emerging – the growing popularity of smart speakers, which rely on cloud-based artificial intelligence, could help Amazon, the original online chameleon, to bolster its fast-evolving ecosystem at the expense of Google and Facebook. As the digital food chain evolves, opportunities will open up for telcos, but only if the smart home market remains heterogeneous and very competitive.
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 unveiling of Apple Pay and unravelling of Weve (the UK operators’ payments venture) looked like bad news for telcos’ ambitions in mobile payments in some markets, and highlighted challenges to Google and others’ models. Yet there are already successful telco models and favourable market trends that telcos should exploit. So what are the opportunities now?
Facing lockout from a growing chunk of the Internet and mounting competition from the Facebook-Microsoft alliance and Amazon, Google’s core business is under intense pressure. The search giant’s response is to innovate, offering consumers proactive recommendations, as well as reactive search results. Once an interesting sideline, Google Now has become fundamental to the Mountain View company’s future. Is the suggestion service good enough to maintain Google’s position as the world’s leading big data company?