In the telecommunications sector, the network effect has moved from the Telecom Operator to the content aggregator / digital platforms, exemplified by growth of Google, YouTube, Facebook etc. Content aggregators demonstrate strong network effect as a large number of content providers on a platform bring higher number of consumers, further enhancing attractiveness for content providers. With internet becoming main stream, early content aggregators have become near monopolies, rendering them tremendous economies of scale and pricing power, leading to significant value creation over the past 10 years.
