Telco is a fast moving industry that has been at the forefront of digital trends for more than two decades. During a recent discussion with Talmix consultant Vahan, an expert in digital transformation in the telco sector, we talked about what the biggest trends in telco are now, and how they are affecting strategies.
Here are some insights from our conversation.
Networks - but not as we know them
Telco is in a critical position, the business as it is today is progressively dying as networks are commoditised. New players in the field are more akin to IT or tech than traditional telcos. And, where they used to compete with each other, they are now competing with companies like Microsoft and Amazon.
With the birth of cloud came a lot of new providers in the market. Where networks are concerned the new players are defining what a network is in different ways and they are emerging as something more like IT. Managing this shift requires a lot of HR and digital transformation across the companies.
The three acquisition trends impacting telcos
Within telcos that take an acquisitive approach to keeping up with shifts in the industry, there are three trends emerging:
- Niche technologies - Telcos are acquiring niche technologies that enable them to play in a new space. For instance, Orange are building a cyber security area competing with the likes of Accenture. They have been acquiring smaller companies with these capabilities to get there. Also within this theme there are venture capital firms that are being internally funded by telcos to be able to grasp the new ecosystem of start-ups.
- Telco & Media - The second type is related to the convergence of telecommunications and media. “It has been a long story, Vivendi tried 10 years ago but it was too early, but especially with Vivendi SFR, things are getting closer. But they need to have synergies to be able to survive, so there will clearly be further convergence between these two. This will enable telecommunications companies to be able to broadcast specific media, such as big football games. They need to do this to be able to sustain differentiation.” Vahan says.
- Consolidation - Thirdly, consolidation of the market is happening. Instead of having 4 players in the market, like in France, and many more in Europe, it is the big telcos at world level, such as Telefonica and Orange, who are surviving. They are doing this by bringing more and more countries within their scope. While this is a burgeoning trend now it may cause regulation problems in the future.
Talmix works with telcos to match them with the best independent talent in their industry, so they can tackle their biggest challenges. Whatever the future holds anything is possible when you have the right mix of talent.
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