Euro telcos sour at Apple/Google dominance
February 16, 2011
Apple and Google are encroaching on the telecom industry's turf in their crusades to dominate content services, and should not be allowed to succeed in their goals, European telcos have warned.
Speaking at Mobile World Congress, Telecom Italia CEO Franco Bernabe griped that content providers such as Google are “invading our turf,” Bloomberg reported.
The mobile app industry is projected to grow to $40 billion by 2014, and operators are eager for a slice of the pie.
Telefonica CEO Cesar Alierta called for the industry to collectively negotiate a new deal with content providers whereby they would share some of these proceeds.
He said national regulators should allow operators to try to recover some of the costs of network investment.
Vodafone chief Vittorio Colao said the industry needs to rethink its approach to content delivery, to help avoid “dominance of any step of the value chain.”
Operators should drop the 'walled garden' approach and embrace the concept of open content platforms, he said.
Phil Marshall / Tolaga Research
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