Revenues from mobile content could amount to US$52 billion in 2013 if mobile operators pursue the right strategies. If they fail to implement new business models then they could end up as simple dumb pipes, says a new report from Juniper Research.
Mobile operators need to change their mobile content business models to emphasise shared value creation. In today's mobile content environment, mobile operators retain a significant percentage of the revenues generated by the content providers who use their networks. This business model means end-users pay a high price for accessing mobile content and, ultimately, lose interest. This acts as a disincentive to content providers who either attempt to go directly to the end-user or exit the sector entirely. This is an unsustainable scenario which could severely impact on the revenue streams operators hope to win from mobile content. However, the report emphasises that mobile operators must make the first move to break this impasse.
If mobile operators can change their ARPU-driven mindsets to focus on value creation and support for their partners, they can swiftly make the change, the report concludes.
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