If Carriers Are Media Companies, Why Don't They Act Like It?
Many operators have spent the last few years saying they are really media and entertainment companies — but as Chetan Sharma points out in this guest column at GigaOM, they don’t act like it. “Media companies and mobile operators think about customers differently. Operators are focused on subscriber acquisitions, while media companies are fanatic about audience acquisitions. Operators think in terms of adding a few hundred thousand subscribers a month — media companies, of millions. In the Telco 2.0 world, where service providers aspire to become media and entertainment brands, shouldn
That was a good piece by Chetan, but a very limited observation. We believe, that their partiicipation could be very profitable, unless, of course they get their heads out of cloud nine & remotely attempt the 3 obvious issues:
1) CPM/CPT: Most telco Veeps have no flying clue about these. Cost per Thousands (Millions). In other words, brands will pay few dollars per thousands. Whilst, as we all know mobile talks about ARPU. Ave Revenue Per User. Somebody please tell me, which telco is charing the usual traditional media rates of US$15 CPT? Name ONE media telco? Wonder how P&G;would respond to an investment of $7/month/user –our usual telco rates?
2) Data Network: Did you know that for example, a particular telco in SOHO London, can only support 12 concurrent video calls over 3.5G? We are talking about the heartbeat of London, London the mecca for mobile services innovation…..I wonder how we could serve to millions concurrently for a P&G;campaign? The CPT of $20 for 12 people would amount to a grand total of $0.24. hmmm….
3) Data Costs: In many countries telco are using super savvy marketing of UNLIMITED data bundles, which in reality are only for wap sites and light surfing that do not amount to more than a 1 GB per person per month. So say, that telco A in UK charges 7.5 pounds per month and gives 1GB for the investment to the user. Now as brand owner try, please somebody do this, buying from Telco A, 1GB or even 100 GB at the rate of 7.5 pounds per GB. I bet you all my clothes I am wearing and my future Ferrari, that the Telco WILL NOT give you at that rate. You probably, as a brand, be offered around 700 pounds per GB. Naturally, like any full brainded being, you ask why. You will be soon reminded, that you are indeed not a full brained being and that the Telco A does not expect everybody to use up 1GB per month for the 7.5 pounds. To add to it, they will say that the network is not ready for mass usage of 100 GB.
So at the end of this exercise, you the brand owner, will be walking home bemused and still wonder what this hype about mobile data for the last 10 years is all about since the networks are built NOT TO BE USED all the time.
Keep on watching this space. We are certain, something incredible about is to happen.