By Hisham Isa, Vice President (Marketing)
As Mobile Commerce takes centre stage, two related and recurring topics are likely to dominate discussions in the mobile industry over the next year: Fragmentation and Over-the-Top services.
Enter OTT Players
Let's start with a definition. What is OTT or "Over-the-Top"? These are services delivered over carrier networks, but which do not directly engage the carriers. Some of the best known examples of OTT services are Google, Yahoo!, mySpace, Facebook, YouTube and iTunes.
Carriers often perceive these OTT players as a threat because they push data traffic to new heights as surfers consume more content. This should be good news for the carriers, right? Well, only if they charge per MB. Competition between carriers, though, is pushing their margins down and has led to more unlimited surfing plans. The increased traffic is also making demands on carrier infrastructure.
Some OTT services compete directly with carrier offering and eat into telco profits. Free mobile messaging is a case in point; consumers who use this service send fewer SMSs.
Meanwhile, the brand value and profits of popular OTT companies rise, while carriers become more and more transparent. This OTT revenue is going to re-kindle the debate about their services, namely business models, regulation, technology and invariably 'ownership' of the consumer.
To this end, carriers are forming new relationships and alliances, which explains a slew of announcements about mobile payments, particularly in the US and Europe . . .
. . . and more recently around mobile advertising networks:
Moving forward, developers, marketers and brands will need to focus more on cross platform tools like HTML5 and develop their campaigns around a multi-screen experience.
As Mobile Commerce takes centre stage, two related and recurring topics are likely to dominate discussions in the mobile industry over the next year: Fragmentation and Over-the-Top services.
- Which mobile platform and mobile device will be the preferred choice of consumers?
- How will they pay for services?
- And how will carriers adapt?
Enter OTT Players
Let's start with a definition. What is OTT or "Over-the-Top"? These are services delivered over carrier networks, but which do not directly engage the carriers. Some of the best known examples of OTT services are Google, Yahoo!, mySpace, Facebook, YouTube and iTunes.
Carriers often perceive these OTT players as a threat because they push data traffic to new heights as surfers consume more content. This should be good news for the carriers, right? Well, only if they charge per MB. Competition between carriers, though, is pushing their margins down and has led to more unlimited surfing plans. The increased traffic is also making demands on carrier infrastructure.
Some OTT services compete directly with carrier offering and eat into telco profits. Free mobile messaging is a case in point; consumers who use this service send fewer SMSs.
Meanwhile, the brand value and profits of popular OTT companies rise, while carriers become more and more transparent. This OTT revenue is going to re-kindle the debate about their services, namely business models, regulation, technology and invariably 'ownership' of the consumer.
Mobile Payments
Like the OTT players, telcos want to create new revenue streams based on forming direct relationships with the consumer. There are a number of value-added possibilities -- like offering voicemail and voice over IP -- but the most popular at the moment appears to be mobile payments. Carriers are entering the space to clear payments, just like a credit card company but using different technologies.  |
| Mobile payment systems -- like "Simply Tap" in the UK -- are becoming more widespread and easier to use. |
- AT&T, Verizon and T-Mobile Set to Begin Testing Mobile Payments Venture (17 November 2010)
- Vodafone, U.K. Operators, Form Mobile Payment Joint Venture (16 June 2011)
- BNP Paribas and Orange partner to launch the first entirely mobile banking offer in France (26 July 2011)
- French Mobile Carriers Form a Mobile Payments Joint Venture (4 February 2011)
- Swedish operators form mobile payment joint venture (18 November 2011)
- Mobile money: Using your phone to transfer cash (22 February 2012)
. . . and more recently around mobile advertising networks:
- SingTel buys US mobile advertising firm Amobee (5 March 2012)
- The UK’s three biggest mobile operators..... to launch a new advertising network (21 March 2012)
Moving forward, developers, marketers and brands will need to focus more on cross platform tools like HTML5 and develop their campaigns around a multi-screen experience.
