It is not a new phenomenon to hear ‘Content is King’; but what is valuable content and what is not, especially when it comes to mobile advertisements has been a problem that till now does not seem to have been solved.
However, we now seem to have Facebook to the rescue. In a recent article here, Facebook, which already is scanning almost everything a user does, is taking location based services to a seemingly new level. The efficient use of the capabilities would serve the purpose of Facebook generating more revenues for itself from advertisements which would potentially help customers pick that what is most ‘wanted’ instead of irrelevant and random adds. But….. I have another question: what is it for the telecom operators who would be providing the quintessential backbone for the delivery of the content??
The focus of the operators remain in increasing ARPUs for the delivery of data services with newer business models, charging models and other revenue streams; but the quintessential question that still remains is: are the data revenues growing fast enough to compensate for, or provide break-even for the costs incurred at the network level? The explosion of data traffic is bound to create traffic issues and therefore needs more investment in the OSS part of the business; but can this model scale in the long run for a sustainable business?