Overwhelming OTT: Telcos’ growth strategy in a digital world

Telekommunikation

Overwhelming OTT: Telcos’ growth strategy in a digital world

As digital proliferates the telecommunications industry, incumbent telcos find themselves in the middle of a paradox. First, “thinking digital” is deeply embedded in their business models. They are, after all, not only providers of their own digital products and services but also enablers for other sectors, by providing the essential connectivity infrastructure for functioning and growing in the digital economy, which results in a growing demand for broadband access. Also, it is forecast that the number of digital customers will skyrocket globally, and intensity, with respect to time spent using digital platforms as a means of communicating, will increase over the next few years. At the same time, consumer behavior regarding traditional communication services is changing, and the total consumer spend on these services is expected to decline even while overall communications activity grows. Finally, as technological breakthroughs accelerate, more and more new digital natives are entering the core telco market with innovative business models and technologies, leaving many incumbents to wonder if they can keep up or if they will be displaced.