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Telecom Business Review | Monday, March 28, 2022
Legacy business patterns and risk aversion have left many telecom companies behind in the innovation race, but the partner ecosystem could help them catch up; with additional IT channel news.
FREMONT, CA: In digital transformation, telecom lags behind other industries. According to new research findings, however, telecom companies might utilize the ecosystem of partners to reverse this tendency.
On the route to delivering future technologies such as 5G, telecom businesses face rising expenses, regulatory duties, and difficulties. For example, inflationary pressure manifested itself when Verizon and T-Mobile sparred over pricing, with T-Mobile announcing that it would keep its wireless plan costs even while competitors raised theirs.
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However, partners may play a role in fostering innovation among telecom companies and enhancing their market position. The digital ecosystem and partnership area was ranked as the fourth top transformation priority by respondents in the telecom industry. Sixty-six percent of respondent organizations mentioned the digital ecosystem, slightly higher than the average across industries.
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Causes of lagging
Telecom companies typically struggle with the primary success factors of digital transformation. These include an integrated strategy, leadership commitment, access to high-caliber talent, an agile governance mentality, clear metrics, and a contemporary technology architecture.
Whether an industry sector achieves transformation depends on how effectively it leverages these variables. Telcos are, on average, less effective at using these success elements than, say, an IT service provider.
The established legacy business structures of telecom companies create an impediment. The telecom majors have made substantial investments in their networks, developing fixed-line solutions for which they may frequently anticipate a 70 percent market share.
Additionally, the complexity of fixed and mobile networking domains makes digital adoption more difficult. Network engineers are typically risk-averse, with network breakdowns constituting their primary worry. This is very comprehensible but does not contribute to the digital transition.
However, while some telecom businesses struggle with transformation, others are beginning to differentiate themselves. Approximately 20 percent of enterprises construct digital capabilities, attain revenue growth, and enhance customer experience.
Innovation via ecosystems
Moreover, digital giants are reorienting themselves toward innovation in the network core, around 5G services, or specific consumer categories such as healthcare and energy. These companies will progressively expose their APIs and collaborate within an ecosystem of partners.
Cloud platform providers, device manufacturers in IoT and augmented reality, and application providers in smart manufacturing and smart agriculture are possible ecosystem partners for telecom businesses. Channel partners also play an essential role. For instance, early this year, Thirdera, a ServiceNow partner, launched a service and order management offering for telecom customers based on the ServiceNow platform.
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