Gross revenue and profit margin are the reasons virtually all telco executives globally worry about the business impact of over the top applications. In the past, telcos have sold "applications" tightly bundled with a network access, network transport and switching function.
In a broad sense, that still is true. High speed access services actually is an application (Internet access) bundled with the network access and transport functions. Video entertainment likewise is a video app delivered using the network, while text messaging also involves a text-based communication app bundled with use of the network.
And no matter what telcos do in the future, it will always be true that most of the revenue will be earned from apps that integrate use of the network.
“Revenues from those new streams will be small in the short term and the medium term, too,” Informa & Media principal telco analyst Thomas Wehmeier says.
Wehmeier forecasts such services accounted for just 0.7 percent of global carrier revenue ($7.7 billion) in 2012.
Tuesday, October 23, 2012
Telco "Apps" Aside, Most of the Money is in "Access"
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.
Subscribe to:
Post Comments (Atom)
Which Firm Will Use AI to Boost Revenue by an Order of Magnitude?
Ultimately, there is really only one way for huge AI infrastructure investments up by an order of magnitude over cloud computing investment ...
-
We have all repeatedly seen comparisons of equity value of hyperscale app providers compared to the value of connectivity providers, which s...
-
It really is surprising how often a Pareto distribution--the “80/20 rule--appears in business life, or in life, generally. Basically, the...
-
Is there a relationship between screen size and data consumption? One might think the answer clearly is “yes,” based on the difference bet...
No comments:
Post a Comment