Half of the world’s GDP is being transformed by a new value chain built on affordable bandwidth and the 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 from the Web dominant portal model (e.g. Yahoo, Facebook) into the OS/App world, where companies interact with users without intermediaries.
The new app-based services are changing the way people interact, enjoy entertainment and conduct business. Multiple industries are being reinvented as new processes and business models get introduced leveraging (1) mobile broadband everywhere and super-fast fixed broadband, (2) everything becoming digital 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 leading technology companies, and examines the odds of telecom operators securing a share of this new value chain. The white paper entitled Telecom operators positioning in the app economy maps the changing ecosystem and defines the best way forward for telecom operators.
The white paper looks at how operators should navigate the storm, comparing different strategies such as those purely focused on connectivity (efficient pipe) to those aiming to compete with the likes of Google, 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 key technology firms within the app economy and finally earmarking specific parts of the value chain as potentially 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.