Orange to Launch Mobile Only Bank in 2017

Orange is moving to launch a mobile-first bank in 2017. People have been harping on about Digital Convergence for ages now. But this is a great example of what it actually means for the end customer. New firms, leveraging their existing technology capability, to launch new services in an adjacent market sector that is not innovating fast enough. A few years ago it would have seemed strange that the company currently offering you a phone contract would potentially replace your bank. But somehow it doesn’t seem that out of place … 

 

The Future of Telco: Internet in the Sky!

Telco companies around the world are battling to drive average revenue per user. So forward thinking CEO’s are moving to try and participate in Over The Top (OTT) services. But that may not be enough.
Given how many people own mobile phones, it might seem surprising at first that Telco companies the world around are under pressure to grow revenues. Companies in emerging markets like Beeline, Wind, Kyivstar, Mobilink, Telecom have been suffering with year-on-year declining Average Revenue per User (ARPU) figures for the last 5 years. This is not much better in developed markets. The key challenge across all operators is the costs of licensing spectrum, maintaining physical network infrastructure on the ground, and the declining margins on data sales due to global competition. Match this with massively growing smartphone adoption across the globe, where all services are moved to data channels… and you’ve got a race to the bottom. All the telco’s are offering narrowly differentiated services and competing on… price. Not a good place to be.

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