Skip to main content

Demand for Video Communication via Mobile Networks

According to the latest market study by ABI Research, video communications and online messaging services over mobile networks were used by fewer than 47 million subscribers at the end of 2011, but will grow to reach 390 million users in 2016.

Mobile network operators once regarded video communication as the likely successor to voice communication and a source of potential new revenue, but their expectations are now more realistic.

Free alternative video chat offerings will always be available, which requires the service providers to offer substantive value-added offerings that are likely to generate revenue. That said, challenges remain in the marketplace.

"Only a small minority of consumers are willing to pay a premium price for video calls," says senior analyst Aapo Markkanen at ABI Research.

Video services will be monetized by their bundling with other communication media, promoting premium features to enterprises, and/or delivering advertisements.

But could operators seek an edge by offering a better system than the free over-the-top players? Markkanen is skeptical, pointing to the evidence from voice and text messaging services.

"Traditional mobile services didn't evolve in a practical sense with the operators in the driver seat. I seriously doubt they can reinvent video communication services," he said.

Perhaps the most serious dilemma for the mobile service providers is the lack of interoperability between the separate video ecosystems. Allowing the different ecosystems such as Tango, fring, and Apple's FaceTime -- as well as all the carrier services -- to seamlessly interconnect with each other is a big challenge.

However, if video chat service interoperability can be addressed effectively, then the large-scale adoption of mobile video applications could be closer than expected.

These findings are from ABI's study of services that are provided to consumers either by mobile network operators or by over-the-top (OTT) service providers. Their report covers video telephony, video messaging, and video sharing, as well as Video-on-Demand consumption.

Popular posts from this blog

Worldwide Contactless Payments will Exceed $1 Trillion

There's a huge upside opportunity for digital payment innovation in America. As of December 2017, Juniper Research estimates that only 9 percent of the total payment cards in circulation within the U.S. market was contactless-enabled -- this translates into just over 100 million cards. While this is a significant installed base -- around 13 percent of total chip cards issued in the U.S. market -- Juniper estimates that only 5.5 percent of the cards were actually used to make contactless offline point-of-sale purchases in 2017. This translates into about 6 million contactless cards used for payments. That's relatively low in comparison with more advanced markets such as Canada (60 million) and the UK (108 million). Contactless Payment Market Development Juniper Research forecasts that driven by payment cards and mobile wallets, in-store contactless payments will reach $2 trillion by 2020 -- that represents 15 percent of the total point of sale transactions. Furthermore

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente