While today\u2019s digital landscape presents tremendous opportunity, the numbers conversely show that the telco industry\u2019s contribution to national GDP has actually fallen from 2% in FY2009 to just 1.2% this year; with increasing debt levels from the major players here posing an additional substantial challenge.Year-on- year, the sector\u2019s revenue has dropped 11.7% with Thomson Reuters StarMine forecasting a further earnings decrease by 70% over the next 12 months. When compared to the global telecom sector, these falling figures clear position India far below its peers.<\/p>

But from challenge comes opportunity \u2013 and we are thus at a crucial cross-roads, where the way we choose to tackle some of these deep-seated infrastructural issues through fundamental changes will have significant impact for the industry in the long-term as a whole.<\/p>

The Zero-Sum Game of Pricing Wars<\/strong><\/p>

It is our strong belief that in this cut-throat industry, superior service quality should always be the long-term primary focus, as opposed to engaging in a detrimental race-to- the-bottom centered on price wars.<\/p>

While players such as Reliance Jio have slashed their tariffs and thus dented revenues for the entire industry, such disruptive pricing (which is not a new tactic) is also never an infinitely sustainable one. Providers should instead focus on building and strengthening their infrastructure alongside increasing the level of resources devoted towards innovation across their services and offerings \u2013 in order to provide the very best benefits to their customers.<\/p>

Only by doing so, can Telcos truly provide the very best benefits and service experience to their customers in today\u2019s digital landscape \u2013 especially as the industry undergoes drastic changes, with consumer demand in-turn shifting from voice-driven to data-driven technologies. Yes, expansion of 4G coverage and tariffs across the Indian peninsular is important, but not at the expense of networking transformation which should remain key.<\/p>

Especially with the rapid digitization of the Indian economy, top priorities should include the evolution of the network from isolated domain-specific layers into a singular, flat and smart network that can cater for multiple services simultaneously; alongside other highly-recommended (and needed) upgrades across areas such as the architecture of the network edge, datacenter connectivity, as well as IP-centric technology.<\/p>

A Focus on Future-Proof Technologies<\/strong><\/p>

Numerous recent initiatives by the Government has also created a strong appetite for serviceconsumption, such as in the shift to a \u2018one country one tax\u2019 vision with GST, alongside the move towards a pure-online tax submission process.<\/p>

Such guidance in terms of structure and processes from the Government sector will without doubt help further shift consumer mindsets towards an all-digital future, which can only benefit telecom providers handsomely considering they are the ones providing the infrastructure for this 24\/7 digital access.<\/p>

This nationwide shift has resulted in significant upgrades to networking infrastructure, as telcos re-think and re-strategize their core content offerings, in order to create marketplaces primed for shared cloud services. More than ever now, service providers now have even greater incentive to focus on building new revenue streams for themselves and to differentiate themselves in the market by offering alternative business models \u2013 a start contrast to the traditional models of focusing solely on expansion of coverage, or the zero-sum tariff wars as previously mentioned.<\/p>

To achieve this, telcos should aim their efforts towards investing in technologies that automate networks and offer visibility into agile decision making at the infrastructural level. By adapting to and implementing the latest technologies across areas such as Software-Defined Networking (SDN) & Networking Function Virtualization (NFV), Data Center Interconnect (DCI), Software-Defined Wide Area Networks (SD-WAN) and Packet Optics \u2013 telcos can better future-proof their conventional revenue streams, and add value along every step of the way for the end user.<\/p>

While the end goal is always going to be revenue enhancements, the indirect benefits to the four critical layers of Management, Services, Network and Elements are always welcome. Behind the scenes, there are countless ways to achieve this. Investments towards enhancing fixed broadband penetration and the consolidation of the cable market can also help. As the country progresses, new models of IT that have arisen can also be developed here as a consequence. With demand for localized content also higher than ever before, replicating international models of hosting bandwidth will also come to the fore.<\/p>

Looking Forward<\/strong><\/p>

Telecom companies in India need to think along the lines of consolidation and business integration, such as by allowing multiple network domains to merge into one flat IP network for better connectivity. Such transformations will not only reduce their net spend, but also increase their critical focus on operational
expenses as well.<\/p>

To us, it goes without saying that companies need to be driven to improve their performance and scale to consistently value-add to the customer experience, build long-term brand loyalty, and ultimately remain at the top of the game in the digitally-charged world for years to come.<\/p>","blog_img":"","posted_date":"2017-10-06 17:56:32","modified_date":"2017-10-07 12:55:57","featured":"0","status":"Y","seo_title":"Seeking success in an age of disruption & consolidation","seo_url":"seeking-success-in-an-age-of-disruption-consolidation","url":"\/\/www.iser-br.com\/tele-talk\/seeking-success-in-an-age-of-disruption-consolidation\/2641","url_seo":"seeking-success-in-an-age-of-disruption-consolidation"},img_object:["","retail_files/pic_author_1424241542_temp.png"],fromNewsletter:"",newsletterDate:"",ajaxParams:{action:"get_more_blogs"},pageTrackingKey:"Blog",author_list:"Pankaj Kitchlu",complete_cat_name:"Blogs"});" data-jsinvoker_init="_override_history_url = "//www.iser-br.com/tele-talk/seeking-success-in-an-age-of-disruption-consolidation/2641";">