Have you ever wondered why Facebook paid $19 billion to buy WhatsApp ? What value Microsoft saw in the $8.5 billion take-over of Skype ? Why Google continuously launches new service propositions in markets that seem so far away from its core business? And why the European Commission thinks (rightly or wrongly) this practice is in the case of Android anti-competitive ? In this overview article we will explain the mechanics of digital business models and how companies use them to cross user segments and industry borders to create unfair business advantage.
Originally published on May 24, 2016. Go to the full article at http://neoschronos.com/insights/deciphering-digital-business-models/
At this year’s Mobile World Congress Tele2’s CEO Mats Granryd announced his company’s move to all-data, bucket mobile plans for its consumers. Under this model Tele2 will give away all of the voice minutes and text messages consumers use and charge only for data. Tele2 has already started implementing the new plans in some of the countries it operates “gearing the company up to be solely dependent on data”. In other words, establishing data as a core business for Tele2.
The strategic and business case considerations behind this move can seem dazzling. For a long time, and still today, many mobile operators have regarded the introduction of all-data mobile plans as the acknowledgment of being a bit-pipe. The latter comes with the associated fear of extinction of the high-profitability revenue sources: voice minutes and texts.
This article discusses the impact of data to the profitability of voice and messaging and suggests growth opportunities for operators adopting data as a core business. The analysis shows that a proactive approach is recommended.
Originally published on March 19, 2014. Go to the full article at http://neoschronos.com/insights/the-opportunity-behind-data-as-a-core-business/