Many around the world will use Apple as a benchmark of how to successfully engage the digitally native consumer, though it’s the development of the iStore ecosystem which can be used as a model for the telcos.
Speaking at Light Reading’s Software Defined Operations and the Autonomous Network event in London, Atul Purohit from Vodafone Group pointed towards the slow-burning and long-term investments made in creating the app store as the way to make money in the digital economy. This is ultimately one question which will frustrate a lot of telcos, how will the vast expenses on 5G be recaptured over the next decade?
With 5G, MEC and IoT trends starting to make more concrete impacts on the real world, Purohit suggested a platform model should be built these technologies, with the telcos forming the centre of the ecosystem. This is not the blockbuster cash generator, a silver bullet to recoup lost billions, which some investors might want, but it is a sensible, sustainable business model. In fact, you can already see the benefits today.
Apple’s iStore and Google’s Play Store are excellent examples of careful development of an ecosystem and the rewards which can be realised when a segment matures, but the smart home is another. Most would have presumed the telco would be an excellent focal point for the smart home ecosystem, primarily because the router is already an accepted fixture in the living room, though the likes of Amazon and Google has imposed the smart speaker in its place.
This is an example of inaction than anything else, as the proactive internet giants wrestled the focus of the smart home away from the router and the cumbersome telcos, and onto the speaker. Services and products are being built around the smart speaker, and the financial rewards will be claimed by Amazon and Google. With personalised experienced and IoT trends of tomorrow, the telco still has an opportunity to stake its claim to be the focal point of these ecosystems.
This is a business model which will mature over time, requiring long-term investment and patience above all else, though it is a model proven successful time after time.