What are the key challenges that an operator faces in adopting the two-sided business model?
The first is psychological – committing to change. The old model has been very successful for a very long time. Then, there are many operational challenges. Existing BSS systems generally aren’t set up for “white label” or wholesale operations. The data is often fragmented, and there may be no means of tracking metadata such as “the user has given permission for us to use this for purpose X”. The platform can generate huge volumes of transactions. Consider how much more infrastructure an ISP needs to select the right ad to show each user on every web page based on their browsing history and demographics. There is also an organizational challenge, both internal and external. Internally there is a poor alignment between current structures and rewards, and those needed to support a ‘platform’ type of business. Externally there is a need for greater collaboration both within the telecoms industry, as well as between industries.
