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Operators face “oblivion” in post-voice world

07 мая 2009

Operators that refuse to adapt to the “post voice” world face “oblivion”, the former Orange CEO and current Chairman of Augere, Sanjiv Ahuja, has warned.

Speaking at the TM Forum’s Management World conference in Nice on Tuesday morning, Ahuja said that operators need to address the opportunities provided by the new way information and entertainment is accessed and distributed. But, he warned, failure to do so would result in several operators becoming either bit pipes, or losing market value altogether.

 “We need to plan for post-print media life and work out how to deliver digital content. We are still delivering digital content in a linear way, and we need to be thinking of a different way,” he said. “We have to figure out how we are going to monetise this infrastructure to deliver this digital content.”

Ahuja said that telcos must reduce cost rapidly, even if that can’t be the whole scope of their strategy.

“Cost reduction is an absolute imperative, and I understand that shouldn’t be the sole strategic priority, but  companies that don’t retool themselves will find themselves going out of business. Several telcos will become dumb pipes and go back to what we have seen before,” he added.

The OSS/BSS Opportunity

Ahuja said telcos need to take the take the real-time information and infrastructure that telcos have, the billing, authentication, location info, and monetise that.

“It’s not that telco infrastructure providers don’t see that, the challenge is it requires a complete transformation of their business model and that is very hard for successful businesses to go through. No company has truly succeeded in making that transformation of the business model happen,” he said.

“What we in telcos have failed to do is take the data and truly turn that into business insight  - and then transformed it into services our customers need and demand. That’s where we as an industry are lacking, that’s where we as OSS/BSS systems providers have tremendous opportunity,” he said.

Keith Willets, Chairman of the TM Forum, said that the two-sided Telco2.0 business model is not a new idea, but that the challenge is in making it happen.

“The hard bit is taking the powerpoint slide and turning it into operational, technical and business reality. A lot of thinking is needed on where you differentiate and where you standardise,” he said. “There are areas where we can look for standardisation, in how content flows around at very low unit cost, in enabling advertising. Because this can’t add cost, it has to make money.”

Simon Torrance, CEO of the Telco 2.0 initiative, said that the time is ripe for the telco industry to seek investment, as it is seen as a defensive sector during a recession.

But it will require organisational change at all levels, he said, to align with the new business models.

“Often the metrics that drive activity within service providers are not aligned with the new business opportunity you are trying to create,” he said.

Источник: Mobile Europe

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