October 30th, 2006 at 7:13 pm Established Mobile Service Providers while switching to 3G technologies have lost their subscribers to New Comers while in transition to 3G. One of the main reasons for this is that the New Comers are providing richer Mobile Content. The whole phenomenon stems from the fact that most service providers and the Content Providers do not have a vibrant revenue sharing model, the fallout is that the Mobile Content Generating Industry has become highly risky the yield does not produce sufficient resources to develop richer content desirable for 3G.
In case the revenue sharing does not get to be more in favor of Content providers Content does not get richer the mobile operators will have no one else but themselves to blame if subscribers slip from their grasp.
The world paid attention when iMode, the wireless Internet service run by Japanese giant NTT DoCoMo outperformed AOL as the largest ISP on Earth, with 35 million subscribers in 2003. It took AOL 15 years to get to 30 million subscribers, while iMode accomplished it in three years.
It put a hem on that mobile was the fastest-growing new content platform in history of communications. But DoCoMo stumbled during the transition to 3G. Second-place rival KDDI draped the momentum with innovative content, acquiring subscribers at a much faster rate.
And third place Vodafone was annihilated in Japan during the 3G migration World Wide Mobile Content Disparity
There is regional disparity in the case of mobile entertainment. The Far East, specifically Japan and Korea, is considered to be the leading region for uptake and acceptance of mobile entertainment. Europe is second in acceptance with Scandinavia, the UK and Italy being the most aggressive markets.
The US, as far as the overall adoption of mobile services goes, trails when it comes to adoption of mobile entertainment services. State of Mobile Content Providers
Market analyst reports are still forecasting multi-billion dollar industries for mobile games, mobile music and other forms of mobile entertainment. The most successful service to date is ring tones.
In spite of the vast revenues being generated by mobile entertainment, insufficient amounts of these revenues flow through to the companies that are providing the content and technology. Operators make money through the use of the network regardless of the content. Content providers are having difficulty calculating the value of the content.
Even in Japan, cited as the leader in delivering mobile content, 20% of the content providers are responsible for generating 80% of the revenue. Hence, most of the content providers are not generating profit and are in danger of halting operations. Current Revenue Sharing Model Mediocre content cannot command separate content fees above the network utilization fees.
There is much discussion about the overall value chain and how revenue should be divided between the industry players.
Most insiders advocate dividing all end-user fees among the value chain participants based on a revenue-sharing model. Despite their publicity, the content providers, the innovative start-up companies that created the industry, lack the influence and killer applications to command a reasonable share.
The telecoms industry has not embraced this revenue-sharing premise, nor does it normally operate with such arrangements. Telecom Operator Mindset.Traditionally, telecoms operators are more accustomed to investing in technology, delivering a service and charging for that service in order to create a return on the investment.
However, the problem lies in the fact that operators are not currently investing. As the major entertainment companies increasingly participate in the mobile space, the issue arises as to whether they will be strong enough to bring about some of the necessary changes. Wireless carriers with insipid marketing.
uphold themselves as reliable telephone services that offer quality telecom nationwide coverage while Content is not a primary focus .
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