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Are mobile operators still relevant to consumers


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Mobile Network Operators relationships with customers are weakening day by day. The exponential rise of new simpler and richer forms of communication have already killed SMS revenue in markets such as the Netherlands and Spain.
Voice is the only remaining communication that operators control, but increasing mobile bandwidth (LTE) opens the door to even more Over-The-Top (OTT) providers.
Do operators still have competitive advantage? If so, for how long?

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Are mobile operators still relevant to consumers

  1. 1. The declining influence of MNOs over consumer communicationPhilip CooperDirector, Context mobile operators still relevant to consumers?
  2. 2. Voice and SMS legacy: Nothing has changed in 17 yearsThe Spice GirlsDancall DC1. I was so proudCore mobile communication:Voice and SMSNot The Spice GirlsiPhone. PopularCore mobile communication:Voice and SMS. Still!1996 2013
  3. 3. The world has moved on, we still only have SMS and voiceMen’s razors now have 5 blades at thefront and 2 at the backGerard ‘300 abs’ Butler convinces menwith masculine adjectives:(L’Oreal) Men Expert Hydra-EnergeticAnti-fatigue (Moisturiser)So they look good in the 3D, 4K worldExpectations have never been higher
  4. 4. Go back to basics: We communicate to fulfil a need“London public transportis rubbish… clients needto know I’ll be late”“Me and my best friendskeep in touch across theentire day”“I like to share pictures offunny things I see with myfriends”“My parents live abroad, Ineed to keep in touch withthem”“I need to make a call”“I need to send an IM”We don’t think… …there’s always a reason why…
  5. 5. People want benefits, not featuresIt all comes down to…Transactional communicationInform quicklyCommunicate simple factsUpdate or notifyMake arrangementsEmotional communicationExpress feelingsFeel close to othersCounter lonelinessReinforce group belonging
  6. 6. The door was left wide open for the Over-The-Tops (OTTs)Now thousands of apps offerhundreds of ways of communicatingDecorate and send your photosMake a group video callSend a handwritten noteAdd stickers and stampsChoose from a thousand emoticonsPlay games in real timeSend a video messageDraw and share a sketchNecessity is the mother of invention
  7. 7. Four threats to operator dominance of communicationRapid LTE adoptionOTT brands become establishedMergers and acquisitionsTechnology convergence
  8. 8. The next quad-play?Once OTTs provide most serviceswhat little relationships operatorshave with customers will vanishAll operators will offer me is accessto a data network so I can use othercompanies’ communication mediaWith their brand equity and offerslashed, little is left to compete withother than pricePretty soon I’ll think of operatorswith the same lack of affection I dothe Utilities WarehouseOperators soon to become a utility?
  9. 9. Operators still have the reach, billing …and the trustAll of your friends are onWhatsApp? Maybe, but I bet allof your address book isn’t onWhatsApp…You can immediately contactanyone in your address bookanywhere in the world and sendthem a message or speak to themAnd it’s all put into one simple billor top-up every month. Also,consumers know OTTs have poorsecurity, they are not regulatedYou have universal instant reach
  10. 10. Leverage remaining advantages to develop a relevant solutionListen to customers and their needs.Learn from the new mobile world andtheir business modelsEvaluate potential markets on ahuman as well as economicscorecard. Think Spain and SpanishLatin America, UK and Poland...Develop a solution with a great storythat consumers want to shareOperators must act before it’s too late
  11. 11. Context ConsultingPhilip Cooper, DirectorContext Consulting are trustedconsultants to numerous global mobileoperators and device manufacturersPhilip is regularly engaged to speak inpanels and presentations atconferences around the world,including MWC Barcelona 2013Email: Enterprising. Partner.