Mobile or Internet-based content?

According to Valista' s survey, 60% of respondents believe the revenue share (40% on average) of operators from mobile content is too high. 65% of respondents are believing the level should fall by half within three years. With around 35% to 40% of mobile Internet traffic currently going off-portal, Valista warns mobile operators that if they do not cut their share of the fees, Internet-based media companies would displace them in the market. Many are reluctant to loose control on the market. 60% of respondents believe that within the next three years, less than 25% of total operator revenue will come from mobile content as a consequence. Another view of the survey is that operators can have higher benefit by offering a bigger transaction share to the content providers,while providing a higher quality content to customers and stimulating revenue growth, i.e. DoCoMo in Japan. Another move for operators could be to launch open-access Internet search services. The move should be a direct and offensive answer against Internet-based media companies. In addition, operators have a clear advantage over Internet companies when it comes to billing systems (no need of credit card, direct charging to their monthly phone bill, ..). The future of mobile content should offer good opportunities for growth in coming years, and analysts predict that by 2009 it could account for more than 40% of mobile revenue. Mobile operators should be wise and cautious; alternative solutions are also looking at the market.