Telecommunications Industry – Business Drivers

Telecommunications Industry – Business Drivers

To provide solutions to clients in the Telecom industry, it is critical to have a comprehensive understanding of their business, their objectives, and their challenges – those business challenges unique to their organization as well as those triggered by the industry and marketplace. The following article provides an overview of the key business drivers that are impacting telecom carriers and hardware providers.

Business drivers are internal and external influences that can impact any industry significantly both positively and sometimes negatively. To work successfully in any industry domain, it is essential to understand and experience the key business drivers and challenges impacting that industry. To successfully compete in a highly competitive and demanding global marketplace, Telecom companies must develop sales and marketing strategies that increase operational efficiency and drive profitability.

Economic Cycles:

Economic cycles affect all industries and they are major drivers of the telecommunications industry on an international scale. The impact of Economic Cycles can be both positive and negative for any industry. Due to its large scale of operation and increasing cross-border presence, the telecommunications industry is a bit more sensitive to these cycles. Through its history, the telecommunications sector has often demonstrated its robustness in downturns and periods of market uncertainty. The recent past has been no exception. The sector is riding out the economic storms relatively well. Against this generally improving outlook, there are conflicting perspectives on how the sector will evolve. Investors are also concerned about the massive capital that will be needed to support this growth, and the need to secure new revenue streams.

Consumer Demand and Changing Mindset:

Another key business driver in the industry is increasing consumer demand and changing consumer preferences. With global technology brands now top of mind for consumers, and technology cycles quickening, operators need to understand and respond to fast-changing customer expectations and behaviors. This will require operators to communicate clearly the underlying value of the network and the sources of added value that differentiate their offerings in new service areas.

The use of multiple devices per user is increasingly the norm. And the time taken for new technologies to reach penetration is shortening rapidly down from ~15 years for mobile phones to ~4 years for smartphones and tablets. The market for traditional telephone service, or landlines, is declining while the number of cellular subscribers continues to grow. As a host of players from the technology and telecoms sectors seek to deliver new services, the need to differentiate is paramount. With this imperative in mind, operators should clearly define and communicate their core added value.

Technological Innovation & Business Intelligence:

To drive profitable customer propositions and improve their time-to-market for new innovative products and services, operators and telecom players need more accurate, timely, and comprehensive business intelligence and customer analytics. They also need integrated operational support and billing systems. These elements pave the way for efficient growth by enabling operators to produce better business intelligence for decision-making, helping them understand customer changes before their competitors, and allowing them to reuse network data in collaborative partnerships. Better information can also help operators reduce operational costs and ensure regulatory compliance.

Companies are investing heavily in innovation and the development of technology and infrastructure, creating growth in business activity while new value-added products and services drive consumer spending. Differentiation is the key in the future where the consumer has more choices due to increased competition among various operators.

Regulatory Approach:

Another key business driver is the regulatory approach after deregulation and competition. As new market structures emerge, the regulatory approach to these evolving sector ecosystems remains unclear. Many companies expanded and began offering services in several branches of telecommunications post-deregulation. The opening of the industry has led to rapid growth and the formation of new companies, leading to a surplus of available services. Consolidation in markets worldwide will continue to impact pricing and investment.

Going forward, new spectrum releases will shape 4G market structures and the rules vary from market to market in areas such as spectrum caps and trading. In new and emerging areas such as mobile money, regulatory jurisdictions and policies continue to lag behind the technology.

Privacy, Security, and Resilience:

Customers and business partners expect telecom players to be their security guarantors across a range of services. This is a great challenge for the telecom operators as they have to try to fulfill this role while coping with an array of threats that are expanding rapidly in number and severity.

The challenges are compounded by rising concerns among customers. As mobile phones evolve into personal data hubs, end users are facing privacy and security dangers that are escalating and multiplying, as threats converge from a range of environments, including SMS, MMS, Cloud, Web 2.0, and Mobile Apps. As a result, customers are now as concerned about data integrity as they were about to call quality a few years back.

Related Links

Creation Date Sunday, 24 June 2012 Hits 31603

You May Also Like

  • Overview of the Telecommunications Industry

    Overview of the Telecommunications Industry

    Modern telecommunications industry players produce communication equipment and deliver a set of voice, data, and broadband services using wireline or wired infrastructure of cables, networks, servers, computers, and satellites. In this article, we will define the telecom industry and discuss some of the key business drivers. Understand the various constituents of the telecommunication services sector followed by a small discussion on current industry trends.

  • Telecom Industry & Technological Innovations

    Telecom Industry & Technological Innovations

    The second factor influencing the telecommunication industry greatly is technological advances. Technological advances in recent times have dramatically changed the dynamics of players involved in the telecommunications infrastructure, equipment, and services sectors.  This article will discuss the impact of technological advances and the risks and opportunities it present to the industry. Shift to 5G, AI, IoT, etc. and adoption of these technologies are current telecom trends.

  • Imperatives of Telecommunication Industry

    Imperatives of Telecommunication Industry

    The telecommunications industry continues to grow steadily on a global scale. The most important imperatives shaping the modern telecommunications industry are globalization (worldwide scale), technology (latest advancements), and deregulation. The first factor shaping the telecommunication industry to what it is today is globalization. The second factor influencing the telecommunication industry greatly is technological advances. This article briefly discusses these three imperatives.

  • Telecommunications Industry – Business Drivers

    Telecommunications Industry – Business Drivers

    To provide solutions to clients in the Telecom industry, it is critical to have a comprehensive understanding of their business, their objectives, and their challenges – those business challenges unique to their organization as well as those triggered by the industry and marketplace. The following article provides an overview of the key business drivers that are impacting telecom carriers and hardware providers.

  • Telecom Industry & Globalization

    Telecom Industry & Globalization

    The telecommunications sector is an important strategic segment of the modern economy. As globalization set the stage, the telecommunications industry became gradually a more global industry with increasing competition. The first factor shaping the telecommunication industry to what it is today is globalization. The telecommunications industry transports information at such incredible speeds that the concept of the virtual world has become true. This article will discuss the impact of globalization and the risks and opportunities it present to the industry.

  • Debate on Need for Deregulation

    Debate on Need for Deregulation

    There are many arguments in favor of deregulation. Advocates argue that continued regulation can only support the development of static markets whereas deregulation is necessary for the development of dynamic markets. Market convergence and related infrastructure competition are more likely to take place in dynamic markets. In many telecom markets, deregulation is currently being discussed, in this article, we will examine the impact of deregulation on the overall economy and study arguments that are placed in favor and against deregulation.

  • Telecommunications Industry & Deregulation

    Telecommunications Industry & Deregulation

    The Telecommunications Act removed regulatory barriers to entry, opening up the market to new competitors. Deregulation led to a large number of new players. The third factor having a great influence on the modern telecommunication industry is deregulation. This article will discuss some thoughts on the impact of deregulation and unfettered competition on industry and a brief debate on deregulation versus some new form of regulatory intervention.

  • Telecommunications Industry Profile

    Telecommunications Industry Profile

    Broadly telecom industry can be divided into two sectors, Equipment Sector and Services Sector. Equipment sector players manufacture telecom products whereas the services sector comprises operators and other service providers. The telecommunications industry equipment sector is comprised of companies that manufacture products that are used by both end-users and input to other telecommunications companies. Customers use these products to access telecommunications services. In this article, we will discuss the industry profile of telecommunications.

  • History of Telecommunications Industry

    History of Telecommunications Industry

    The history of telecommunication began with the use of smoke signals and drums in Africa, the Americas, and parts of Asia. In the 1790s, the first fixed semaphore systems emerged in Europe; however, it was not until the 1830s that electrical telecommunication systems started to appear.  Follow this advancement from smoke signals to modern-day internet and mobile technology, understanding the events that have shaped the world of telecommunications.

  • International Telecommunications

    International Telecommunications

    The telecommunications industry has been among the best performing industries in the world in recent years. Until the 1980s, the governance and regulation of international telecommunications regulation were relatively straightforward where state-owned telecom companies provided services within discrete national boundaries. International traffic was carried at rates mutually agreed upon by governments and their respective national carriers. A brief discussion of how the industry is shifting to a multilateral trade framework.

Explore Our Free Training Articles or
Sign Up to Start With Our eLearning Courses

Subscribe to Our Newsletter


© 2023 TechnoFunc, All Rights Reserved