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Operators could tap $26billion from digital services

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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.”

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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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