Operators could tap $26 billion from digital services
Operators need to invest in acquiring the capabilities to take a larger share of those digital services’ value chains if they hope to supplement their revenue from core communications services.
In all, Analysys Mason has predicted that some $26 billion in revenue from key digital services could be captured by telecoms operators in 2022.
Analysys Mason report entitled “Digital service opportunities for operators: worldwide trends and forecasts 2017–2022” said that “We expect rapid growth in operators’ revenue from the four key digital services analysed in this report: mobile money and payments, mobile commerce, digital advertising and mobile identity management”.
Enrique Velasco-Castillo, report author, explained that “However, this revenue is not guaranteed”, says Velasco-Castillo. “Operators need to take firm steps to establish themselves in these services’ value chains. Substantial investments and a long-term innovation strategy are necessary for operators to compete with incumbent players such as banks for financial services, or regional ecommerce leaders.”
The digital verticals analysed in the report could represent a combined revenue for operators of USD26.1 billion worldwide by 2022. This is equivalent to 3% of core mobile service revenue forecast for that same year.
Key findings from the report include: Mobile money: operators’ revenue is expected to reach USD2.1 billion in 2022.
However, operators’ share of revenue will decline by 1.7% between 2017 and 2022 due to strong competition from regional and global players; mobile commerce: USD4.3 billion in revenue from m-commerce transactions could be accrued by operators in 2022; digital advertising: Operators could capture 5.6% of digital ad spend worldwide by 2022, equivalent to USD17.5 billion; and identity management: Operators are expected to attain 16% of the mobile IdM market worldwide, representing USD2.2 billion in revenue by 2022.
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