Mobile Operators – Are They Preparing for the Digital Battle?

January 13, 2016 - Openet

The number of traditional “pure-play” mobile operators is in decline as global consolidation continues at pace. Despite declining operator numbers, competition has never been so fierce – it’s just coming from non-traditional players in the market. The battle between operators and over-the-top players is never ending, and Wi-Fi-first mobile virtual network operators and free Wi-Fi services are becoming more established. Operators are already coming to terms with commoditized voice and text-messaging services as voice over IP and OTT messaging have cannibalized revenues. Mobile data looks certain to follow unless operators act decisively to prevent it.

To do so, mobile operators need to diversify their data service offerings in any way they can. One potential way to do this is by building innovative new partnerships outside of the traditional domain of the mobile operator. In particular, new partnerships with digital service providers such as Netflix and Deezer, travel insurance and home security providers offer lucrative opportunities operators shouldn’t ignore. So what’s holding them back?

Preparing for the digital battle

Openet recently surveyed 101 mobile operators to understand their readiness for migration to digital services. The results revealed an initial degree of optimism in spite of huge competition from VoIP and messaging OTT providers like Google, Skype and Facebook. In fact, 57% of operators think they are well prepared for the battle, citing their key area of competitive advantage as the strength of their network. Operators also believe a core differentiator lies in the customer trust they enjoy, alongside the fact they have a large customer base with an ongoing billing relationship delivering strong, sustained revenues.

Read more at RCR Wireless


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