The profitability of conventional voice and data services for mobile network operators is under threat worldwide. Additionally, mobile network operators are caught in a three-way fight with handset manufacturers and content providers for control of the subscriber – and therefore who stands to benefit most from the convergence of wireless services.
In order to counteract the risks of declining revenues and EBITDA margins, mobile network operators need to find novel and increasingly profitable customer offerings and services – and, in particular, need to find services and technologies where they have significant control over the value chain as opposed to simply becoming a medium for other businesses to access what were (historically) their captive subscribers. Effectively, mobile network operators require Next Generation Networked Services to provide growth, profitability and to prevent them from following the decline of the traditional wireline model.
This step-change in technology also provides a significant opportunity for those mobile network operators ready to act dynamically - with access to millions of subscribers, and Web 2.0 users who are increasingly expecting rather than impressed by interactive and multimedia products and services, certain mobile network operators are uniquely positioned to control the distribution channel for a variety of digital information and tangible goods. These mobile network operators need some form of “sticky”, value-added services and competitive differentiators to generate additional revenue and enhance customer loyalty – a combination of multimedia content, multi-player offerings and social networking, and personalised and localised information and services.
Finally, to maximise the potential of these services and applications, they must also be able to provide multiple payment options seamlessly and securely – on a variety of devices, and over multiple channels and technologies – as well as to provide access to a variety of merchants and service providers, to enable their subscribers to conduct commerce and increasingly “live” through their mobile devices.