Facing the challenge of content

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01 April 2007

Telcos that insist on entering the content market must recognise their limits, says Sue Norris. Grappling with such challenges is beginning to oppress major operators, while horrifying smaller competitors that may be expected to provide similar services despite having a budget and skills base that's the fraction the size

Michael O'Hara of Microsoft: Disruptive business models can marginalise the role of traditional service providers
If ever the traditional telco had an identity complex, it is now. The mobile threat continues to grow, while the pressure to move into the foreign field of content provision is now substantial, leaving many operators wondering what on earth their future market focus should be.
Should they be working with content studios and piping IPTV services over their networks to secure future customer loyalty and new revenue streams?
Clearly, some players, such as BT in the UK, are frantically trying to cover all bases, for fear of losing even more revenue to aggressive competitors — from entertainment giant Sky at one end of the spectrum, to the myriad of challenger operators, cable companies and internet service providers with competitive internet-based service bundles at the other.

Others are retaining focus and perspective and using strategic partnerships...

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