Rise of the Alternative Network Provider
ID: #45950
Listed In : Packing
Business Description
Incumbent telecom operators in the U.S. face a new category of competitors that play by a different set of rules. These alternative network providers aim to disrupt the traditional telecom business model by lowering access costs and improving the user experience. Their motivations differ from incumbent telcos, which focus on monetizing their connectivity solutions. Rather, these alternative network providers view access as a sunk cost necessary to drive their other initiatives, such as digital advertising and e-commerce. The stakes are high because these market dynamics will shift the balance of power, money, and landscape makeup in coming years. Only the strongest and most nimble incumbent operators will survive the coming shakeout. There are three emerging segments of the alternative network provider space: Wi-Fi, cloud, and advertising. Each of these areas is driving increased interest by nontelecom companies in pursing telecom endeavors. Wi-Fi is viable alternative to cellular Wi-Fi is becoming a viable alternative to traditional cellular service, not only offering data, but also voice and text services. The prevalence of hotspots, in residential and commercial buildings as well as in public venues, is making Wi-Fi coverage nearly ubiquitous across large swaths of urban and suburban areas. A new breed of operator is emerging to capitalize on Wi-Fi, including cable operators, startups such as Republic Wireless and Internet companies such as Google. Wi-Fi operators pose a significant challenge to incumbent telecom operators because Wi-Fi is relatively low cost to use and the quality of service has been greatly enhanced due to innovations in handover technology and seamless authentication. In many cases, Wi-Fi is being offered for free, with the cost being subsidized by new business models, such as analytics and advertising, which is why this is so disruptive to telcos. For more details : Animated Startup Marketing Video