The new four giants are eating away at the profit margins of traditional telecoms firms

Source: Internet
Author: User
Keywords Operators
Tags analysis android android system app app store apple application applications

Absrtact: Recently, the mobile browser company Skyfire Ceojeffrey Glueck Author, the current telecommunications market analysis. He points out that over the years the telecoms market has been dominated by several big telecoms giants. Today, there has been a major change in the market, which has

Recently, the mobile browser company Skyfire Ceojeffrey Glueck Author, the current telecommunications market analysis. He points out that over the years the telecoms market has been dominated by several big telecoms giants. Now, the market has changed significantly, the market has emerged a new "four giants", they are: Apple, Google, Facebook and Amazon, the new four giants are eating away the profit margins of traditional telecoms companies. Will traditional telecoms operators bounce back and regain control of their destiny? Personally, I don't think anyone can say yes.

Wireless carriers in the United States have been controlling the content, distribution and policymaking of the telecoms market. But in 2007, with the introduction of Apple's iphone, it all began to change. This is a huge "contagion point", marking the at&t, Verizon and other operators to the terrible "wordless channel."

Of course, for these wireless operators, they still have a lot of room for manoeuvre, they have a credible brand, and in the next year they may have a major move to confront the challenges of their new rivals. The author believes that in the following areas, 2012, wireless carriers may be able to comeback:

Operating system and equipment market. Now, wireless carriers are concerned about the dominance of Apple, Google Android and Samsung in mobile ecosystems. Verizon and other operators, for example, must pay billions of of billions of dollars in subsidies to sell iphones. The popularity of the iphone and the ipad, for Verizon, means that these subsidies are also a good opportunity to attract subscribers, but in the long run these operators are reluctant to see the dominance of both Apple and Google in controlling the market's voice.

Therefore, operators must seek to develop third-party operational ecosystems to counter Apple and Google. The recently launched Nokia Lumia 900 is an important move to promote Nokia Microsoft Alliance products against Apple Google. If rim can produce products that the likes of which they like, the operator has a greater chance of resurgent.

To be aware, in the U.S. market, wireless operators have huge marketing inputs, a large number of retailers, call centers and price products. Google had previously tried to sell Nexus Android products directly to consumers, but failed, because the product was priced at $500 and without operator subsidies.

Second, application products and application stores. Operators are also looking for opportunities to integrate themselves further into the App Store system, especially Android. As the current Android market is large and unsupervised, it is difficult for consumers to find quality, trustworthy products from millions of of applications. To this end, operators have launched their own application stores to replace the Android system. Recently, Verizon has announced a partnership with the app search engine chomp to enhance its own application product service capabilities. Around applications and content, operators are unwilling to lose their influence and recommendation.

The emergence of HTML5 is another opportunity for operators, which is another trend that the industry should pay attention to. Operators can use the HTML5 Network application platform to touch consumers without having to go through an Apple or an Android system. Indeed, A&t has recently announced the launch of its own HTML5 App Store, and Verizon is taking similar steps.

Third, mobile payment. For operators, the long-term solution is mobile payments. In product development, Google and PayPal and other giants have been in the market leading several years. Google Wallet is currently the only mobile payment system used on mobile phones in the US market. Verizon and other operators are now blocking Google's wallet for use on its products. Verizon, At&t and T teamed up to launch ISIS and promote it to existing credit card dealers, planning to charge for a single product, access to valuable data, coupons and advertising platforms. They are proving to the market that they are not being squeezed out of the mobile payment market, but they have a share of their own applications.

Iv. Network Management. If operators want to regain control of their mobile ecosystems, they must control their networks. Mobile data flowing through wireless carriers ' networks will grow 18 times times over 2011-2016, according to Cisco's VNI research. Application and browsing traffic, especially from cloud services and on-demand streaming video, will greatly enhance network functionality. By 2016, video will account for 71% of all wireless data traffic.

And the video models developed by Apple and Google will be hard to popularize on the Internet. For example, on the HTML5 network platform, the mainstream video mode is Mp4,mp4 is an advanced download mode. The industry predicts that MP4 currently accounts for nearly half of mobile video content and is growing fast. More recently, the Alexa Global 100 video publisher data showed that only 18 of the top 100 had an adaptive video model.

In the future, 4GLTE network may help alleviate network congestion problem, but can not fundamentally solve the network data is not smooth phenomenon, because the data growth is 18 times times, and 4G network can only increase network capacity about 4 times times more. To do this, operators can reassess the network solution to regain control from Google Apple.

It will take time to see if operators can make a comeback, control their own destinies and avoid a dead end.

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