Why Belgian media groups should consider buying 4th UMTS licence

By Fabian Tilmant on 1 April 2009 in New (ways of using) Media | Comments Off

Belgian government has decided, more to refill State’s accounts in these downturn times than to stimulate competition, to propose a fourth licence for setting up and commercially exploiting an additional UMTS network in Belgium. VOO and Telenet seem logically interested as 4th major Telecom actors in Belgium (Telenet mostly in North and VOO in South of the kingdom), but I believe that, UMTS being aimed at diffusing multimedia content through wireless network, other actors have a role to play in this game.
First of all because MNO (Mobile Network Operators) have failed until now stimulating mobile data usage in Belgium. Many people blame the lack of device subzidiation in the country, but I believe it is also the failure of enabler’s roll out (such as simple and standard configuration settings, activation plan and marketing propositions for mobile internet/WAP/wireless services) and expensive data plans by mobile operators, as well as bad quality of their 3G/3G+ network that are the real reasons.
I think that media groups, which are mostly private companies in opposition to mobile operators that mostly emerge from historical telecom operators, would be more efficient at providing an optimal experience to the users and efficient and profitable business models to advertisers. Look at Blyk being managed by a media expert in Belgium: Eric Samson.

Media groups exploiting this 4th UMTS licence makes sense considering what happens in the belgian media landscape. Publishers took shares in TV and/or radio initiatives in order to compensate possible loss due to these former new media and other media groups consider publishing, editing, internet, audiovisual… as diversification tracks. So why not go mobile? Owning a mobile network allows first of all, and that’s why all MNO proposed MVNO deals to media groups, to secure cash from communication usage (SMS, Voice). This activity is a great basis, not only to turn mobile media unto an information channel: allowing users to access your content through their device (via SMS, MMS, WAP/Mobile Internet, applications…) but also to follow the Web 2.0 trend which turns an interactive information platform unto a real social network where content and people merge unto a virtual universe. Peer to peer conversations then include brands, people gather to create communities, share (user generated or not) content and thus stimulate mobile data usage.

Of course, looking much further, connectivity will become a commodity for which most people won’t even pay for anymore. Multiple-play offers, shared networks (eg FON), state autorities initiatives for providing free wireless internet in order to reduce digital divide or similar initiatives from private companies in order to bring more people to Internet and then generate more revenues from advertising (Google’s mobile strategy). All this will allow more people being more often, easier and connected at a more affordable price.

To conclude, it is obvious that traditional press, daily or weekly magazines, will need to get rid, at least partly of the printed support in order to provide more interactions, social gatherings around the brand and a balanced mix between brand-generated and user-generated content. And this will undoubtably go through mobile media. What’s important is the brand, not the device to connect to it.

Tags: advertising, Blyk, branded service, Flair Mobile, Google, interest-based advertising, media, MMS, mobile, Press, radio