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"Get the content quandary right and win market share in Telecoms Industry", asserts Atos Consulting


Let battle commence: content wars to define the telecoms industry of 2007

Paris/London, 16 November 2006 - Two new white papers, released by Atos Consulting, the business consulting arm of Atos Origin, predict that battle for telecoms supremacy in 2007 will be fought and won by those market players who can offer mobile customers what they really want – a choice of compelling content at a competitive price.

In a presentation given to industry watchers today, author of newly published MVNO Gold Rush – Sustainable businesses or the next telecoms collapse?, Jonathan Smith and Andrew Ferguson, author of The Breach of the Walled Garden - Growth of Off-Portal Browsing, outlined that next year’s market evolution will be defined by a scramble to develop and provide inventive services and content to satisfy an increasing public appetite for smarter and better mobile services.

Says Jonathan Smith, Principal Consultant at Atos Consulting: “Despite recent obituaries, the MVNO business model is not dead – there are still opportunities in many countries, including in Europe. However, it does look like the ‘gold rush’ is over. Aspiring MVNOs need to carefully tailor their offers to specific market conditions and to provide clear differentiation. Without this and a good brand or distribution they’ll just add to the growing list of MVNO casualties.”

Andrew Ferguson, Principal Consultant at Atos Consulting continues: “With that in mind, it’s no surprise that what’s pushing the development of the MVNO market is huge demand from the customer and unwillingness, on the customer’s part to simply accept what the traditional players have to offer. What we can show is how customer demand really has become the catalyst for huge innovation in the marketplace but that, crucially, simply offering something is no longer enough – listen to the customer and give them choice and you will win their loyalty.”

MVNO Gold Rush - Sustainable businesses or the next telecoms collapse? and The Breach of the Walled Garden - Growth of Off-Portal Browsing offers telecoms players its views on what it will take to succeed in the battle to win the hearts and minds of the content-conscious customer.

MVNO Gold Rush – Sustainable businesses or the next telecoms collapse?
written by Principal Consultant, Jonathan Smith, argues that:

* Without a clearly differentiated service proposition (or strong brand and distribution channel, the no-frills model is not sustainable in the long term
* There are still good opportunities for different types of MVNOs in selected European countries but market entry strategies need to be tailored to different countries
* Whilst the content-based MVNO approach will, ultimately, be viable, there are still significant barriers to consumer adoption of mobile content that, in the short term, will require such players to offer attractively priced voice and SMS and to shoulder increasing losses before consumer behaviour changes
* 3G networks will provide a positive impetus to the MVNO model and expand the type of businesses that will be able to enter the market.

The Breach of the Walled Garden - Growth of Off-Portal Browsing
Written by Pinal Gandhi and Principal Consultant, Andrew Ferguson, explores:

* How and why the acceleration in user demand for off-portal browsing through mobile devices is creating a while new order in the mobile communications arena
* The issues and challenges, the opportunities and threats for each of the key player within the digital content market
* The strategies and mechanisms we believe each needs to adopt in order to sustain a profitable position in the fast-changing environment.

Atos Origin’s turnover in the telecoms industry is close to €1 billion. It delivers consulting (through Atos Consulting), systems integration and outsourcing expertise to 350 customers around the world, including major telecom operators in Europe such as France Telecom, KPN, Telecom Italia and Vodafone. Atos Origin has been active in the telecoms market for more than 20 years.

About Atos Origin
Atos Origin is an international information technology services company. Its business is turning client vision into results through the application of consulting, systems integration and managed operations. The company’s annual revenues are more than EUR 5.5 billion and it employs over 47,000 people in 40 countries. Atos Origin is the Worldwide Information Technology Partner for the Olympic Games and has a client base of international blue-chip companies across all sectors . Atos Origin is quoted on the Paris Eurolist Market and trades as Atos Origin, AtosEuronext Market Solutions, Atos Worldline and Atos Consulting.

About Atos Consulting
Atos Consulting, the global consulting practice of Atos Origin, is a leading provider of business, process and technology consulting services. With more than 2,500 staff globally, it focuses on delivering proven, pragmatic solutions to the telecom, manufacturing, financial services and public sectors.


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