Telecom operators need to radically rethink their approach to the deployment and management of telecom networks if they wish to remain profitable, Informa Telecoms and Media warns.
In new research, the firm highlights the rapid evolution taking place in the telecom market, including erosion of voice revenue, the OTT threat and declining value chain profits.
Operators are responding by adopting technologies and processes from successful markets such as IT and Web domains. But before they can succeed with these approaches, Informa said, they will need to transform their operations and business models first.
Telcos must redefine the deployment, maintenance, operation and monetization of telecom networks, Informa principal analyst Dimitris Mavrakis said.
“Mobile and fixed operators are under a considerable threat from parties both inside and outside the traditional telecoms value chain. Given the threatening economic environment, operators are scrambling to find ways to optimize and transform their business,” he said.
“Operators that can transform into agile companies that operate lean – and preferably more open – networks will be the winners of tomorrow.”
He said adopting new technologies such as all-IP, IPv6, SDN and virtualization will require significant upgrades to the core, transport, service provisioning and signaling parts of the network as well as to OSS.