The GSMA has been gradually expanding its remit over the years, but its latest move is one of its most radical – setting itself up as a kind of Amazon for its mobile operator members. It has announced GSMA Marketplace, an online commerce site which it claims will improve inefficient procurement processes by offering a common platform for buyers and sellers.
That will make it quicker and easier for users to find the best deals and will enable vendors to create their own online storefronts, catalogs and promotions targeting telecoms buyers. About 1,300 buyers and sellers have already signed up, with the latter being charged $1,500 a year. The figure includes 135 buyers (which get the service for free), nearly all of them cellcos including NTT Docomo, SK Telecom and Vodafone Spain. Vendors which have gone public include Amdocs and Ruckus.
As well as the marketplace function, the system will also provide a strong research platform for users to analyze markets and competition and find partners, said the GSMA.
The Association’s CEO, John Hoffman, said the service would allow users to “browse, contact and connect with companies who can help you achieve your objectives”. He added: “Our members asked us to set up the Marketplace and as an industry association we are in a unique position to attract buyers and sellers in telecoms from all over the world. We are focused on establishing it as the premier online destination to do business in the future.”
Roll-out will be phased, with the first stage being the facility for buyers to search for and contact vendors, as well as the market analysis tools. Subsequent stages will be partly decided by user feedback but could include seller accreditation and service ratings. Of course, the logical extension would be to support actual transactions, which the organization hopes to add in future.
The size of that activity could be sizeable. The 800 operators and 250 vendors and enterprises in the GSMA’s membership list will purchase $1.3 trillion of goods and services by 2017, says the body, with 78% of that procurement done by mobile operators.
The GSMA admits it will take time for many large operators and vendors to alter their usual procurement processes and relationships, and says the low hanging fruit will be in emerging markets and among small and medium-sized buyers which may be under pressure to cut costs and shop around, but have found broad platforms like Alibaba too generic.
A spokesperson said: “Procurement in telecommunications is currently expensive and sometimes inefficient. Additionally, the current system does not have a side-by-side comparison tool so buyers often do not get the best price. GSMA Marketplace is designed to make it a simpler, less expensive and more efficient process by bringing key stakeholders together in one online location to do business.”