Operators Must Seize Key Vertical Market Opportunities

Next Generation Communications Blog

Operators Must Seize Key Vertical Market Opportunities

By Susan Campbell

As a service provider, you have endured a number of changes in the recent past. You no longer can survive by simply offering voice and messaging services and consumers want so much more. You have likely had to change your business model and align yourself with key partners in order to identify opportunities and leverage your assets in order to change directions in your strategy.

Within that new strategy is the need to align yourself with proven players so you can better address the opportunities within key vertical markets. One provider who is helping service providers across the globe to re-define their strategies and position themselves for sustainable revenue generation is Alcatel-Lucent.

This key provider is enabling service providers like you to identify those key vertical markets and leverage opportunities. The best way to do so is to move into the application space or attract others into that space on your network. In working with key developers, you can realize the true value of your network and become more relevant for your customers.

The good news for you is that the market today offers a full range of new value-chain players who are bringing new applications to end users across wireline and wireless networks. The challenge, however, is that there is no additional revenue opportunity beyond user fees for the delivery of third-party applications when they don’t utilize your network capabilities.

If you continue to rely solely on your traditional access business model for revenue growth, you are risking loss of relevancy, commoditization and increased churn. The reality today is that there are significant opportunities in verticals such as social media. If you do not have the development team on site to capitalize on the opportunities in this space, it is time to work with Alcatel-Lucent to develop a strong business model that will attract developers who can bring you into this vertical.

Just how big is the opportunity when the right vertical for you is identified? According to Alcatel-Lucent research, 71 percent of network providers launch less than 5 applications per month. And, those who do launch more rely on a developer platform or a third party hosted app store. In other words – a significant majority of network providers are missing the immense revenue opportunities in developing apps for vertical markets.

As a service provider and network operator, you are in the perfect position to drive revenue in key markets. Why? Alcatel-Lucent research found that 75 percent of app developers are willing to pay for subscriber preferences and location information – information you own and subscribers are willing to give you permission to share. Failing to leverage this information and opportunity is ensuring you are missing substantial revenue opportunities that can guarantee your long-term success.


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