New Opportunities in Online Content Distribution

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As part of our new 'Broadband End-Games' report, we've been defining in detail the opportunities for telcos to distribute 3rd party content and digital goods in new ways.

Telecoms operators have traditionally retailed their services to consumers, businesses, not-for-profit and public sector organisations. Carriers have also resold services to other operators as wholesale services (including regulated services such as interconnection).

At the Telco 2.0 initiative, we have long argued that there is an opportunity for telecoms operators to develop a new "2-sided" revenue stream, broadly divided into B2B VAS platform revenues and Distribution revenues. These services enable third party organisations in multiple vertical sectors to become much more effective and efficient in their everyday interactions and business processes. We have valued the potential to Telco's' at 20% of additional growth on core revenues in ten years' time.... if they take-up the opportunity.

Figure 1: 2-sided business model framework

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There's more on our definitions of the Distribution Opportunities here.