APPS WILL CHANNEL US$36 TRILLION IN REVENUES THROUGH OUR MOBILE DEVICES - CAN TELECOM OPERATORS GET A SHARE?
Half of the world’s GDP is being transformed by a new value chain built on affordable bandwidth andthe foundations of OS/Apps. As 2.5 billion people gain access to the Internet through mobile devices,apps are reinventing industries such as media, music, games, retail, banking, health, insurance,education and gambling industries. The Internet industry itself is being reshaped as users move fromthe Web ‘dominant portal’ model (e.g. Yahoo, Facebook) into the OS/App world, where companiesinteract with users without intermediaries.
The new App-based services are changing the way people interact, enjoy entertainment and conductbusiness. Multiple industries are being reinvented as new processes and business models get introducedleveraging (1) mobile broadband everywhere and super-fast fixed broadband, (2) everything becomingdigital and available on the cloud, (3) social networking and (4) electronic transactions.
But what is the reach and potential of this transformation?
Delta Partners’ latest white paper looks at the strategies deployed by Apple, Google and other leadingtechnology companies, and examines the odds of telecom operators securing a share of this new valuechain. The white paper entitled “Telecom operators positioning in the App economy” maps thechanging ecosystem and defines the best way forward for telecom operators.
The white paper looks at how operators should navigate the storm, comparing different strategies suchas those purely focused on connectivity (‘efficient pipe’) to those aiming to compete with the likes ofGoogle, Facebook and Apple (the Operator 2.0 strategy).
The paper lays out the rationale for operators to focus and strive for either the ‘smart pipe’ or the‘efficient pipe’ positioning by defining the new App value chain, illustrating strategies and roles of keytechnology firms within the App economy and finally earmarking specific parts of the value chain aspotentially relevant for telecom operators to still play a role. The paper stresses further that the‘Operator 2.0’ strategy currently pursued by many operators will likely remain a mirage.
“Operators and technology firms need to understand each other very well to set winning strategies.The winner will vary depending on the type of markets and the players involved” says Joao Sousa,Partner at Delta Partners.
Delta Partners is the leading TMT specialist advisory and investment firm.
To download the full white paper, please visit www.deltapartnersgroup.com/our_insights/whitepapers
About Delta Partners
Delta Partners is the leading TMT advisory and investment firm in high growth and emerging markets. With more than 180 professionals the firm operates across 50 markets in the Middle East, Africa, Eastern Europe, Emerging Asia and Latin America. Delta Partners provides three synergistic services: management advisory, corporate finance and investments from its offices in the UAE, South Africa, Spain, Singapore and Colombia.
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