Millicom plans to go from being a mobile operator to a digital services company in 3-5 years in some African countries
Millicom offers its services throughout major markets in African and Latin America primarily under the Tigo brand. Millicom, like many other operators is shifting its focus from chasing traditional telecom revenue (voice & SMS) to more lucrative “Digital Services”. These Digital Services are typically cloud-based services and can be divided into two distinct offerings.
- Digital Lifestyle Services – catering for individual subscriber’s personal need and wants. Offerings are typically services such as – music, video, personal security, data storage, health, and others
- Digital Enterprise Services – catering for businesses, SMEs up to large enterprises. Offerings here are focused on corporate needs such as cloud applications, hosting, security, unified comms, storage and backup.
Financial Services such as Mobile wallet/mobile/payments is also turning into a potentially lucrative opportunity for operators in the digital space. If it doesn’t put them in the driver’s seat it will at least guarantee them a seat at the table.
Millicom appears to be doing all the right things.
- A partnership with Over-The-Top provider Facebook in Tanzania where it has launched the service as zero
- It doesn’t have its own music platform but in Latin America it has Tigo Music, which is a white label version of Deezer. Deezer sees this as one of its most successful implementations.
- In Colombia it is the biggest music distributor, bigger than iTunes and physical disc sales by record labels.
- “Through Tigo Cash (also known as Tigo Pesa) we have control of the wallet”
There remain considerable challenges for Millicom particularly in African markets where basic connectivity is still an issue in many areas. Millicom has made early moves and it definitely seems have its eyes firmly fixed on the road ahead.