Where telecoms can make investment to make next trillion

Telecoms and innovation
Telecom network operators such as AT&T, Deutsche Telekom, Millicom, Orange, SingTel, Telefonica, Verizon Wireless and Vodafone have developed multi-pronged strategy to innovation to bring next trillion.

Incidentally, Indian telecom operators such as Bharti Airtel, Idea Cellular, Reliance Communications, Telenor, BSNL, etc. are not part of the report. The Strategy Analytics report clearly points out lack of innovation happening in the Indian telecom space. When the global telecom market moves to smart cities and IoT, India stopped innovation after finding some business from ring back tones.

Strategy Analytics says telecom operator’s focus on innovation will assist them to unlock the next $1 trillion.
The telecom report predicts that telecom network operators will be making investment in areas such as mobile broadband services, Internet of Things (IoT) and smart cities that jointly represent trillions in value.

During 2016-2020, telecom operators can create $0.1 trillion from wearables, $4.5 trillion from wireless services, $0.5 trillion from smart homes, $1.2 trillion from smart cities, $1.2 trillion from IoT, $0.3 trillion from mobile advertising and $3.4 trillion from mobile payment. But they need to invest more in innovation.

Strategy Analytics did not mention about the size of the innovation related investments by telecoms to bring the next trillion.

Out of these several key areas for global telecom network operators, Indian telecoms started to focus on mobile payment, mobile advertising and IoT. 5G mobile technologies that will drive IoT business is yet to become a focus area for Indian companies.

These operators recognize the importance of engaging with an ecosystem in an open, collaborative environment to drive innovation across many areas, such as network technologies, consumer service and enterprise processes that utilize mobile access.

The report said the 5G roadmap creates opportunities for innovation across multiple domains, with an emphasis on generating revenues through new service offerings that build on network innovation and collaborative ecosystem involvement.

Innovation is an important element for the survival of telecom operators that face competition from over-the-top (OTT) companies. Telecom network operators need to step up their focus areas to find value in the digital mobile value chain.

“Telecom operators should embrace innovation. No single innovation will generate trillions in return, but through multiple innovation approaches mobile operators have the opportunity to tap into market,” said Phil Kendall, executive director, Wireless Operator Strategies, Strategy Analytics, in a statement.

Hope telecom network operators will have chief innovation officers as well. Most of these telecoms are currently depending on telecom network vendors such as Alcatel-Lucent, Ericsson, Huawei, ZTE, Nokia Networks for innovation on networks.

Baburajan K
[email protected]