{"id":79117,"date":"2015-10-02T09:20:05","date_gmt":"2015-10-02T14:20:05","guid":{"rendered":"http:\/\/www.ict-pulse.com\/?p=79117"},"modified":"2017-04-07T19:52:47","modified_gmt":"2017-04-08T00:52:47","slug":"early-thoughts-digicels-decision-block-ads-mobilecellular-phones-network","status":"publish","type":"post","link":"https:\/\/ict-pulse.com\/2015\/10\/early-thoughts-digicels-decision-block-ads-mobilecellular-phones-network\/","title":{"rendered":"Early thoughts: Digicel\u2019s decision to block ads on mobile\/cellular phones on its network"},"content":{"rendered":"

Some early thought on Digicel\u2019s plan to block all ads from the mobile web and in mobile ads on phones connected to its network.<\/em>
\nIn a press release issued this past Wednesday, Caribbean mobile\/cellular carrier, Digicel, announced that it will be rolling out<\/p>\n

\u2026 ad control technology at the network level on its networks across the globe to ensure a better experience for customers and to encourage the likes of Google, Facebook and Yahoo to help connect the 4.2 billion unconnected people across the globe.\u00a0<\/em><\/p>\n

(Source: Digicel<\/a>)<\/p>\n<\/blockquote>\n

Digicel contended that advertisements (ads) on mobile\/cellular phones consume as much as 10% of their customers\u2019 data plans. By blocking the ads customers, it is of the view that customers would have an improved experience. It also expects to benefit directly from the leveraging the control it will wield to secure revenue sharing agreements with major content providers, such as Google, Yahoo and Facebook, which it indicated would be reinvested in its networks.<\/p>\n

Digicel, operates in 31 countries, 24 of which are in the Caribbean, and has around 13 million customers. The ad blocking technology it plans to use, which has been developed by Shine Technologies, an Israeli firm, will by default be active and controlled by the Digicel. The technology will be deployed in Jamaica first, and then rolled out in due course to all of the counties in which Digicel has a presence.<\/p>\n

Although the announcement is just three days old, there have been vociferous discussions globally, with grave concern being expressed across the Caribbean and calls for regulators to intervene. While it may be possible to challenge Digicel on every point of its reasoning, below a few of what are perceived as the \u2018big issues\u2019 are discussed.<\/p>\n

A possible shot in the arm for network operators in the net neutrality debate?<\/h3>\n

In recent years, and with the dominance of the Internet, Digicel, like most mobile\/cellular network operators worldwide, have had to wake up to the fact that they can no longer protect the premium revenues they used to be able to generate from voice services. However, although these providers may appreciate that they must now play in the Internet\/data space, their revenues would be adversely affected, and would need to be supplemented.<\/p>\n

One of the main arguments against network neutrality typically is made by telecoms network operators, is that the services of major content providers (such as the Google, Facebook and Netflix) consume considerable bandwidth, but those providers do not contribute to, or in anyway bear the cost for, maintaining the infrastructure upon which their services are delivered. Hence Digicel ad blocking initiative \u2013 which reportedly is the first globally to be implemented by a network operator, and so is being closely watched \u2013 potentially could give operators control over some of the content that is being carried over their network. More importantly, it could give them bargaining power when engaging content providers, since although the content providers\u2019 service itself might not be blocked, the means by which they generates revenue, through ads, would be under threat.<\/p>\n

Bargaining with large content providers at the expense of the smaller ones<\/h3>\n

Although Digicel hopes to bring the Googles, Yahoos and Facebooks of the world to the negotiating table, the company plans to block all ads both on the mobile web and in mobile apps. It therefore means that the ads placed in all apps on a Digicel customer\u2019s smartphone will be blocked.<\/p>\n

Before we, the app users, jump for joy, do consider the following:<\/p>\n