The survey shows that the
majority of telecoms industry insiders now believe that telcos need to
dramatically alter their business models if they are to prosper in the
Web 2.0 world. In particular, most industry professionals believe that
Telcos need to be structurally separated into different businesses - one
focussing solely on the network, and the other on the retail and
services business - with fresh blood brought into manage these
businesses.
Simon Torrance, CEO of STL, commented: "The Telco industry has woken up
to the threat posed by the internet and Web 2.0 business models. It now
needs to address those issues."
STL surveyed over 550 industry insiders from Operators, IT vendors,
analysts and 'disruptors' in Western Europe, North America and APAC.
Key findings from the survey include:
- 75% of respondents lack confidence
in Telcos' ability to create long-term sustainable growth in an
IP-based world
- * 68% felt Telcos have lost control
of their core product - Voice and Messaging are no longer the
exclusive domain of Operators
- 76% felt that the controlling
culture of Operators (manifested in a "walled garden" approach to
services) is no longer viable and that the openness found in the
internet world is far more relevant
The survey also finds that the Telco
industry needs to change its thinking, moving away from focussing on the
technology to being more aware of end-users' needs. Those surveyed felt
that only by bringing in senior management who are experienced in
running profitable, customer-facing internet & IT businesses to manage
their retail service businesses will Telcos be able to compete for
customers more effectively.
"In Western Europe in particular, BT is held up as the clear leader.
Having been forced to separate its businesses by the regulator, it has
been bringing in new blood from outside the industry, and is doing
relatively well as a result," Torrance continued. "The big challenge for
all telcos - fixed, mobile, BT included - is in making money from retail
services. Skills in creating attractive new services are severely
lacking and this is where a radical change in thinking and
organisational structure is needed." Of the over 550 professionals
surveyed the breakdown includes: 30% operators and service providers,
35% Network Equipment Providers and IT vendors, 11% Telco 'industry
disrupters/start-ups' and 25% Consultants, Analysts & Academics.
Building on this survey, the updated Telco 2.0TM Market Study provides a
comprehensive roadmap for telcos to make the changes required to remain
competitive. The full survey results can be found in the study at
www.telco2.net/marketstudy.
STL will be discussing the issues raised in the Telco 2.0TM survey at
their next Industry Brainstorm on 27-29 March 2007. For further
information on STL and the Telco 2.0TM initiative, please visit:
www.telco2.net
About STL
STL is an advisory and analysis firm specialising in supporting
innovation and change in the Telecoms, Media and Technology (TMT)
sectors.
The telecom industry was structurally stable from the early days of the
telegraph and telephone systems through to the arrival of mobile
telephony, despite rapid technology change and varying fortunes of
individual players. We now see a need for change in the industry to
reflect a new world increasingly unlike that experienced before.
In May 2006 STL set up the Telco 2.0TM Initiative to help drive industry
understanding and change. More information can be found at:
www.telco2.net
Telco 2.0' is a registered trademark of STL.
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