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Telecom revenue 2.0


Over-the-top players are better at understanding how people communicate. New disruptive solutions can undermine traditional enterprise solutions, e.g. PBX versus virtual PBX. Mobile network disruption is possible, e.g. White spaces. Data is exploding due to mobile Internet and especially mobile streaming video. Unknown players in the telecom space 5 years ago are now dominating the industry, e.g. Apple and Google. ARPU’s are melting faster than snow in the sun. IP requires new skills compared to circuits.

All these problems result in one need for telecom operators: new revenues. However existing telecom providers see a more lucrative market in deploying the next generation of network technology: LTE.

If operators want everybody to understand that their new priority is generating new revenues then they need a new term for it. My proposal: telecom revenues 2.0.

Why is it important to have a new term?

Lots of telecom suppliers still think that by virtualizing their existing solutions, e.g. VAS, or by selling some “innovative” rich communication suite that is 3 years behind OTP offerings, they can offer new revenues for the telecom industry. Unfortunately Joyn and other similar solutions are too few too late to make a real difference. We need a lot bolder solutions if telecom operators want to be more than bit pipes. This is where telecom revenue 2.0 identifies those solutions that can bring a new beginning to the telecom industry. It will also clearly identify where R&D budgets should be spend. That is if telecom operators clearly tell their providers that telecom revenue 2.0 will be their second biggest destination of investment after LTE. Operators that think that revenue share will automagically being them telecom revenue 2.0 should think again. Dotcoms are not getting money from Venture Capitalists if their revolutionary service involves telecom operators. The reason is that telecom operators are seen as too difficult to work with and too greedy when it comes to revenue sharing. Investment either in joint R&D or seed capital are needed if telecom revenue 2.0 is to become a reality. The alternative is clear: shrink and be happy to survive as a bit pipe….

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