10
04
OVERCOME OBSTACLES,
SEIZE DRIVING FORCES
However, the development of such new business models is not
just a question of having the right ideas at the right time. The
parameters must be right, too.
Study participants said that high market regulation is their
greatest obstacle. Driving forces are trends in demand
as well as continuous development of technology.
IMPEDIMENTS TO THE DEVELOPMENT OF NEW BUSINESS MODELS
REGULATORY
STRUCTURAL
Extensive security requirements, especially with respect to
data privacy and consumer protection.
Less leeway for telcos compared with the OTTs due to
their different regulatory treatment and the dictate of
net neutrality. OTTs do not pay any fees for using the networks,
whereas the cost of investing in network expansion
is borne by the telcos.
In part, legislation is responsible for unattractive parameters/
lack of investment incentives for infrastructure projects.
Customer skepticism toward business models that are
based on the analysis of personal data.
Telcos have a disadvantage compared with the OTTs,
because operating the networks requires extensive
resources and limits the companies’ flexibility.
Much need for investments in the face of uncertain returns.
goetzpartners also sees the following structural impediments:
1. Consumers’ declining willingness to pay, especially for
communication services. According to numbers published
by TeleGeography, the average revenue per user (ARPU) in
wireless services (which includes all revenue of a mobile
network operator) in recent years has been dropping in
almost all industrialized countries. (For example, CAGR for
2011-2016 was -2% in Germany, -7% in France, and -2% in
the U.S.) 2)
2. Lack of openness toward new business models among
consumers/companies, especially in Central Europe.
3. Lack of risk capital for new business models and lack of an
appetite for risk.
4. Conflict with legacy systems, meaning there may be the
risk that a new business model could cannibalize one’s
current core business. Start-ups do not have this problem,
because they lack a core business.
2) Emerging markets: In India and Russia, this trend is just beginning to emerge. After several years of continuous decline, Brazil and China recorded gains (the former in 2015 and both countries
in 2016) compared with the relevant previous year.