Opening up for change

Joseph Waring
23 Apr 2010
00:00

Vertical opportunities

"There will be many areas such as e-readers, music and possibly video content that they may not have the opportunity to monetize the value of the content passing through their network.  However, there will be many areas where the telco will play an integral role.  We will see an explosive growth in communication enabling significant number of devices and that will provide a new avenue for growth," Menon said.

Addressing vertical markets is one obvious expansion area for operators, Murphy said. One issue with vertical markets is the need for domain knowledge.
"You can't satisfy a hospital or doctor's needs if you don't know what they are. So for each vertical an operator enters, they need to develop the skills and knowledge necessary to even know what is a desirable product offering for them. It just takes time and a concentrated effort. The question is which verticals the operators want to address, and then if they put the investment into those areas, they can make an entry."

They'll no doubt get a share of these markets, said Ovum's Obiodu, but the key question is how much? In emerging markets they can gain more because internet players aren't as present and billing is a key advantage where credit card penetration is low.

"Large global players may have more of an opportunity too," he said, "The reality in developed markets is further exacerbated by the ongoing spat between operators and internet players. Faced with such reality, the internet players are more likely to continue to bypass operators, with things like LBS, navigation, content and apps." 
 

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