The
telecommunications
industry is in a curious
place right now. Mobile phone usage, internet traffic and data consumption has
exploded and is only set to accelerate as far as most can see, yet telecoms
companies that provide the facility to do any of these things, are struggling
to grow at present.
There
are multiple issues but principally it is not obvious what business model
telecoms companies should adopt in order to secure their futures. Furthermore
all kinds of large new disruptive events in the industry are looming over the
next decade, from the emergence of new technology that might disrupt the main
players, the building of the 5G network, trying to realize the dream of the
internet of things and colossal M&A activity.
There
are some good opportunities present in the industry, but without careful
planning and redesigning of the traditional telecommunications business model,
it is entirely possible some of the world's biggest carriers might struggle to
stay independent over the next few years.
As
traditional voice, fixed line and messaging business models are eroding away,
telecoms companies are having difficulty finding the best method to innovate
and capture new business.
All
kinds of internet based services are effectively absorbing the key areas that
telecoms companies once dominated. The future for these companies involves
finding new monetization pathways, but deciding just which to pursue is proving
complex for the world's largest carriers.
The
positive for these companies though is that they control the means of
distribution and the infrastructure which is an extremely strong business
position to be in. Telecom companies are attempting multiple new business
models, from providing content, to complete connectivity packages, spreading
into new business sectors, consolidation and tiered speed packages. As yet
though, no clear method for escaping the traditional telecoms model has
emerged.
Every
few years the telecommunications industry comes up with another technology
designed to replace older networks and handle the increased demands on data,
latency and a wide variety of other concerns.
The
latest technology under development is 5G and as with other generations it is
being hailed as far superior to anything that has been seen before. 5G should
provide speeds that will allow the IoT concept to be realized and creating
smart cities.
If
the technology is as strong as the industry claims, it could have some
interesting effects of the nature of competition in the market, because
customers may start to choose 5G technology over fixed broadband in their homes
for instance.
However
some analysts are skeptical and see this technology as another money spinner
with limited value, when new Wi-Fi technology might actually make expensive new
5G mobile contracts unnecessary.
Appetite
for merger and acquisition in the telecoms industry has been strong for a long
time among leading company CEOs. Regulators and politicians, however, have not
been so keen. Previous efforts directed towards merging some of the big players
in the United States have failed on account of concerns competitiveness would
suffer enormously.
Now
the Justice Department in the US has lost the case against the planned merger
between AT&T and Time Warner the way has been left open for consolidation.
Many within the industry say this is required, primarily for two reasons: to
compete against the rapidly expanding Chinese telecoms giants, and to plough
the required level of investment into the new 5G network. Much change is afoot.
Examine
the business landscape in the telecoms industry and how the big players are
coping
See
just how the environment is difficult and new business strategies need to
evolve
Explore
some of the biggest M&A deals, why they happened and how they are fairing
Prepare
for the new 5G and Internet of thing environments and how they might effect the
big carriers
To know more, click on the link below:
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Contact Us:
Ken
Research
Ankur
Gupta, Head Marketing & Communications
0124-4230204