Operator opportunities in the converging Gaming and Telco markets

It lies in the nature of games that they’re more fun when played with others and ever since the first correspondence chess match conveyed by telegraph in 1845 (Howard Staunton vs. Henry Thomas Buckle – Remis after 8h) Telco operators have played a certain role in bringing gamers together.  

In recent years the expansion of fixed and mobile broadband Internet has significantly influenced the video game industry and increased the reliance on core Telco services. Telcos can profit from this development by supporting current trends in the gaming market:

Multi-Player Network Games: While both PC and gaming console games used to be designed for single players or multiple players at the same location, a large proportion of today’s games are played over the Internet. MMPORG (Massive Multiplayer Online Role-playing Games) such as World of Warcraft or Dark Orbit have millions of users with thousands competing against each other simultaneously. In Online Gamers Telco Operators find a consumer segment with a natural interest in high bandwidth / high QoS broadband connections. Telcos could address this segment through dedicated bundling offers e.g. combined 24 month subscription of broadband + access to preferred online game or through loyalty schemes such as In-game currency as a redemption option for Telco loyalty points.

Mobile Games: At an average growth rate of 46% p.a. over the last five years, mobile gaming has become a market with a worldwide value in access of EUR 3 bn.[3] While ten years ago mobile gaming was mostly limited to preinstalled casual games, the overall increasing performance of handsets and networks has altered the perception of mobile phones as gaming devices. A broad variety of games is available for download with multi-player games already holding a 15% share of revenues.[4] With “Shadow of Legend” the first MMPORG has been launched which can be played on a PC as well as on a mobile phone – fixed mobile convergence has become a reality in the gaming market. Mobile Operating System compatibility with Cross-Platform In-Games could create an important USP for Operator branded phones.  Bundling offers as proposed for the fixed network market could also become relevant for the mobile gaming market.

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