Globally, the challenges presented by external factors to telecom sector have been increasing and telecom companies (telcos) are undertaking a rapid transformation in order to strengthen business. Changes in regulations, rapidly varying trends in consumer demand, newer technologies, spectrum crunch, and increasing focus digital content and data oriented services are forcing the companies to take up business restructuring and adoption of newer technologies to streamline business. Simplification, increasing consumer focus and harmonization are key for transformation. Although the path to such a transformation of telco business would need to change depending upon each network operators and service provider’s specific business needs and goals This transformation would not only need huge investments and increasing focus on next generation service deployments, but a primary shift in the telco business approach. The basis of every business transformation program is to define today the future investment targets in order to be fully ready to adopt and offer for the emerging business demands and newer services of tomorrow.
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Key drivers for telco transformation include decline in voice revenues, reducing loyalty and churn rate of subscribers, regulatory pressure and increasing spectrum issues. Key challenges in this market are proper network planning for burgeoning network sizes with low availability of spectrum. This issue is further complicated by emergence of multiple technologies including 2G and 3G (UMTS), HSPA and HSPA+, WiMAX, Wi-Fi, frequency division duplexing LTE (FDD LTE), time division duplexing LTE (TDD LTE), LTE advanced and wired broadband, among others. There is a need for co-existence of majority of these technologies together and this has created new challenges in network planning. Another key challenge is end-of-life cycle of network products and their life cycle management in order to enhance network efficiency and reliability. Opportunities in this market exist in terms of emerging new consumer segments such as banking and utilities sector which are increasing their network infrastructure in order to enhance their productivity. Enhancing data based services and increasing focus on emerging technologies such as machine-to machine (M2M) is another key opportunity in this market.
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Telco types in this market include fixed and mobile. Fixed type again includes residential and enterprise services. Mobile telco type can be segmented based on service into voice and data. Telco market can be further segmented based on consumer types into retail, wholesale and enterprise consumers. Retail consumers again include post-paid and pre-paid consumers. Various products and services in this market include VoIP, triple play, IPTV, cloud services and managed services, among others. Different end-user verticals in this market include energy, transport, healthcare, government, entertainment industry, and residential consumers, among others. Key players in this market include America Movil Group, AT&T Group, Bharti Airtel Group, China Mobile Communications Corp., China United Network Communications Group Co., Ltd., KPN N.V., MTN Group, Deutsche Telekom AG, NTT Docomo, Inc., SK Telecom Co., Ltd., SoftBank Mobile Corp., Sprint Corporation, Saudi Telecom Company, Telecom Italia Group, Telenor Group, Verizon Wireless, Telefonica, S.A., Vivendi SA, Vodafone Group Plc, Alcatel-Lucent, LM Ericsson, Huawei Technologies Co. Ltd., Nokia Solutions and Networks and ZTE Corp., among others.