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Ofcom to Investigate User, App & Infrastructure Cloud Services

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The regulator has identified the invasive ubiquity in which digital, cloud-based services dominate everyday technology. With each new implementation and advancement, the integration becomes more seamless and unknown to the user.

Data Drives Data

No longer is it the hardware or infrastructure that demands attention, but the software, services, and ultimately end-user experience.

With battles between opt-ins and opt-outs, and the over-arching attention to control and tracking of user activity, the prevalence of cloud services and how they're implemented has come into the spotlight.

Ofcom describe the 'Digital Communications Value Chain', that highlights the seamless flow of cloud-serviced information between each stage :


Wholesale Inputs

  • Content Producers
  • Advertising Services

End-User Services

  • Social Media
  • AV Services

Gateways

  • Smart Devices
  • Search Services

The Big Three

Between 2018 and 2021, the supply of cloud services from companies that aren't the Big Three has dropped massively from 30% to 19%. Meanwhile, Google has seen a minor increase from 12% to 16%, Amazon has fluctuated from 41% to 40%, and Microsoft has seen the greatest increase from 17% to 25%.
Between 2018 and 2021, the supply of cloud services from companies that aren't the Big Three has dropped massively from 30% to 19%. Meanwhile, Google has seen a minor increase from 12% to 16%, Amazon has fluctuated from 41% to 40%, and Microsoft has seen the greatest increase from 17% to 25%.

Consider the following scenario
  Based on your Google Search History (GCP) and activity on Facebook (AWS), you see an advert or social media post for a deal at Morrisons. As you have an Alexa (AWS), you have the capability to order your shopping through the device, and take advantage of the deal. This entire journey is digital, cloud-enabled, and comprises each stage of the Digital Communications Value Chain, and two of the Big 3 Cloud Provider companies.

This is just one example of a user journey, in addition to the millions of others that comprise companies, services, and apps that all compete for your data and attention.

A Widening Scope

As of January 2022, WhatsApp leads the market in direct/instant messaging apps with a global, monthly active user count of 2 billion. Contrasting this, as of July 2022, the number of Internet users stands at just over 5 billion, and those who use social media 4.7 billion.

Most Downloaded Mobile Apps Worldwide from Q1 2014 to Q3 2021 (in billions) WhatsApp 6 billion; Facebook Messenger 5.4 billion; Facebook 5.3 billion; Instagram 3.4 billion; TikTok 3.2 billion; Snapchat 2 billion; Subway Surfers 1.6 billion; YouTube 1.6 billion; UC Browser 1.5 billion; Shareit 1.4 billion
WhatsApp is not only the messaging app of choice, but the most downloaded app. More importantly, WhatsApp and the 3 apps that follow it are all owned by a single company, Meta, and combine for a total of 20 billion downloads across 7 years.

Ofcom is to expand their investigation into the examination of messaging and video calling services, such as WhatsApp, as well as Apple's FaceTime, and Zoom. For comparison, while Meta control multiple services, Apple control their hardware implementation. These connections and structures highlight the close workings, ownership, and market capitalisation of 'big players'.

The nature of the reviews will focus on how these digital communications affect the role of traditional cellular calling and texting. In addition, Ofcom are to explore audio-visual 'gateways', or smart devices, and the crossover between service provider bargaining power, and content providers. For both aspects, the evolution that is expected through innovation and intense competition will be considered.

Emerging technologies that massively affect core components of consumer and commercial life are important to review as with each innovation, there is the likely chance of new risks and harm..

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