| Boston MA |
Ohio |
Milton Keynes |
|
| Strategy Analytics Inc |
Strategy Analytics Inc |
Strategy Analytics Ltd. |
Strategy Analytics |
| 199 Wells Avenue Suite 108 |
|
Bank House, 171 Midsummer Boulevard |
15, rue Reaumur |
| Newton MA |
|
Milton Keynes |
75003 Paris |
| MA 02459 |
|
MK9 1EB |
France |
| USA |
USA |
United Kingdom |
|
| Tel: +1 617 614 0700 |
Tel: +1 617 614 0716 |
Tel: +44 1908 423600 |
Tel: +33 1 53 40 99 50 |
Fax: +1 617 614 0799
Map/Get Directions |
Fax: +1 614 431 2343 |
Fax: +44 1908 423650
Map/Get Directions |
Fax: +33 1 53 40 99 59
Map/Get Directions |
| |
|
|
|
| Los Angeles |
San Francisco Bay Area |
London |
|
| Strategy Analytics Inc |
Strategy Analytics Inc |
Strategy Analytics : Teligen |
Strategy Analytics GmbH |
| 3342 Wimbleton Drive |
2610 Presidio Dr. |
Great West House, Great West Road |
Sebastiansplatz 5 |
| Los Alamitos |
Brentwood |
Brentford |
D-80331 Muenchen |
| CA 90720 |
CA 94513 |
Middlesex, TW8 9DF |
Germany |
| USA |
USA |
United Kingdom |
|
| Tel: +1 617 614 0719 |
Tel: +1 617 614 0732 |
Tel: +44 2081 850402 |
Tel: +49 89 51 51 35 0 |
| |
Fax: +1 925 308 7727 |
Fax: +44 2081 850419
Map/Get Directions |
Fax: +49 89 51 51 35 55
Map/Get Directions |
| |
|
|
|
| |
|
|
|
| Strategy Analytics Inc |
Strategy Analytics Inc |
Strategy Analytics Inc |
|
| Level 18 Yebisu Garden Place Tower |
16F, Gangnam Bldg., 1321-1 |
59-2-102 Beijing Suncity |
|
| 4-20-3 Ebisu Shibuya-ku |
Seocho-dong, Seocho-gu |
No. 30 Litang Road, Xiaotangshan |
|
| Tokyo 150-6018 |
Seoul, 137-070 |
Changping District, Beijing |
|
| Japan |
Korea |
P. R. China 102209 |
|
| Tel: +81-3-5789-5935 |
Tel: +82 2 310 9122 |
Tel: +86 10 8975 5246 |
|
| |
Fax: +82 2 757 7100 |
Fax: +86 10 8975 5246 |
|
| |
|
|
|
| |
|
|
|
|
PK & Wise |
Hinton Information Services |
|
|
6F J's Building |
6F-3 #103 Rueihu Street |
|
|
1487-4 Seeocho-dong Seocho-gu |
Neihu |
|
|
Seoul 137869 |
Taipei 11494 |
|
|
Korea |
Taiwan |
|
|
Tel: +82 2 597 8756 |
Tel: +886-2-27993110 ext. 319 |
|
|
Fax: +82 2 598 9444 |
Fax: +886-2-27995560 |
|
Future Network Operator Profits are at Serious Risk – Marketing Transformation Required
Network Technology Investments are Unlikely to Improve Performance
Boston, MA - December 16, 2013 – A recently completed analysis by Strategy Analytics of global telecom operators indicates that continued investment in technology infrastructure alone is not likely to improve the declining revenues and profitability facing the industry.
Strategy Analytics’ research on a sample of major network operators including Verizon, AT&T, NTT, Telefonica, China Telecom, Deutsche Telekom, France Telecom/Orange, and BT shows deteriorating financial performance since 2007 with total revenues flat and profitability in a declining trajectory. Convergence of broadband wireline and wireless businesses will further intensify revenue and profit pressures. This deteriorating performance may even be exacerbated by their massive investment in fiber technology and advanced 4G LTE wireless technology as operators compete in a ‘race to the bottom’.
The Strategy Analytics Wireless Operator Strategies (WOS) service report, “Improving Network Financial Performance – Transforming the Utility” examines the industry structure, microeconomic forces, and regulatory factors behind the over 50 percent decline in network operator profitability since the first half of the past decade. “With historical roots as public utilities in most countries, network operators continue to behave as network-centric providers of commodity services whose return on assets is guaranteed. Their financial performance is typical of undifferentiated commodity producers facing intensifying competition in maturing markets” noted the author Harvey Cohen, President of Strategy Analytics.
Drawing on Strategy Analytics’ work on wireless network cost and pricing forecasts, the report projects continued challenges to profitability even with ongoing investment. “Although we project significant cost improvements from investment in technologies like 4G LTE, Network Function Virtualization (NFV) and Software Defined Networking (SDN), the competitive environment will cause the price or effective revenue per gigabyte of data to fall even faster” said Sue Rudd, Director Service Provider Analysis, Wireless Networks and Platforms.
“To escape the commodity trap, network operators must become consumer-centric and focus on meeting specific functional needs as they compete for carefully targeted consumer segments. The ability to win the hearts, minds, and loyalties of specific consumer segments with innovative value propositions and meaningful brand differentiation will create significant new sources of profit and growth for those network operators who make this marketing transformation” added Harvey Cohen.
Through its new Consumer Insights Practice and Network Strategies Group, Strategy Analytics provides the process expertise and industry knowledge to explore strategic options for achieving this transformation.
Press release contact
|
|
Left User Strategy Analytics |
| Phone number:
+44 11 11 |
| Email:
Contact me |
© 2019 Strategy Analytics