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Introduction

As part of Ovum's ongoing Telco Services Innovation Radar project, we reviewed 91 announcements of innovative services launched by service providers around the world. This month's most innovative announcement was Russian operator ER-Telecom’s cloud gaming service.

Highlights

  • Cloud gaming (game processing and rendering in data centers rather than on a PC or console) is a recent development for the gaming industry and now a potential VAS revenue opportunity for the service provider industry too.
  • Since they do not own either the hardware device or the gaming platform and content, service providers have found gaming difficult to monetize. But changes in the business model and consumer behavior are likely to help by providing a larger and growing addressable market for bundled gaming subscription services along with core connectivity and pay-TV services.
  • The de-linking of the powerful-but-often-expensive consoles from the gaming experience, and the increasing linkage with connectivity and devices that consumers own already, should enable service providers to capture a larger share of the gaming value chain.

Features and Benefits

  • Highlights a new and innovative service launched by ER-Telecom
  • Summarizes the benefits and drawbacks of cloud gaming by service providers
  • Explains the link to ER-Telecom's FTTH services

Key questions answered

  • What was the innovative service launch of the month as highlighted by Ovum?
  • What makes this service it different and innovative?
  • What are the implications of such a service?
  • What is enabling ER-Telecom to launch such a service?

Table of contents

Ovum view

  • Summary
  • Cloud gaming is a win-win for consumers and manufacturers
  • Netflix disrupted the pay-TV industry; cloud gaming is payback time for service providers
  • Connectivity is now a requirement, increasing wireline broadband speeds – especially upstream – an enabler

Appendix

  • Further reading
  • Author

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