Wednesday, April 3, 2013

Facebook ‘phone’ to render operators incapacitated - Study



The much anticipated ‘phone launch’ by Facebook come Thursday, April 4, 2013, is expected to transform the social networking company into full communication entity, thereby rendering Mobile Network Operators (MNO) incapacitated.
This is because Facebook would now have the capacity of unveiling voice, Short Messaging Service (SMS) and data.
Industry experts at Strand Consult, observed in a research note made available to DigitalSENSE Business News ahead of the launch that with the estimated 1 billion customers, Facebook will be in for a big time communication enterprise.
Based on the aforementioned, Facebook advertising revenue will soar, especially as the company plans to explore cash flow coming from voice, Short Messaging Service (SMS) and data to name a few.
According to reports by Strand Consult, the new Facebook software would be a skin that sits on top the phone’s operating system, as there would no need to download a Facebook app to the smartphone before usage and all contacts from Facebook would be available in the smartphone instantly.
They noted that if Facebook new concept works, it would become the standard for phones and operating systems.
“Not only are OTT (Over-The-Top Content) companies such as Facebook rendering mobile operators into dumb pipes, but they are making all smartphones into dumb terminals. If all users want is Facebook, then there are few ways that operators and phone manufacturers can differentiate with services or hardware,” the research said.
Facebook announcement, they said, is an important milestone for investors, for it demonstrates that the gold mine for Facebook is not advertising, operating systems or hardware.
“The key for Facebook is to monetize its users for the very communication it offers:  SMS, voice, and data enabled services,” officials of Strand Consult disclosed, maintaining that if Facebook monetize its current offering, it would be bigger and richer than any telecommunications operator in the world.
Further, the research noted pointed out that there is no doubt that Facebook’s over the top (OTT) services have impacted operators negatively, stressing that SMS revenue for operators is all but disappearing as Facebook enabled instant messaging.
Emphasising that voice would also be dis-intermediated as Facebook moves toward Voice over Internet Protocol (VoIP) capabilities.
“The Facebook SIM card is the next step.  We can’t think of one operator that would not want Facebook as an MNVO client,” they submitted.
Remmy Nweke/DSBNews 

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