Mobile Operators are at the crossroads of an exciting Journey.
They need to choose to become the best of breed connectivity player delivering Internet access, Talk and text services, OR become a
next generation services provider delivering multi-media and end user applications. Now I am not here to pass judgement or to say
which is better (ok I do have a view), however they must choose a path as trying
to dance between the two will only cause increasing prioritization challenges
and conflicts of investment strategies. My intent with this article is to open
the eyes of operators so that they may see an opportunity before them.
In order to move forward Mobile Operators need to get back to what
they were known for, when Mobile Networks were the next best thing driving
innovation and service creation. Remember
when we couldn't send more than 30 characters in a message, or the first time
you viewed the Internet through your mobile? I mean, come on, how cool was
that! The status of Mobile Networks going “All IP” has finally arrived and
hence a new horizon has been reached! So,
what are we going to do differently?
Despite a growing view that Over the Top (OTT) players “own the
customer relationship”, I suggest you ask yourself this simple question: “Who do you call when you can’t access
certain content or make a Skype call or even view your Google maps?”…. The
majority of us first call our mobile operator, with a common statement of “Hey,
I can’t access my Apps, Content, or speak to my family whilst trying to avoid
your expensive long distance charges!” In my view, if the operator is being
asked to be accountable, then shouldn’t they leverage the role as a
differentiator as well? Operators have a great chance to remove demarcations
and show their customers a true value service, where predictability in end user
costs are provided – therefore reducing bill shock when accessing high bandwidth
services; and where customers can choose what type of content they want.
I believe, there are some very exciting services that Mobile
Operators should consider, if they haven’t already, offering to their
customers:
·
Media: This is the most obvious avenue, given Mobile
networks are moving to an all IP network, they can now prioritize and
effectively optimize traffic to balance quality of experience whilst minimizing
loads on the network to minimize impact on other customers. There are equally
exciting opportunities to work with local content providers and/or
broadcasters. Operators provide significant value in that they can provide very
detailed information on the profile of the individual watching the content (no
this is not about selling information, but about profiling a customer base to
drive demand and more importantly relevance of advertisements and content to
the end user. This is something broadcasters fail to do today when we are
watching on our TV’s at home, Yes Broadcaster and Content providers can predict,
based on time of day but that is really it, to have the opportunity to know ,
who is watching what type of content and when would increase the granularity
and market insights. This means broadcaster could tell their advertisers that they
could increase the profiling of viewers for specific shows and ultimately
realize a better ROI for their programming.
·
Applications:
Yes we all know the demand and “stores” of applications are expanding rapidly, however,
they remain tied to specific Operating System stores and as such, remain
difficult to share amongst friends with different operating systems. Mobile
Operators are quite unique in that they don’t care if a customer prefers an
Iphone over an Android, or Nokia above Blackberry (hey it could happen).
Therefore, consider an application store, which is run by the Operator, where
customers are able to recommend applications to friends, create apps and share
them across a broader market without worrying what Operating System their
application is based on or what type of device their friends choose to use. And because of this, they then see the
relevance and value of a Operator enabled store that much faster! Equally,
local hosting of the applications improves customer experience for the
application owner – especially for the growing number of high bandwidth
demanding services, as well as localization of Internet traffic. For
Application developers, in local markets, it is always a choice of what app
store do you start hosting your application on. Yet, mobile operators have an
opportunity to help the application developer access multiple Operating Systems
and, at the same time, promote their particular application to a broader
audience. The value for the operator, as mentioned earlier, comes in
optimization of those access applications across their “all IP” mobile network
and I would suggest sharing the advertising monetization with the app developer.
·
Service
Bundling: Historically we have looked at bundles based on a
mobile device, phone line and access to the Internet. But, these days, all of
these elements are a given. Why not change this to become: access your top
three social media pages, favourite content sources and/or applications? By
collecting all of this data, Mobile Operators can then share with the customer
what other content or apps may be of interest based on similar profiles without
divulging personal data! Equally in understanding these preferences for
customers operators can start to prioritize or optimize traffic to ensure
customers receive an exciting experience whilst also working with the content
or service owner to consider hosting high demand services with the operator to
reduce overseas Internet expense and improve performance.
·
Advertising:
This has become a fact of life, whether you like it or not, it is here to stay.
We see ads everywhere on line and where the Mobile Operator can add value, is
to use this to help the customer gain access to content and services at a lower
cost. Before you skip past this idea, consider for a moment an option to buy
into Ad categories which are of relevance to you and use these as credits to
offset your new profile based service bundles or expand your bundle to other
services at little or no extra cost. We have tended to forget that the
Advertisers will consider all avenues to reach their potential customers as
long as they are more likely to view the advertising. Let’s face it, if you
know the ads being shown are of relevance and then you are more likely to click
on the ad. Combine this with basic profile data of Day, Time, location and
personal preferences to create the greatest likelihood of interest for both the
end customer and the advertiser. in the end it is the operator who is actually
facilitating the relationship and making it beneficial to both!
Mobile Operators are at a cross roads, they have the
capability to redefine the customer experience through optimization,
prioritization and packaging. The “all IP” network means it is much easier to
introduce over the top services which could be viewed on laptops, mobiles or
tablets (and increasingly TV’s!) The traditional Over the top providers (OTT’s)
may become agitated with this approach, however, in my opinion; it is
ultimately what we have been missing for some time. A healthy competition and a realization that
mobile operators have more than one choice, when it comes to delivering a
content and service rich diversity and high quality customer experience. It is
up to the OTT players to excite the operators in how they are going to partner
in service creation, customer growth and end to end service assurance. OTT’s
have a choice to make as Operators are now in a position to shop around.
Mobile Operators therefore need to identify the role they want
to play, build the above capability or identify the partners (not suppliers)
who they can work with to achieve the same. However, whatever the decision, the
end result MUST be that they take responsibility for the end to end customer
experience and that is only possible if they embrace the Over the Top model,
recognize that the era of talk and text is moving to all IP and OTT players are
increasingly challenging mobile operators for this space. Going all IP means
Operators can now leverage the growing standardization that Operating systems
for mobile devices have brought us and ultimately it is the OTT’s who have
provided the opportunity to Operators to create their own services, or as I
like to say perhaps now is the time for Mobile Operators to go “OTT to the
OTT!”
