The telecom industry landscape is changing fast under the influence of digital revolution. Over-the-top (OTT) providers pose a serious threat to the legacy revenue streams of telcos. The rise of OTT is forcing operators to think of new ways to survive in the cut-throat competition and live up to the expectation of enterprises, MNOs and MVNOs.
Let’s understand the paradigm shift to digitization by learning about the abandonment of traditional phone lines, the need for technologically advanced model for higher network capacity and rising popularity of VOIP termination services.
The Death of Traditional Telephony System
Major part of the digital disruption began with the abandonment of traditional phone lines. Telecom companies are dedicating their resources for developing VOIP and other futuristic communications technology. Wired communications are replaced with ‘VOIP’ that converts voice, video and data into small digital packets to be transmitted across fiber, Wi-Fi or cellular networks. Telecoms are showing confidence in this digital services opportunity.
The Digital Revolution
Digital revolution was the only answer to the challenges faced by telecom sector. The advent of digitization addressed several critical issues such as low pricing pressure, increasing network capacity and introducing innovation in telecom services. Companies opened their hands to the agility and cost efficiency offered by this digital model.
Digitization offered an opportunity to telcos in terms of rebuilding their market position, reinventing their business models and remodeling their voice and data services for customers. After learning about the advantages of digital business model, telcos shifted their focus and priority to digitization.
However, not all of them have been able to make a smooth transition from old legacy system to the reinvented model. Fierce competition in the digital landscape, continuous shrink of message and voice business and high use of social media communication channels are posing a serious threat to telco businesses. This sector is also vulnerable to rapid advancements in technology and changing customer needs. It is becoming mandatory for telcos to embrace a strategic and futuristic business model for survival and growth.
Striking a Balance between Complexities and Opportunities of Digitization
Renewal of legacy systems and processes is essential to survive in this digital landscape. However, this shift needs to be done considering a long-term strategy to make the most of the opportunities that digital disruption brings. The needs of digital transformation should be prioritized across service diversification, intelligent automation and dynamic customer needs. Companies need to overcome the challenges of digital transformation and ride in the next wave of network access technologies.
Telcos need to cope up with fast moving technology for experiencing improved organizational agility, structured development of digital services and preparing the network infrastructure roadmap. Seizing this digital opportunity is the key to make your telco business stronger and more profitable than before.
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