The course for transformation, despite the crisis

The course for transformation, despite the crisis

In 2016, the telecommunications market around the world continues to show signs of saturation, and its players are looking for new niches for further growth. One of the main drivers is the provision of integrated services at the junction of telecom and IT. Quite often recently the term “digital transformation of the telecom industry” is mentioned. The essence of this transformation is that the model of business operators, built on the provision of traditional communication, becomes unprofitable, and requires the transition to new services, relying on a modernized telecom infrastructure. These new services include the provision of video content, banking services, services based on the processing of large amounts of accumulated data.

On the other hand, the cheapening and development of telecom infrastructure is impossible without its moving to cloud, without the gradual replacement of expensive hardware implementation of network functions for their software implementation based on cheaper standard server equipment.

Even in times of crisis, operators are ready to invest in new technologies that allow expanding the range of services provided. This is confirmed by the observations of integrators, so, according to Andrei Borodin, the companies are ready to spend money on projects that help to generate additional revenue and develop the existing network of services: IMS, MVNE, IoE / IW, large data, cloud solutions, M2M.

According to the experts of telecommunications solutions, One of the key incentives for the development of the telecom market is the need to modernize technical equipment and the permanent expansion of communication networks to provide consumers with new services and services. For example, in the last two years, operators are actively developing fourth generation 4G networks that provide high speeds for mobile Internet access, and are also preparing to launch 5G networks. At the same time, representatives of the telecom market not only actively build up communication networks, but also think about the qualitative transformation of their infrastructure in order to optimize operating costs. Today, operators are increasingly looking to technologies such as SDN and NFV, and implement or evaluate the capabilities of the “pilots” with their application. These technologies provide automation of infrastructure management processes and provision of services to subscribers, which allows operators to reduce transaction costs and increase business efficiency.

operators are increasingly showing interest in solutions for the Internet of things. According to MTS estimates, the volume of the M2M / IW market in the first half of 2016 reached p300 billion, increasing from 225 billion in the first half of 2015. What’s significant, the market growth in money terms is not due to the simple access to telematics SIM cards to the networks of operators, which occupies only 1% of the revenue share of operators in the M2M / IW market, but due to the increased demand for large data technologies.

There is no doubt that the area of inter-machine interaction is developing: The main mobile communication providers are recording the growth of M2M traffic in the corporate segment, especially among transport companies actively using navigation systems. The demand for solutions in the field of large data and cloud services is growing, which will make it possible to scale these solutions as the generated data volumes grow.

Nobody denies the need for digital transformation, but in order to stand out from the competition and build new unique services, investments are needed. In the world, there are examples of successful projects and the implementation of the complex of the above technologies. The most consistent in the way of digital transformation is the American telecommunications company AT & T. There are examples where the separation from competitors was realized on the basis of separate more narrowly focused strategies. The experience of Sichuan Telecom, a company that has taken the course to build high-quality video as a basic service, is based on the modernization of its networks, focusing on IPTV to provide its services against competitors. Having invested in the deployment of a fiber-optic network for online viewing of 4K video, modernization of sales channels, provision of 4K content, the company managed to increase the number of subscribers to video services almost tenfold in three years – from 0.72 million to 6.77 million, the largest IPTV operator in the world with 8.55 million IPTV subscribers.

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Posted on: September 12, 2017Ana Nichols