tyntec Forecasts Top Mobile and Telco Predictions for 2013
SAN FRANCISCO, CA, Dec 12, 2012 (MARKETWIRE via COMTEX) --
tyntec, a mobile interaction specialist, today announced its top six
predictions for the global telecom industry in 2013. tyntec's
co-founder and CTO Thorsten Trapp, a ten year industry veteran,
expects the telecom industry to be challenged in the coming year as
operators learn to adapt to the rapidly changing mobile landscape.
With the emergence of free or low cost messaging services and OTT
players, mobile operators have been forced to innovate, rather than
rely on traditional voice and SMS services. As revenues are
continually threatened, carriers will reevaluate their business
models and search for new revenue generating markets and
partnerships. As a result of this innovation, 2013 will prove to be a
favorable year for mobile users. Consumers will experience lower
prices and new applications as operators and internet companies
compete for market share.
"2012 was the year of mobile -- big brands and internet companies
have just started to realize the potential impact that mobile
communications can have on their engagement with consumers," said
Thorsten Trapp, Co-Founder and CTO of tyntec. "We expect the mobile
trend will continue in 2013, with SMS being the most rapidly changing
application. Competition between operators and Internet companies
will cause these two distinct worlds to work together in different
tyntec's 2013 predictions for the telco industry include:
We will witness a rebirth of SMS.
In times of crisis or low network connectivity, SMS remains the go-to
communication mechanism. In the aftermath of hurricane Sandy,
residents in New England lost power for days, making the task of
voting in the Presidential election a difficult undertaking. To help
voters find the nearest polling station, Google set up a custom
instance of an SMS-based locator for voters. When disaster strikes,
SMS has a major advantage over voice, OTT services and email. This
time next year, rather than focusing on "the death of SMS," we'll be
discussing "the rebirth of SMS" thanks to its proven reliability and
interoperability in times of crisis.
Google and Facebook will take over the world with SMS.
Picking up where they left off in 2012, the world's two biggest
Internet players will demonstrate the power of SMS as they spread
connectivity into developing countries. With the successful launch of
Google Gmail SMS in Ghana, Nigeria and Kenya, users can manage their
email via text message by activating a simple setting on their Gmail
account. Google+ SMS also allows users to update their status via
Similarly, Facebook is using SMS to extend their reach into
developing countries. For example, "only" 5 percent of the population
in Africa and 7 percent in Asia have access to Facebook. Meanwhile,
Facebook maintains 45 percent market share in North America and 30
percent in Europe. With the mounting pressure from shareholders,
these developing markets present a huge opportunity for the social
giant to expand its footprint even further.
LTE will drive down the price of devices and access: a winning
combination for consumers.
Today, consumers must look no further than their local Best Buy or
Apple store to purchase an iPhone or SIM-free smartphone and obtain
the data and access separately. LTE will only compound this trend, as
mobile operators will increasingly be regarded as a data pipe.
Consumers will continue to experience savings and access to new
applications whilst operators will compete with each other on price,
speed and better coverage. In 2013, we expect to see four distinct
shifts with mobile operators:
-- Device sales will drop and margins on existing devices will narrow.
-- Operators will try to compensate for lower device sales by attracting
users with "access" to their network.
-- To prevent further revenue loss, operators will focus on fostering
existing billing relationships with customers.
-- Operators will be forced to "go all in" and invest heavily in LTE,
weeding out smaller carriers and positioning larger operators with
deeper pockets on top.
RCS-e will fail.
The goal of the GSMA's RCS-e standard aims to help operators offer
OTT services such as Instant Messaging, chat, video sharing and file
transfer using their existing networks. However, there are four key
hurdles that we believe will prevent the initiative from succeeding:
-- Late to Market: RCS-e will be hard pressed to compete with services
already being used by existing standards and platforms.
-- Little to No Differentiation: While the likes of WhatsApp and Viber
have already developed their services, it will be an uphill battle for
RCS-e-based services such as Joyn to match what is out there already.
There is no compelling argument to switch.
-- Lack of interoperability: RCS-e requires compatible handsets and
network infrastructure. As neither of these are widespread, RCS-e will
not work on an international scale for some time, it will be less
attractive than the existing OTT offerings.
-- Operator-Dependent Business Model: RCS-e is competing against what are
now OTT brand names, which offer their service for free or a minimal
charge. The dependence on operators to create RCS-e interoperability
is a huge hurdle, and will likely make it economically unattractive
for subscribers before services have even launched.
Cross-industry Alliances Between Web 2.0 Companies and Carriers will be
on the Rise.
The lure of mobile for new media companies and vice versa will lead
to a massive increase in partnerships with carriers. We have already
witnessed a number of deals that indicate that this trend is already
underway. Verizon now offers Skype mobile VoIP service for 3G
smartphone customers while also offering mobile with video on its 4G
LTE Mobile Broadband network. Messaging giant WhatsApp has also
partnered with 3 Hong Kong for the provision of a WhatsApp-branded
mobile data plan and roaming package. In addition, WhatsApp has
struck another deal with Indian Operator, Reliance Communications to
bring WhatsApp to college kids for free as part of its MyCollegePlan.
Driven by the prospect of the "next big revenue-generator" in the
form of mobile services and mobile advertising, in 2013 we will see
many more alliances being forged across industries and through the
carrier value chain.
Network Instability will continue Despite the Promise of 4G.
Consumers have an insatiable appetite for newer, faster and more
reliable access to technology. But the cost of shorter technology
lifecycles is usually network instability. Shorter lifecycles mean
less time to recoup the operators' investment, which means less
testing and lower quality. All of which point to worsening service
for consumers; a true dichotomy of supply and demand. While 2G
maintained its rank as the industry standard for over a decade, 3G
came and went and has already reached the end of its lifecycle in
half the time. Furthermore, the sheer volume of Internet-ready
devices is contributing to the demise of the wireless data spectrum.
As a result, smartphone users can expect to experience slower service
and dropped connections.
tyntec is a mobile interaction specialist, enabling businesses to
integrate mobile services for a wide range of uses -- from
mission-critical applications to internet services. We reduce the
complexity involved in accessing the closed and complex telecoms
world by providing a high quality, easy-to-integrate and global
offering using universal services such as SMS, voice and numbers. Our
products serve a broad range of business requirements are all backed
up by an advanced and reliable infrastructure. Founded in 2002, and
with more than 150 staff in five offices around the globe, tyntec
works with 500+ businesses including mobile service providers,
enterprises and internet companies. tyntec is a global mobile
interaction service provider, offering high-quality mobile messaging
and information services to mobile network operators, enterprises,
mobile service providers and internet companies.
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