The telecommunications Industry is going through an inflexion point that is driven by high market penetration, network capacity constraints, net neutrality regulations, market consolidation , intense competition from OTT business models and increasing customer demands. In the consumer segment, Communications Services Providers (CSPs) are facing intense competition and price wars from OTT providers and market disruptors. As a result, the consumer market segment is characterized by high customer churn, flat or declining ARPU, and increasing infrastructure investments for network capacity required to support high data consumption driven by proliferation of mobile devices. Device proliferation is also creating new opportunities for CSPs to deliver varying forms of content to consumers on multiple devices and create advertising based business models.
In the Enterprises segment, Telcos are having to transform their business model from connectivity services provider to Information and Communications Technology (ICT) Solution provider. The factors driving this transformation include Cable MSOs aggressive growth in the enterprise markets against the Incumbent Telcos; commoditization of connectivity services is producing low margins; the increasing adoption of cloud technology; and growth of enterprise IT and Network outsourcing opportunities.
As a result of these market trends, virtually all service providers in the Telecommunications industry are transforming their business model by launching new digital services such as OTT and IoT-enabled service offerings, creating new ecosystems of partners and suppliers, revamping the customer engagement and experience models and optimizing cost structure to support their ‘renew’ and ‘new’ business models.