Mobile providers must diversify – report

According to a recent Ovum report, mobile Internet providers will need to diversify their offerings to remain competitive in the emerging marketplace.

Operators which merely serve as commodity mobile broadband ISPs will find it increasingly hard to stay afloat as their competitors introduce value-added services.

According to an Ovum representative, it would be 'stupid' for providers to continue offering bare-bones packages.

On the other hand, the report states, choosing which value-added content to provide can be a dangerous game.

Ovum recommends that organisations offer communications services, such as applications that assist with managing digital contacts, which could prove popular as social networking sites expand customers' contact lists.

But the report also states that operators often place too much faith in content services such as mobile TV.

While offering free, ad-supported content can draw in customers, the higher costs of maintaining mobile networks leads to more expensive ads, which can deter some 3rd party content providers.

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