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There is a clear and growing risk that consumers’ fixation on the products and services provided by the five leading disruptors could leave telcos providing commoditised connectivity and struggling to make a respectable return on their massive investment in network infrastructure and spectrum. Skype’s share of telephony traffic is rising inexorably, but Google and Apple may go to great lengths to prevent a Microsoft asset gaining a dominant position in peer-to-peer communications. By creating a low-cost, yet feature-rich, product, Skype has attracted more than 660 million users and created sufficient strategic value to persuade Microsoft to hand over $8.5bn.

Skype: Like Facebook and Google, Skype sought users first and revenues second.

But Google’s acquisition of Motorola Mobility risks destabilising the Android ecosystem on which a big chunk of its future growth depends.

Google: The search giant’s virtuous circle keeps on spinning to great effect – Google develops scores of free, and often-compelling, Internet services, software platforms and apps, which attract consumers and advertisers, enabling it to create yet more free services.Facebook has the potential to attract 1.4 billion users worldwide, but only if it continues to sidestep rising privacy concerns, consumer fatigue or a sudden shift to a more fashionable service. It took Facebook four years of hard work to reach a tipping point of 100 million users, but the social networking service has been growing easily and rapidly ever since.

Facebook: A compelling example of how to build a business on network effects.But Apple’s strategy depends heavily on it continuing to produce the very best devices on the market, which will be difficult to sustain over the long-term. By combining intuitive and very desirable products, with a highly-standardised platform for software developers, Apple has managed to create an overall customer experience that is significantly better than that offered by more open ecosystems. Apple: Apple has demonstrated that, with enough vision and staying power, an individual company can single-handedly build an entire ecosystem.As the digital economy goes mobile, Amazon’s highly-efficient two-sided commerce platform is enabling it to compete effectively with rivals that control the leading smartphone and tablet platforms – Apple and Google. Amazon: Amazon’s business-to-business Marketplace and Cloud offerings are text-book examples of how to repurpose assets and infrastructure developed to serve consumers to open up new upstream markets.

However, the five have markedly different business models that offer important insights into how to create world-beating companies in the digital economy: This report analyses the strategies behind the success of Amazon, Apple, Facebook, Google and Skype, before going on to consider the key risks they face and how telcos and their partners should deal with these highly-disruptive Internet giants.Īs the global economy increasingly goes digital, these five companies are using the Internet to create global brands with much broader followings than those of the traditional telecoms elite, such as Vodafone, AT&T and Nokia. (Page updated February 2012, report published November 2011, Dealing with Disruption stream) Google Apple Facebook Microsoft Skype Amazon Telco 2.0 Disruptor Report Cover Executive Summary (Extract) It also draws the combined activities of the digital empires - telcos, so called 'OTT players' and others - into the context of the new 'Great Game', the battle for power and value in the emerging digital economy. The report identifies the areas and options for competition and co-operation, and outlines potential strategies for interacting with each player. An extract from our 284 page, 124 chart, strategy report that analyses the business models, markets, objectives, strategies and modus operandi of the major adjacent players, and their current and future impact on the telecoms industry.

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