Tuesday 21 February 2017

19/02/17 - Mobile giant Three to block online advertising (48)

http://www.telegraph.co.uk/business/2016/02/18/mobile-giant-three-to-block-online-advertising/


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This article is talking about how the mobile provider, Three, will next week announce a deal with Shine, an Israeli technology company that specialises in blocking mobile advertising. Many people have also stated that this Israeli company is very controversial with it's business. It is understood that Three UK will announce that it will begin trials of the system with a small group of customers over the next few months to develop designs for a roll-out across its network. In addition, it also talks about how since a large company is prepared to take these actions will also cause serious unease among digital publishers, who rely on mobile advertising for a small but growing share of their revenues. Furthermore, The controversial move has attracted the attention of regulators, who have claimed Digicel may amount to an unlawful interception of communications and violation of ‘net neutrality’ principles, whereby all data is treated the same.
  • Olaf Swantee, the departing chief executive of BT’s mobile operation EE, told The Telegraph last year that he was considering how to clamp down on the most “intrusive or crass” mobile advertising. O2, which Three UK is attempting to acquire for £10.25bn, has also said it is looking at restrictions.
  • Shine’s investors include Li Ka-shing, the Hong Kong billionaire behind CK Hutchison, the owner of Three.
  • It is understood that Shine has suggested that Three follow the Digicel model, although the European operator has not decided the details of how it will use the technology. It could target only the most disruptive or data-hungry types of advertising, such as videos that play automatically. But it is understood Three believes advertisers should pay for the data consumed by their messages.
In my opinion, I believe that with Three blocking the online advertising may be beneficial towards them but not towards the others. The reason for this is because other companies would use Three considering they are a large mobile provider company and therefore would try to make profits from them to help out with their own businesses. However, since they are blocking this, it can have a huge effect on the other companies. I believe that this is a good thing, to some extent, due to the fact that businesses are trying to use their business as a point where others can make money off them and therefore, I believe that this type of online advertising is wrong. On the other hand, Three are also a company which use online advertising to some extent and if they do it, I don't see why others can try and make a revenue of them.

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