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Mobile coverage and content accessibility 10 Disruptive Business Models

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Mobile coverage and content accessibility used to be completely separate markets. With the rise of wide bandwidth
distribution networks and 4G-ready mobile devices, telecommunication providers are more and more disrupting cable
companies. By creating nationwide crowdsourced WiFi-networks, cable companies are striking back. Tablets and
smartphones have become the center of user experience and total solutions for on-demand or location-based content are
the way forward. Because cable companies and telecommunication providers are the gateways to any content distributed
over the internet, from voice to video, they gain enormous insights into behavioral patterns. These insights are a value
proposition in itself, only restricted by privacy legislation. Distribution will become a commodity and consumers will be
less and less willing to pay a premium price. In a nutshell, this means that revenues from large volume contracts and
premium content will decrease while on-demand and location-based revenues will increase. The ability to deliver true
customer service will be an incredible differentiator for cable companies and telecommunication providers.
Telecommunication providers, fueled by the rise of wide bandwith distribution
networks and 4G-ready mobile devices, are disrupting cable companies.
Established network providers will have difficulties dealing with the disruption in their markets. Traditional fixed contracts
are competing with freemium alternatives that operate on a global scale. Content subscriptions are moving away from the
television screen towards mobile screens. Content is already recorded, edited, produced and distributed digitally. Media
producers and broadcasters are able to cut out the middle man, just as media users are able to cut the cord. Cable
companies are responding by developing apps for live and on-demand content consumption. Telecommunication
providers are responding by investing in even faster data networks. This upwards move towards higher quality
propositions is a characteristic of established market leaders dealing with disruption. New market entrants start at the
lower end and slowly move up-market. Consumers looking for a fair price for coverage and access to content have a
much bigger choice against lower prices.
Disruptive
Cable & Telco
Model

Published in: Business, Technology
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