Telecom operator revenues will stabilize, with even a growth outlook of 1.2 percent for eight major European countries, said Arthur D Little.
B2B2x market – operating customers’ digital solutions – is forecast to account for 8 percent of ICT spending by 2020 (up to $276 billion) yet remains an untapped opportunity for operators.
Telecoms could gain market share from traditional IT players who have not yet gained the same level of efficiency, maturity and capability in operating such diverse tech assets.
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The telecom research report said telecom network operators’ production models are changing. Thanks to the need for customer experience, ongoing innovation will drive networks and IT resources to become more flexible and accessible.
As networks become software-driven, they will reach across borders and behave more like the software market. Operator groups will globalize their production models, while standalone operators will expand their footprint into new geographical territories based on increasingly elastic infrastructure assets.
The biggest market impact will come from the different types of operators that will emerge, with traditional telecoms competing against asset-light players operating simple, customer-centric models.
“The digitalization of the telecoms industry has made possible a variety of strategic choices. Some will leverage synergies from globalized production models, while some will become exceptionally lean local players,” said Bela Virag, partner at Arthur D Little