Sunday, June 28, 2015

Is it Too Late for Mobile Operators to Gain Mobile Ad Share?

Is it too late for mobile service providers, telcos and cable TV operators to gain a significant share in mobile advertising? Nobody knows yet. 

It probably is not possible to get a leading share, so the point is whether it is possible to gain a significant share, across the payments, streaming and app fronts. 

If it does not prove possible, Internet service providers are going to face increased pressure in their core access business, as advertising has enabled software and content businesses in the past. 

But advertising increasingly could be the marginal contributor even for Internet access businesses, providing just the required amount of incremental revenue to enable widespread Internet access subscription models. 

The other unresolved issue is whether ISPs can create significant new managed services revenues to offset pressure in the commoditized Internet access business. 

Whether those new revenue sources come from streaming video, home security, health services or connected car apps does not matter so much. At the moment, nor does the relative revenue contribution matter so much.

What matters is discovering and creating the new managed services models to offset legacy service declines and commoditization of simple Internet access services. 

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