Innovating the Telco Business Model Drivers and Emerging Trends

| Point de vue

Analysis into current and future innovative telco business models.

The operating environment for telcos is turning increasingly complex. Telecom operators who had grown on the back of traditional voice and data services are realizing that as consumption patterns are rapidly changing, value not only moves to other stages in the telco value chain but also into completely different markets. Subsequently, their old business models are coming under increasing pressure and appear to be crumbling. Some telcos have understood this rapidly evolving scenario and have taken steps to ensure that they are in tune with the changing times. How else can one explain the fact that a fiber operator convinces its customer to dig up the last mile connectivity, or that a telco enters into reselling energy and gas agreements, or that consumers in certain markets have opted for advertisements to be a core part of their mobile experience? These developments represent only a fraction of the innovation in business models that telcos can partake in. They, in turn, are being driven by a range of broader trends that are currently impacting business models the world over. Telcos should consider taking steps to incrementally change their business models, while striving to adopt radical approaches in select areas, and challenge traditionally accepted norms of where a telco fits into the larger ecosystem.