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Structurally speaking, on the other hand, telcos have few
concerns and did not mention any technological hurdles
regarding the development of new business models.
In particular, the regulatory environment is decisive to the
success or failure of new business models. This is also where
differences between geographical regions have the greatest
impact. In the United States, the main goal of regulating the
telco industry is to ensure that it generates adequate returns
on investment. In the Asia-Pacific region, by contrast, the
availability of high-performance connections (e.g. using fiber
optics) for everyone is an element of industrial policy and
services in the public’s interest.
And in Europe, regulation is directed more intensely at
ensuring competition and consumer protection – with the
attendant transparency obligations and clear caps on fees,
such as for international roaming. One thing that becomes
clear from these differences is the competitive edge that
Asian countries have in areas such as broadband speeds.
The ability that the telcos themselves have to influence such
matters is limited. However, they ought to make legislators
aware of their concerns regarding the unequal playing field
and push for fair competition with the OTTs.
There are different
content players entering
the market and they are
not investing in the
infrastructure.
Regulatory obligations
have to intervene and
make them pay for the
networks as well.
So, the question is not whether
there will be any new business
models. Instead, it is who will
succeed in implementing them
– the telcos or the OTTs?
To prevail in this competition, the telcos should increasingly
shift their focus to issues of flexibility within their organizations.
And even if the technology is perceived more as a
driver than as an impediment: Investments in the expansion
of fiber-optic networks and the 5G standard for cell phones
are crucial for the success of new business models. ||
In a European
comparison, fiber optic
coverage is lagging,
because [amongst
others] investments
have not always paid
off in the past.
Top executive,
Marketing & Strategy, Vodafone, Germany
(the comment refers to the German market)
Top executive,
Regulatory Commercial, du, UAE