Telecom Services Industry Adopts New Business Models in Latin America to Spark Digital Transformation
Telecom Services Industry Adopts New Business Models in Latin America to Spark Digital
Transformation
The Latin American telecom services
industry will see new business models as participants strive to be part of the
on-going global digital transformation in the space. New business models are
emerging as big data for telcos, mobility and mobile money, innovation-enabled
monetization, software-defined networking and network functions virtualization
(SDN/NFV), e-commerce and online marketplaces, augmented reality (AR), carrier
Ethernet over wide-area network (WAN), and Internet of Things (IoT) gain ground
in the region. Telcos' structure must become more agile, flexible, and able to
leverage an interconnected ecosystem to adapt.
"Changing market dynamics
compel telcos to become customer-centric, investing in new products and
services, aiming to transform their cost base, and simplifying as well as
digitalizing complex business models, processes and systems," commented
Digital Transformation Research Manager Ignacio Perrone. "Going forward,
they must also be part of an ecosystem of partners or lose relevance."
Latin American Telecom Services
Industry Outlook, 2017, new research from Frost & Sullivan's Communication
Services Growth Partnership Service, unveils key trends in the Latin America
data communications, broadband and mobility markets for 2017, and how companies
can prepare to take full advantage of them.
To know more about Frost &
Sullivan's research and to sign up for our Growth Strategy Dialogue, a
complimentary one-hour interactive session with Frost & Sullivan's thought
leaders, please click here.
Key investment areas in the Latin
American telecom market include big data, mobile money to leverage the large
unbanked population, and mobile data and mobile enterprise applications, which
will replace mobile voice as growth drivers and compel mobile carriers to enter
new partnerships.
Evolving business models will have
to meet the demands of different end users and diversify telco revenue streams
by verticals. Some of the upcoming changes will include:
Increasing deployment of Ethernet
over WAN to enable enterprise IT transformation by reducing costs and
complexity. Use of SDN and NFV technologies to achieve the agility and
simplicity required to make enterprise WANs dynamic; SDN/NFV enable enterprise
WAN to handle video traffic efficiently. More e-commerce supported by mobile
apps, platforms, and big data and analytics that will enhance opportunities for
marketplace deliveries and solutions.
"Communications service
providers need to embrace digital transformation and reach out to capitalize on
the opportunities derived from new technologies, such as big data and AR. The risk
of not doing so is to become a sole provider of connectivity, and thus being
commoditized," said Perrone. "Companies like TIM, Telefónica and Oi
are moving fast to transform themselves, and competitors should look at these
examples and find their own way to make technology work to their advantage."
Miguel Sanchiz - misancosa@gmail.com