Exclusive Speaker Interview with Daniele Tricarico, Telecoms Analyst, Pyramid Research

Daniele Tricarico_hiResIn the lead up to the Digital Services World Congress we spoke to several industry experts, who will also speak at the event. Please read below the interview with Daniele Tricarico, Telecoms Analyst, Pyramid Research

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What is your main objective in participating in the dedicated messaging event?

At Pyramid we help mobile operators identifying growth opportunities to sustain revenue growth.  My objective in attending this event is to continue our conversation with all other players in the messaging ecosystem to understand how operators can protect messaging revenue, and remain relevant in this business, while they identify new monetization streams from data services and from OTTs.

Do you think operators still have a central role to play in the messaging market?

Messaging has always been a cash cow for operators, but in the past four to five years OTT players have been able to take a big chunk of that business, especially in developed markets. Now, as smartphone penetration is increasing globally, even emerging market operators are under pressure as mobile customers switch to messaging apps. Even faced with this challenging scenario, operators still can and should play a key role in the messaging market. To remain relevant operators should pursue multiple paths. In our experience the most successful operators are those that are able to protect their core messaging business, for example by leveraging integrated tariffs, while at the same time they innovate their services by partnering with OTTs. 

How do you think operators and OTT players and services should co-exist?

There is a flaw in my view in the whole debate about coexistence and coopetition as it is often said. The opportunity is not about finding ways to coexist. Operators and OTTs already do that and  the current situation is not necessarily benefiting anyone. On the one side operators are losing revenue, and on the other most OTTs are in need of viable business models. The opportunity is rather about finding ways to work together in a way that benefits all parties, and to leverage whoever assets to respond to the demand for richer communication of digital consumers and enterprises. As digital companies, OTTs are best placed to innovate services, while operators can bring to the relationship not only their networks but also their relationship and knowledge of the customer as natural big data companies. 

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