Boundaries in the telecom spectrum are diminishing at a very fast pace. Traditional telecom players are trying to reposition themselves as different forms of media (audio, video & data) merges in telecom services with many new players providing services at various levels of telecom value chain. Such developments have increased competition leading to decline in revenues and profits due to reduced prices and lower customer retention rates.
Developments in technology such as next generation networks are continuously shaping the telecom landscape with companies trying to support them through enhancement in infrastructure and services. This is putting pressure on capital and operating costs. But there is a huge opportunity emerging to integrate the service offering and provide seamless services of voice and media to keep profits afloat. All of these require attention to evolving Key trends shaping the industry, alignment of strategy and solving challenges that lie ahead.
Key trends shaping the Industry:
Convergence: Not just networks but telecom industry is witnessing convergence in access side also leading to converged devices and services. New technologies like LTE are shaping the development of networks.
Network Capacity: Demands of consumers have changed making data more important than voice. With demand growing exponentially, video is the major component of traffic both in wireless and wire-line networks. Operators are adding bandwidth continuously to meet the rising demand.
Mobile Internet: Content in mobile internet remains the most important feature but content delivery is also becoming crucial.
New Services and applications: Infrastructure expenditure is pushing demand for cloud services and more and more applications focused towards different utility areas are being downloaded at a rapid space raising demand of bandwidth proportionally.
Globalization & Consolidation: Globalization has gained emphasis now due to regulatory liberalization and benefits of economies of scale. Developing markets are going to become the next big markets of telecom industry leading to significant consolidation of telecom operators in developed and developing world alike. Next five years are going to witness this phenomenon strongly.
Challenges facing the players involved in the industry:
Positioning: The major challenge faced by various partners is where to operate and develop competencies in the telecom value chain. Technological breakthroughs and plethora of choices available are shifting consumption pattern for telecom services leading to various business models adopted by various participants.
Optimization of resources: In the quest of building resources to support new technologies and services used by customers, the challenge is now to optimize them so that profits can be secured. To do so, deeper understanding of the tradeoffs involved is needed which will decide the future course of each player involved.
Retaining profitability: Intense competition has driven ARPUs down with strain on margins and increased customer churn. Detailed customer segmentation is required to arrest falling ARPUs and customization of offering for each customer group identified.
BMGI’s expertise in telecommunications area:
BMGI has closely worked with telecommunications industry for the past decade and has been a partner in its transformation. Its work in ensuring quality in operations, customer satisfaction, strategy planning and implementation, partnering & venturing has made BMGI a long term partner for players in telecommunications domain. BMGI’s indelible impact on the industry confirms its competency in solving most challenging issues.
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