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Operators to benefit most from content services

LONDON-Mobile operators are positioned to beat other content providers at their own game, according to new research from Ovum.

The research firm suggests mobile operators will generate more revenue from content than all other players combined by the end of 2005, with revenue produced by operators to reach $22.3 billion vs. $15.5 billion earned by non-operators. In 2002, operators accounted for $6.1 billion of content revenues, and other players made $4 billion.

“Operators have, until very recently, approached premium content with a mixture of caution, confusion and complacency,” said Eden Zoller, research director at Ovum. “This meant they missed the boat with the first wave of content, notably ring tones and adult entertainment.”

However, Zoller added that carriers are now making efforts to drive premium content, noting initiatives like Vodafone Live!, O2 Active and T-Zones. “If they keep up the momentum and continue to create user-friendly services, they will remain the dominant player,” Zoller said.

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