What Telcos Must Do To Stay in Business
It’s no secret that the decline of the core telco revenue streams is following a faster trajectory than anticipated and the trend is expected to continue.
The hype around 5G is creating a deceptive mirage. The reality is that it will take a long time to get the payback on any 5G investment. And that will only happen if the new revenue streams are discovered on the 5G platform.
However, a large part of 5G is still all about building a fatter, faster, and more efficient pipe!
Telcos are on the brink of extinction when it comes to profitability and margins. They won’t be able to succeed by only taking a network-centric, connectivity-based approach. There is a need to find new revenue streams and to do it quickly!
And to do that, and get back to healthy profitability margins, telcos need to move up the value-add stack.
Open Up The Assets Through Digitization
Telcos are sitting on a treasure trove of assets. But these assets are locked into silos and are managed by teams who do not have the mandate to monetize them. They also don’t have the right tools and skills to do so.
While these valuable assets are just sitting there, handset and OTT digital service providers are working around telcos to get to them. This puts telcos in a unique position to fill that gap for the OTT providers – but they can only do it if they take steps to collect and harness the relevant information and build partnerships to monetize them.
Telcos have to develop active programs to digitize their assets across the board so they can be shared internally and externally with business partners, and so they can reap business benefits such as reduced cost of development, vendor independence, enhanced customer experience, faster time to market, unlocking of new revenue streams, extending the reach, etc.
Digitization can help in opening up these assets to external partners. But the digitization of assets should not be done for the sake of it, but with the priority put on the monetization. This means that digitization is only the first step. Monetization is the real destiny!
To find out more, click here to read the whole blog post on the TM Forum’s website.
Our team will be at the TM Forum's Digital Transformation World in Nice, France on May 14-16. Come meet with us and let us help you stay in business and prosper.