09
3.2. ENABLER ROLE AND PROMISING PARTNERSHIPS
Telecommunications companies are emphasizing their role as
important enablers of digitalization. The expansion of broadband
for the purpose of handling growing data volumes and
ensuring network security are prerequisites for developing the
digital economy. This is where new revenue streams and innovative
business models from which the telcos can – and will
– profit are being created. In turn, they will be able to support
corporate customers and partners with their products and
services in connection with digitalization. Digitalization will
also permanently lower costs in the future: for customers as
well as for the telcos themselves.
56% of the interviewees
also believe that OTTs offer
opportunities for the future –
despite jeopardizing
traditional revenue streams.
19% perceive the OTTs as both an opportunity and a risk. And
even those 25% of study participants according to whom OTTs
do nothing but put pressure on their business outlook limit
this view to B2C and content. In the final analysis, they too
see alliances with OTTs as an opportunity to gain significant
advantages in the battle for new cell phone customers.
To tap into this potential, 80% of the interviewees stated that
their companies have already forged alliances with OTTs or are
planning to do so:
MAJORITY OF TELCOS COOPERATE WITH OTTs
“Are you at the moment cooperating or could
you imagine cooperating with an OTT?”
Yes
No
20%
80%
(N=15)
Two reasons are key to promoting alliances with the OTTs:
One, the telcos benefit from the OTTs’ differentiation
potential and attractiveness in connection with improved
customer satisfaction and the battle for new customers. Two,
these factors drive the growing demand by customers for
larger data allowances, more bandwidth, and faster connection
speeds.
But many telcos still lack a genuine strategy for how to deal
with OTTs. Two of the study participants got to the heart of
the matter. They believe telcos must collaborate with OTTs,
because the latter’s clout in the market virtually compels
the providers to act. Yet others have a clear goal. It's all
about working with specialists to open up markets together:
“Netflix is partnering with our company on new streaming
segments. The same is happening in the music industry
with Spotify and Apple Music.”
On the continuum between competition and collaboration
with OTTs, the telecommunications companies have three
options for developing viable models for the future:
1
2
3
Internal development and provision of OTT services
Development and provision of OTT services
through affiliates
Cooperation with providers of existing OTT services
Whether by collaborating
with OTTs or by other means:
Companies in the global telco
industry can't avoid the fact
that they must digitalize their
business models and develop
new ones no later than by
2020 if they want to prevail
in the market.
If they do this, they are more likely to become more significant
rather than less – in part because of their role as enablers of
entire economies’ increasing digitalization. ||