Seattle, WA – December 13, 2016 – Syntonic, a mobile platform and services provider, today unveiled its 2017 mobile predictions. These predictions recognize the changing content consumption habits in emerging markets where consumers have bypassed TV and computers for mobile devices, and in the U.S. where millennials and others seek alternatives from the restrictions imposed by today’s mobile data plans. In parallel, there is mounting financial pressure on mobile operators to grow their flat-lined average revenue per user (ARPU) with competitive, higher margin offerings. As a result of these challenges, mobile operators are responding on a global scale with content-centric strategies. In 2017, Syntonic predicts the industry will see more deployments of content-oriented business models, such as sponsored data, ad-supported, and subscription content services. This fundamental transformation will require alliances between mobile operators and major content providers.
In the enterprise, BYOD programs will continue to gain momentum, as companies encourage and look for ways to keep employees connected. Companies will pursue cost efficiencies with their BYOD programs while mobile operators will seek to enhance their enterprise revenue streams.
“This year we witnessed a global sea-change in how consumers access content at home and on the go. In response, mobile carriers are upping their game by rolling out new access models that accommodate this shift in consumption, such as T-Mobile’s Binge On, AT&T’s DirecTV Now and Verizon’s go90,” said Gary Greenbaum, CEO and Co-Founder of Syntonic. “In the next year, we anticipate more mobile carriers to adopt the dual roles of content provider and wireless network operator. The year 2017 will be an evolutionary landmark in the mobile industry, fueled by the explosive worldwide growth of mobile content services.”
Syntonic predicts the following shifts during 2017:
- Sponsored data will transition from early adoption to mainstream deployment with mobile operators worldwide. AT&T, Verizon, and T-Mobile have all rolled out free data services to U.S. customers, and mobile operators in Latin America, Africa, and Asia also explored sponsored data models. While sponsored data is now mainstream in the U.S., Syntonic expects more mobile carriers around the globe will partner with content providers to capture the enormous untapped prepaid market of nearly 2 billion mobile subscribers.
- A wave of ad-supported mobile video services will come to market. Mobile video consumption is growing at a fervent pace. With this growing wave of data use, alternative content-centric business models will arise to bolster the economics of video delivery. The year 2017 will be notable for the exploration of ad-supported mobile video services, including everything from user-generated content to premium entertainment and short-form music videos.
- Over-the-Top (OTT) mobile content services will emerge as cable operators and major content providers begin offering programming content directly to mobile consumers across carrier networks. The 2000’s were the failed decade of large content brands venturing into mobile as Mobile Virtual Network Operators (MVNOs). The cost of device hardware, customer acquisition, operations, and support far outweighed the value garnered from their premium content. Moreover, the lock cable operators had on big screen programming started to erode with the rise of Internet Protocol, user generated content, and ubiquitous mobile access. Leveraging existing mobile carrier sponsored data platforms, content providers and cable providers can now offer their content and programming directly to the end user’s smartphone, irrespective of the mobile network.
- In 2017, we will witness the accelerated alliance between content companies and mobile carriers: Verizon will merge with Comcast; AT&T will receive approval to acquire Time Warner; and other carrier-content company mergers and alliances will follow in Europe. Consumers have made their needs abundantly clear – they can’t get enough video content on their terms, when and where they want it. Now, the onus is on mobile carriers to accommodate this new consumer expectation. AT&T’s acquisition of DirecTV and its planned acquisition of Time Warner for more than US$85 billion is just the beginning. In 2017, Syntonic expects more unions will occur as Verizon formally merges with Comcast, extending the NBC Universal assets onto mobile. The mergers will continue across the Atlantic with major European carriers like Vodafone, O2, and Orange acquiring popular content companies in their respective markets.
- More than 80% of businesses in the US will support a BYOD program. Currently, only about 60% of companies acknowledge having a formal BYOD policy. Syntonic predicts more companies will implement policies as BYOD adoption hits a critical mass. Reimbursement will be the catalyst for establishing a formal policy, as more employees demand compensation for personal data usage.
Syntonic (SYT.ASX) is a consumer and enterprise mobile platform services company that is transforming the mobile Internet with modern business and usage models that are appropriate for application-centric smartphones. Syntonic’s Connected Services Platform™ supports both consumer sponsored content solutions and split-billing for corporate Bring-Your-Own Device (BYOD) deployments. Founded in 2013, Syntonic has developed worldwide strategic partnerships with leaders in the mobile ecosystem. To learn more about Syntonic visit www.syntonic.com.
Barokas Public Relations