Friday, October 12, 2012

Welcome to the Disruption Era! 23 BUSD of lost revenues for Telcos in 2012 because of free SMS


Prof. Clayton Christensen Disruption Model
23 BUSD loss
Free messaging on smartphone, like Whatsapp, cost Telcos companies worldwide in 2012, 23 Billions US dollar on missed SMS-revenues, according to Ovum, in a recent report published in October 2012.

In the Ovum report, it is expected that losses could reach 54 BUSD per year by 2016.

What Telecom operators must do now? what are their choices? their options? their strategies? 
First, Telcos should start understanding, much better than they are doing, the influence of social applications on the consumers behavior. Secondly, start offering services that address these new consumers trends and behaviors.
In Ovum report, it is clearly observed that an increasing number of companies are using more and more social messaging services. This does not seem to be a short term trend but a complete shift in communication pattern.
In 2009, SMS provided 57 percent of 'non-voice' revenues to Telcos. In year 2012 this percentage will go down to 47 percent.

Once again the 'Free' business model has prevailed. So what is exactly Whatsapp business model?

2 comments:

  1. This was the first of several of these mega- philanthropist "recruiting" dinners. It is not public knowledge how many of these billionaires signed up for the Giving Pledge, but Gates and Buffet are said to be making a huge positive impact.

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  2. Mobile broadband business models 3G LTE Networks is changing the face of business. Ericsson created mobile broadband over twenty years ago and since then Ericsson WCDMA


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