January 23

Why don’t device manufacturers complain about ‘Over The Top’ ?

Telecoms

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I just came across this nice summary of global market revenues associated with mobile technology, courtesy of BCG.  $3.3 trillion in 2014.

Mobile revenue split 2014
Source:
“The Mobile Revolution”, Boston Consulting Group, 2014

What struck me (by virtual of the two-dimensional layout rather than a typical one-dimensional value-chain diagram) was that the $530 billion mobile content and apps market – generally seen as freeloading “over the top” services by mobile operators, depends on both communication services ($1 trillion of spend) and mobile devices ($520 billion of spend).

Pretty darn obvious, that, of course.  But despite the fact that content and apps are “over the top” of both services and hardware, it is interesting that…

  • Communication device players don’t complain about how ‘OTT’ demand is driving them to develop newer and better products with more storage, faster CPUs, etc.
  • People shrug their shoulders at non device neutral strategies (Apple…) and get all heated up at the mere thought of (probably impractical) non network neutral strategies.

Just sayin’… Get the business model right and things get a lot simpler.


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About the author 

Richard Medcalf

Strategist, consultant and business leader with 15 years experience in helping companies thrive in an Internet world. Formerly a partner in strategy consultancy Analysys Mason; now at Cisco Systems, developing new strategic partnerships with leading telecoms players.

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