Tuesday, November 28, 2006
Mobile Data, Multiple Revenue Streams
Multiple revenue streams are better than just one. Cable companies get paid by customers, some program networks and advertisers. Newspapers get paid by subscribers and advertisers. So one obvious way communications companies can get ahead is to expand the range of revenue sources, diversifying away from exclusive reliance on end user recurring fees. Advertising and content sales are the obvious early candidates.
So far, though, this is most logically provided on a mobile smart phone, personal media player or PC, or on a telco IPTV service. Standard telephones just don't seem to be part of the picture. Which is one reason why visually-oriented IP communications sooner or later will be a standard telco offering.
So far, U.S. wireless providers, for example, have quite some way to go before new services revenues contribute anything like the revenue voice services do. All U.S. mobile revenues from sources other than voice will amount to about $5.4 billion this year. Total revenues will probably top $110 billion this year.
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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