Whatsapp? What the hell is app?
Ovum's new report details the violent battering operators are getting from 'over the top' entrants into the social messaging space such as BBM and Whatsapp.
It says these imposters cost telecom operators $8.7bn in lost SMS revenues in 2010, and $13.9bn in 2011.
They now account for six per cent of total messaging revenue in 2010 and nine per cent in 2011.
Ovum says operators need a coherent strategy to fightback to include tapping into the creativity of app developers, working with OEMs, forming industry-wide collaborations, and leveraging their usage data and relationships with subscribers.
They could even turn threat into opportunity.
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Neha Dharia, consumer analyst at Ovum and author of the report, said: “This threat will drive telcos to consider alternative sources of revenue, such as mobile broadband. And now the market has been tested, operators know what types of messaging services work.
“In addition, operators are in a position of strength because they control the entire messaging structure through their access to the user's phone number and usage data. The established billing relationship is a great advantage, as is the fact that operators control to a great extent the services to which the user is exposed.”
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2 comments
Hahaha another reoprt written by analysts repeating the old mantra that operators are in a position of strength. Why loose 13 billion from a position of strength? Just because operators are nice guys - or stupid? ;-)
Has ony of you analysts recently set up a new smartphone (Android or Windows Phone)? Try it and you will understand why the operators have great assets but just stand in their corner and watch others taking those assets away. If you save any new contacts smartphones will primarily ask you if you want to save it to Google and Co. This is the rapid death of the operator adress book asset. Investing into RCS-e anyone stupid while selling Android smartphones?
Alexander Trommen Feb 21st 2012 at 8:25PM
0 0Have not read the Ovum report, but wondering if they took into account that
1) most people have more txt allowance than they can possibly use. This allowance is 'prepaid' or part of the monthly subscription so actually operators have already cached money for txt messages that will never be used.
2) people using BBM and whatsapp kind of apps would not have send so many messages if they had to pay for it.
3) they get a part of the cake via data traffic income (which is the reason why most user don't use Skype over 3G even though it's available)
Charles Roels Feb 23rd 2012 at 9:34AM
0 0