The telecommunications space is one that is constantly changing, posing new challenges at every turn, bringing new innovations to the forefront and creating opportunities where they didn’t previously exist. For those organizations operating in this space, a failure to embrace specific opportunities could mean the difference between success and obsolescence.
For instance, too many are experiencing the strain related to the decline in voice and messaging revenues. The adoption of RCS VoLTE could slow this trend, maximize revenues and create relevance for both consumers and enterprise customers. How critical is this move? According to figures shared in a recent Telco 2.0 Initiative report, the total decline is forecasted to be between $92 billion and $172 billion.
There is, however, a potential to exploit new opportunities and standards while also delivering advanced enterprise communications services. With the advancements in WebRTC and the proliferation of RCS VoLTE solutions, telcos can defend against disruptive competitors. In some markets, however, telco pricing and prevailing economic conditions have created opportunities for Over the Top (OTT) players, putting all telcos on the losing end.
At the same time, there are other opportunities emerging where telcos can build new value, especially in the enterprise market. Traditional technology companies that have dominated for years, such as Cisco, are now facing increasing competition from Microsoft and Google (News - Alert), disrupting the industry and forcing a change in the business model.
Fortunately, telcos can get on board with the Telco 2.0 Initiative, launched in 2006 by analyst and consulting firm STL Partners. This initiative was designed to help drive the transformation of the telecom industry, paying particular attention to the new business models available, as well as service innovation to stand apart from the threatening competition. As this initiative relies on contributions from key telcos and technology companies from around the world, there is a unique focus on best practices and lessons learned.
Meanwhile, one telco is making strides in its target market with the launch of the world’s first international VoLTE HD voice and video network. China Mobile (News - Alert) has partnered with Huawei to demonstrate the capability between a TDD LTE Network and a FDD LTE network. China Mobile understands the importance of RCS VoLTE and its development and the provider plans to achieve VoLTE commercialization by the end of 2014.
Ultimately, telcos have to decide on the direction they want to go based on the opportunities created. They may also get stuck with the painful decline of market share if they don’t pay attention to the competition from OTT providers. Consumers and enterprise trends will ultimately set the pace. Being willing to embrace the opportunities that come out of these trends will dictate the success or failure of the telco in the long run.
Edited by Blaise McNamee