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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 .