How can mobile operators look beyond falling traditional revenues

INSUBCONTINENT EXCLUSIVE:
first arrived in the 1980s, priorities of mobile users have shifted significantly since the first iPhone and first Android devices launched
consider web browsing to be important.Traditional revenue squeezeOne of the reasons for the drop can be attributed to the popularity of
and other applications exceeded those sent via SMS and now the distinction between native messaging and over-the-top (OTT) services
In 2016, 89 billion SMS messages were sent but this is set to fall to 64 billion in 2018
In 2020, the figure is expected to be 40 billion.And in Europe, operators are counting the cost of the abolition of roaming charges within
the EU
While most cost-savvy customers have used Wi-Fi and/or OTT services to avoid most charges, it means that additional levies on data
consumption are now outlawed.The opposing argument is that mobile operators stand to benefit from greater demand for data services and there
is some truth to this as carriers seek to increase revenues with more generous bundles and bigger data allowances.But these trends are
Intense competition between four major providers is also playing a role.Future of networksWith mobile operators having to invest billions to
upgrade their existing 4G networks and to prepare for the advent of 5G, this is a worrying trend
No one wants a repeat of the 3G era when there was precious little capital to invest in infrastructure (although this was due to crippling
spectrum licences).But there is hope
and Netflix profit from
operator to see everything that happens on their network, whereas OTT companies can only see what takes place within their application, is a
huge advantage.5G represents a significant opportunity to connect more things and deliver more services, while it also hoped that new,
virtualised infrastructure and next-generation equipment will lower operational costs.A golden opportunityThere have also been moves to
regulate OTT services more closely
The mobile industry has long complained that it is subject to obligations that rivals like WhatsApp and Skype are not
Google is working with operators around the world on Rich Communications Services (RCS), which is seen as a successor to SMS and a rival to
iMessage
RCS combines the rich content of instant messaging with the universality of SMS and is targeted at both consumers and businesses.Analysts
also believe that the short-term decline in roaming revenues within the EU could be offset in the medium to long term by the increased use
of mobile phones abroad
could see more calls and texts being made or bigger bundles being taken out.The past decade has seen irreversible changes in how people use
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