The acquisition of business videoconference firm BlueJeans by Verizon points out a couple of ways connectivity providers can move back into the apps business. First, BlueJeans presumably still be available to any potential customers as a stand-alone cloud-based conferencing service.
That allows Verizon to profit from demand for business class videoconferencing as an owner of the service.
The total revenue contribution arguably is not the issue. Much business spending on videoconferencing historically has gone to hardware and software purchases, with relatively little spent on managed conferencing services.
But the value of the service now seems heightened, and a bundled conferencing capability adds distinctiveness and value to any 5G access service.
But Verizon also plans to integrate BlueJeans functionality more tightly into its business 5G offerings as well, creating more potential demand for Verizon’s flavor of 5G. In that way, Verizon’s 5G access service acquires more distinctiveness and features.
In principle, that same business approach has been pioneered by Comcast and AT&T, which license video content to third parties, but also build proprietary services sold under their own brand names, using that same content.
The acquisition is a good example of how at least some connectivity providers can move up the value chain and across the ecosystem, expanding value beyond simple connectivity.
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