Advertising revenues becoming more important for MNOs

MNOs such as Vodafone and T-Mobile are moving aggressively into the mobile marketing space in order to generate new forms of revenues and to compensate for lost voice and SMS business. Now, Virgin Mobile in the US is going down a very innovative path in the mobile world: “subsidized ad calling”.

Takeaway: Subsidizing calls on a fixed line was a model which was introduced in 1999 and 2000 by a few start-ups here in Europe, an approach which miserably failed at that time. As cell phone calls are getting cheaper and cheaper (in the US there are first “phone as much as you want” packages available; in Austria free of charge calls within the same network, etc.), advertising models might only attract a very distinct (young people?), (probably small) target group. However, it remains an interesting pilot case…

Recommendation: MNOs are feeling the pressure and are moving into new fields of activities. The voice business has been deteriorating over the last years. Now, new start-ups are threatening other, still profitable products and businesses such as SMS or IM. There are many interesting ideas out there…. and interest from the VC community is growing steadily…

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Explore posts in the same categories: Software, Venture Capital

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