7 Reasons Why Telcos Need To Take A Bold Step By Digital Transformation

TORONTO - Feb. 1, 2018 - PRLog -- All good things come to an end. 2014 was the first year when the total global revenue of Telcos had a marginally negative growth. Was it the beginning of the end? Will Telcos, the way we know them, not last? My answer is a resounding yes, but their fate hinges on the extent of Digital Transformation they undertake; here is why:

Current Telecom Environment in Developed Countries:

• Data usage is going through the roof
• However, ARPU is not growing proportionally

• OTT Services account for nearly 50% of the traffic during primetime, hence infrastructure capital costs are increasing

• Market penetration of wireless is approaching 100%, thus revenue is stagnating

• As intensity and frequency of new technology disruptions increase, time window to recuperate tech and services investment, decreases dramatically

• Higher costs of handsets, mean subsidies are expected to be higher, as the price plans are not increasing proportionately

• More new entrants in the traditional Telco space. As a consequence- EBITDA is dropping with constant Revenue and Opex pressures

….So how are the operators countering these forces?

Using Digital to Open New Frontiers (New Markets, New Segments)

• Pivoting to become digital lifestyle brands

• Blurring the ICT lines and evolving digital strategy from being plain vanilla Telcos to providing content, healthcare, IT services, and cloud services

• Flexible architecture, digital processes to enable shorter time to launch new services

Read the complete imperative study http://blog.mobilelive.ca/the-digital-telco-imperative