Telcos set for “roller coaster ride” in 2015

The telecom business model will undergo dramatic transformation in 2015...

The telecom business model will undergo dramatic transformation in 2015, with a minority of telecoms set to reinvent their business model and enter new market segments to become stronger industry forces.

That’s the view of Forrester Research, who following recent findings, also claim that the majority of telcos will be bought or go out of business, thus driving consolidation across the market.

“At the same time, for business leaders, having access to quality network infrastructure represents a vital underpinning for their digital business and their long-term competitive advantage,” notes Dan Bieler, analyst, Forrester Research.

Consequently, Bieler predicts that the telco business model will shift from sustaining to enabling critical infrastructure.

“Traditionally, the telco business model focused on sustaining operational efficiency of network infrastructure,” he explains.

“In the years ahead, we predict a shift toward enabling solutions that support telco clients to engage with their customers more effectively.

“This mirrors not only the CIO’s shift from IT towards business technology but will also be the overarching theme during the transformation of the telco business model.”

Furthermore, Bieler believes that mobile broadband “opens telcos a role” in customer engagement and workspace services.

“In the medium-term, we expect mobile broadband to offer telcos an opportunity to raise their profile,” he adds.

Read more: Telcos could lose up to half their customers in 2015: Ovum

“Mobile broadband will give telcos a stake in developing interactive and collaborative customer engagement and flexible workspace solutions.

“Winning telcos will offer business-process focused device and app management and become important partners for CIOs.”

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