Industry Trends

Accelerating the race to value

Targeting blue oceans for growth

After enduring several years of sluggish growth, telecom companies continue to be shaken up as digitization reshapes the industry landscape.

New customer expectations for ubiquitous mobile and digital services necessitate ever-accelerating growth in connectivity and bandwidth, requiring massive investments in fixed and 4G/VoLTE (Voice over LTE) bandwidth, with 5G on the horizon.

At the same time, the explosion of connected devices, over-the-top (OTT) services (chat, video-on-demand) and new business models is weakening the industry’s hold on consumers. This, in turn, is reducing core voice and messaging businesses and threatening incumbents’ competitive boundaries, EBITDA and cash flow margins.

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“To succeed in the coming years, Telcos will have to meet an increasing competitive pressure on core business while finding blue ocean growth. This may be challenging. This will also open up formidable opportunities.”

Oliver Kleinhenz

Senior Vice President, Telecom, Atos

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