Tuesday, February 28, 2006

Mobile Mega Trends

Unstrung works with Strand Consult to identify and analyze "10 Mega-trends in the mobile industry, that are so comprehensive that they will without a doubt permanently change the mobile industry." Here are the Mega-trends in random order:

  1. The threat and possibilities of the Discount Mobile Service Providers,
  2. Falling profit margins on basic mobile services (voice, SMS) as a result of competition,
  3. The use of outsourcing - to minimize OPEX,
  4. Controlled investment in infrastructure - to reduce CAPEX,
  5. The use of micro-segmentation (Mobile operators will use sub-brands and producers of mobile terminals will introduce a wide range of different terminal models),
  6. Higher marketing expenses – partly because of the use of micro-segmentation,
  7. Stock Rotation Risk – the result of the terminal producers larger product portfolio,
  8. New business models in the mobile value chain – the existing business models are an impediment on economic growth,
  9. A more complex value chain – a growing number of different players seek the place in the mobile value chain,
  10. Mobile penetration vs. SIM-penetration – there is an important difference.
According to the article and a recent Strand Consult report on the very topic, "there is absolutely no doubt that all the market players in the value chain, due to these 10 Mega-trends, will be forced to totally re-evaluate and adapt their business if they want to remain in business in the future." It aslo writes that "The 10 Mega-trends will of course not just be a threat for the mobile players - these new tendencies will also open considerable possibilities. However it is extremely important to emphasise that these new business models will not establish and materialise by themselves ...To realise the revenue potential requires that the players take the correct initiatives to create the market themselves. Most players will have to redefine their own roles in the value chain and especially redefine the way that they co-operate with the other market players. "