Why telco’s need to be digitally enabled?
As digitization reshapes the landscape of the telecommunication industry – the incumbent telco is at a crucial point in determining its future, and finds itself in the middle of a paradox.
Up until the recent past, telco’s were able to sustain operations and meet revenue targets through core voice and SMS services. However, with the widespread low cost data options, telco’s are facing a dilemma of decreasing returns and being forced to offer superior and expensive service qualities to retain customers. Therefore “thinking digital” needs to be deeply embedded in telco’s business models.
Digitization is not a threat. It offers telecom companies an opportunity to rebuild their market positions, recreate their business systems and develop innovative offerings for customers. Thus, being digitally enabled allows telco’s to offer OTT services upon their existing network infrastructure and achieve ubiquitous connectivity with customers.