Telecom
Providers are seeking to generate more revenue in the countries they operate.
This as most of them tend to be heavy on Prepaid Customer and not postpaid
So
they want a greater share of OTT and Advertising sales as pointed out by
Digicel’s Chairman, Denis O’Brien in the article “Digicel
Wants Telecoms To Get A Share Of Internet Revenues”, published Saturday
July 22, 2017, The Jamaica Gleaner.
Denis O’Brien made these comments while speaking at the 17th Global Symposium for Regulators in Nassau, Bahamas in early July 2017. Regulators from over 60 countries were in the audience, so his message was clearly pitched towards them.
His view is that telecoms operators need to be
given a share of revenues from advertising and over-the-top (OTT) services. OTT is streaming video and audio
content such that Netflix that bypasses cable or satellite operators.
His
idea is that tapping into the extra markets can fund further expansion of
broadband networks in developing countries. After all, the purchase of telecoms
licenses, paying for spectrum and then having to pay taxes as a percentage of
revenues reduces the funds available to expand as rapidly as they would want to
satisfy demand.
But
is this the way to go?
Digicel want OTT and
Advertising Money - International Regulators might take the bait
It
may just be, actually.
Were
the International Regulators to allow Telecom Providers to tap into OTT and
Advertising, this would be a game-changer for Digicel and FLOW. It could make
their 4G LTE Networks profitable, especially FLOW's soon-to-be-launched LTE
Network as hinted in my Geezam blog article
entitled “FLOW Lyf
Increased Free Data for Prepaid & Postpaid heralds Unlimited LTE”.
It
would also justify future investments in faster technologies such as 5G which
CWC is already testing in Barbuda as noted in my Geezam
blog article entitled “CWC first Caribbean
LTE-A Pro trial in Antigua heralds 2 to 5 Gbps 5G Networks”.
If
this appeal sits well with regional government, we may see streaming of Digicel
Play content and Digicel advertisements in our apps.
Revenue from ads and
OTT – Focus on Postpaid Sales needed to push new ventures
So
Digicel interest in making money from online advertising on phones in the
region may be a part of a long-term plan that goes beyond more than just
building out bigger Telecom Networks.
It
may be the first signs of them transitioning away from being a Mobile company
to an Internet based company, building revenue on apps and content rather than
just providing service as explained my Geezam blog
article entitled “Why
Digicel More may woo Jamaican Developers with Advertising partnerships”.
Already
Telecom Provider Digicel had blocked Advertising from Search giant Google as
reported in my Geezam blog article entitled “Why
Digicel blocking Google ads may be the rise of Digicel App World”.
As
for making more money from OTT, it would help their Digicel Play Network to
expand beyond the Caribbean, as they could launch in countries around the
world, increasing their current numbers as noted in my Geezam blog article entitled “Digicel Play has 35,000
customers as FLOW Jamaica Horizon fails to impress”.
Still,
both Telecom Providers need to boost sales for Postpaid services on Mobile,
which is non-existent in both companies. If there is no love for Postpaid
services, then they will have little uptake for Postpaid OTT services and
advertising in app, especially as Jamaicans and Caribbean Nationals hardly
download apps anyway.
Focus
on Sales to boost Postpaid services, and everything else will fall into place.
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