Tuesday, March 12, 2013

One Recurring Problem for Mobile Service Provider Innovation

There is a recurring and major issue where it comes to new lines of business mobile service providers might like to launch, namely the smallish size of the opportunity. Some might point to location-based services as obvious candidates for mobile service providers. 

That is a reasonable assumption at a high level. At a practical and granular level, it is more difficult to achieve revenue commensurate with effort, in many cases. Consider the "new $300 million"  network-based location information opportunity. 

“We see a range of new "location information services" emerging around insurance, banking, analytics, M2M/MRM, advertising, hospitality and IVR," says ABI Research senior analyst Patrick Connolly.

That might be true, but will not immediately be so attractive to any single tier-one service provider. More likely, third parties will take the lead. 

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