Thursday, May 8, 2008

Mobile content as the key to profits

Today, or to be more precise, the last two years, we have seen an enormous transformation takes place. The concept of mobile devices is increasingly associated not with users of wireless data transfer technology or properties of a specific device. Nowadays mobile devices - is, first of all services for which users are willing to pay money and provide for the right "who among telecommunication operators is a real battle.

For several years, the research company Gartner analysts called the company Amdocs number one player in the field of solutions for business support. In 2007, turnover from this supplier billing and CRM systems grew by 14.5% - up to $ 2.8 billion Still, Amdocs affairs are not as good as they would have liked. The capitalization of companies are already over two years remained at approximately the same level - around $ 6 billion So on Amdocs affects global stagnation in the telecommunications industry, because most of its customers - operators. Revenues communications barely grow, so now they are not up to new billing systems. Nevertheless, Vice President Charles Born Amdocs is optimism, which he willingly shared with reporters. According to Charles Born, mobile internet still has not gained widespread popularity is largely due to the imperfections of cellular phones on the background of relatively low incidence of smartphones and communicators. Until recently, the market was extremely little mobile devices through which it would be really convenient to deal with web-surfing. In many ways this is the secret of great surprises commercial success Apple iPhone. It turns out that the company Apple pointed to other manufacturers of mobile gadgets, in which parties need to move. There is no doubt that soon we will see many new products, printers, photocopiers and developing ideas realized in the Apple iPhone. From Asian developers in recent months come one after the other messages on the development of communicators who could be called a "clone iPhone". And the next breakthrough in this sector seem to already be expected from Google.

However, in terms of mobile operators remains another problem. Today, users deters huge gap in price between mobile and wired Internet traffic. Recent developments (in particular frequency auction sales in the U.S.) indicate that, perhaps, cellular operators will lower prices by using the business model of television broadcasters. That is, will distribute cheap (or even free) content in exchange for running / listening to advertisements. The difficulty here is that the telecommunications operators themselves do not quite know how to sell advertising. Neither one of them she did not even 1% additional revenue. But this is an excellent professionals from the content and service - at the same Google, for example. But Google does not hurry to help operators - there telecommunications own cherished ambitions. Largely because of such forces hand so much noise Done in the telecommunication community recent statement by Director General of Vodafone Group Aruna Sari-on. Quote: "I really feel that this year mobile advertising finally become a real business for cellular companies." According to the specialists firm ABI Research, over the next six years, cellular companies advertising revenues will grow by more than order-from $ 1.8 billion in 2007 to $ 24 billion in 2013 - m. It turns out that telecommunications operators expect "thaw" to unfreeze their incomes, frozen at the same level in recent years. However, on the other hand, began selling its own advertising and production mediakontenta, operators visiting unfamiliar territory before them, where other rules and other regulatory legislation. Add here numerous difficulties with software for mobile devices (such as the lack of generally accepted standards) - and get a truly frightening cocktail problems.

But another danger, surfing cellular company. Born Charles said: "Mobility - this is not a technology or property of any device. Today it is primarily service." And this service can provide not only cellular operators, but also Internet providers, and suppliers of Internet services and content like Google or Yahoo. And in the near future they may well become even broadcasters, now successfully mastering the Internet. The battle in this field has already begun. In March, U.S. summarizing the tender for the sale of frequencies, which in 2009 - m released by the cessation of analog television broadcasting. The largest portion of the spectrum inherited the largest U.S. mobile operators Verizon and AT&T. But even before the contest company Google "selling" in the governing bodies of a special amendment to the conditions of the tender. It allows access to transfer data at these frequencies is not only mobile operator under the brand-owner, but also any other gadget. That is the American operators, a significant portion of the proceeds of which still accounted for the sale of devices under its own brand, will be required to connect to its network and owners of other phones. In the future, a new rule could spread to computers. And in the end, these days the line between mobile phone and PC is becoming increasingly thin. And about the amendments initiated by Google vice president of Amdocs said: "For subscribers in many other countries, who are accustomed to freely choose their phones, it has little meaning. But for most Americans and Europeans, this can be a real cellular revolution!"

Data transmission and sale of content mobile operators have increasingly prominent share of profits. Born Charles believes, already by 2011 negolosovye services will bring to operators not less than a quarter of income. But operators still need to restructure the structure of its business. The point is that now virtually self sotoviki - they depend only on government structures that provide them access to telecommunications infrastructure and legislation governing their activities. But to earn a sale of digital content, operators will inevitably have to interact with hundreds of intermediaries - from Internet providers and banks to retail networks. Thus, operators, in the words of Born, will eventually complete "digital retail, selling products (content and services), created by third-party firms. And this is a very different business model. Of course, one can not exclude such an option and developments in which telecommunications companies will seek to continue to monitor the entire production chain. That is, will themselves create content, launch new services, etc. Charles Born on this occasion said: "Maybe someone will do well. No user preferences are changing so rapidly, that will easier to buy finished products on the market than to create their". We can not forget and marketing law: new to most having a weakness for so-called "thick" subscribers, such as those that generate the most money operator. But if you take the first option - "outsourcing" - a trend around the creation of large cellular companies huge Cooperations of the hundreds of companies will help manufacturers develop business systems. For example, in February this year, Amdocs has proposed a new platform for operators to work with advertisers, publishers and retail chains. Promoting this platform, Amdocs is no longer a supplier of software, but also acts as a business consultant. Born Charles explains: "We sell own vision changes in the market. Indeed, the faster changing technology, the more difficult telecom companies predict their own development, and another professional opinion is not hurt".

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