Skip to main content

How Telcos Avoid the Digital Disruption Trend in 2017

Industries that have always embraced the adoption of new technologies are not immune to being digitally disrupted by savvy new market entrants. The global telecom service provider market had a long history of relative stability. Now, however, business model disruption is pervasive.

The market is in a state of rapid evolution, with telecommunications companies now competing against more progressive web-scale companies. They can deploy a new service in a matter of hours, thereby delivering real-time experiences to their online subscribers.

As more customers demand instant access for digital services, ABI Research predicts many Tier One telcos will transform into digital service providers (DSPs), in order to compete more effectively with over-the-top (OTT) players -- such as Google and Facebook.

Digital Services Market Development

"Digital transformation is the ultimate goal for telecom network operators. For instance, T-Mobile Un-Carrier digital offerings likely played a huge role in boosting the company's total revenue by 48 percent over the past three years," says Sabir Rafiq, research analyst at ABI Research.

But it may not be possible for all. While Tier One telecom service providers will likely transform to into full-service DSPs, smaller telcos may remain purely internet access-oriented.

An industry misconception is that telcos simply need to upgrade their traditional operations support systems (OSS) and business support systems (BSS) in order to undergo the required digital transformation. According to the ABI assessment, this approach will not enable telcos to survive the long-term disruptions.

"BSS and OSSs are reactive platforms capable of providing telcos with basic services, such as configuration management and billing," continues Rafiq. "Now is the time that telcos need to be investing in DevOps and Agile development models."

Only then will telcos be able to rapidly launch new services and improve their new offerings post launch, in real-time, as they receive detrimental feedback from customers.

Outlook for Telco Digital Transformation

Savvy telecom service providers can work toward completing the digital transformation by deriving analytics from the vast amounts of data they hold, aggregating the analytics to provide valuable insights, and then consolidating IT and communication platforms to build an ICT infrastructure.

This will enable the creation of new types of services, and potentially generate an agile environment that is proactive, rather than reactive to market changes.

"Digital transformation should be on the minds of all telcos right now, and they need all of the help that is available to them," concludes Rafiq.

Popular posts from this blog

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d

How Ride-Sharing Apps Changed Local Transport

Building on significant advances in disruptive mobile app technology, ride-sharing services have emerged to become a popular means of urban mobility. This is unsurprising given the advantages of ride-sharing options over traditional transport modes, such as buses and more expensive taxis. Innovative ride-sharing platforms enable app users to customize their journeys according to real-time phenomena, such as nearby traffic conditions, time of day, and rider demand. However, this is not to say that ride-sharing services are perfect. The popularity of ride-sharing has resulted in some additional traffic congestion in major cities already struggling to control this issue, while the widespread disruption caused by the pandemic affected most stakeholders within the local transportation value chain. Ride-Sharing App Market Development According to the latest worldwide market study by Juniper Research, ride-sharing spending by consumers globally will exceed $937 billion by 2026 -- that's c