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The future of the telecommunications industry

Now, telecommunications sector is becoming oversaturated and average revenue per subscriber for both fixed and mobile is declining. At the same time, capital requirements remain high and usage rates, especially for mobile video, are skyrocketing. These factors make it difficult for companies to create additional value. In the past, they have relied on cutting costs, expanding infrastructure, and maintaining and increasing margins to ensure robust growth. But this strategy obviously has its limits.

Experts from The Boston Consulting Group (BCG) are advising operators to tackle the challenge by shifting their focus to new areas of growth such as:

• Expanded product offerings
• A takeover of other companies
• Partnership
• Expansion of the geography of presence
• Entering related markets
• Innovative business models

However, the challenge for telecommunications is that emerging service markets such as cloud computing, mobile payments, messaging, digital services, digital advertising, e-commerce, the Internet of Things are already highly competitive. Success here depends on the careful approach of companies to the choice of growth opportunities.

Identifying the right growth opportunities requires a multifaceted approach based on identifying the strengths of the company and its goals. Determining the answers to the following questions will help make the final decision. Where is your organization already strong? Which of the existing assets can be used to offer new services and products?

Telecommunication companies can win a share in this industry in several ways.

Net

Digital providers need to find cheaper and better ways to deliver their services. They benefit from a partnership with the telecommunications sector, as it will allow the use of already existing networks.

Client base

Telecom companies can integrate digital services through upsells and cross-sells. This is a logical way to increase your value.

Consumer data

Some digital services require customer data and profiling, which can be provided by telecom operators.

Brand power/distribution

In most regions, telecommunications companies have good market entry opportunities, which is beneficial for those types of services that need reliable local distribution.

Payment relationships

The telecom sector can act as a payment intermediary for companies that are unable to create their own payment solutions.

Alternative to Silicon Valley

Silicon Valley developers tend to target large markets first. Telecom enterprises can create local versions of some services and enjoy the first-mover advantage.

Efficiency

Digital technologies also have the potential to drive growth through increased productivity within the core business.

The business itself is changing, but the idea of faster customer service while reducing transaction costs is not new. In principle, technical people already have a much better understanding of how it all fits into the business, and, of course, those who manage the processes are well aware of how the industry as a whole work.