Future of Business Telecom

The question is where is the telecom business headed over the next decade? Banks will turn out to be telephone companies and telecom companies will turn into banks.

Biometrics fingerprint technology will permit huge mobile phone payments. Numerous telecom companies are going to have to restructure their outsourcing and off-shoring strategies because of rapid wage inflation, which is wearing down cost differences, and making outsourcing less economically viable.

In the last 30 years, the invention of optical fibre, cellular radio and digital switching has modernized the telecom business. Telecom providers face unparalleled change as value continues to move away from traditional services as a result of technology and regulatory drivers.

The tactical question facing telecom businesses is, whether their capabilities in their current markets provide them with a benefit over current incumbents and new market competitors in media and entertainment, and IT service providers. Consistent competitive advantage will depend on the ability of telecom providers to line up their unique capabilities, specifically their strategic assets in fixed voice, broadband and mobile networks as well as customer relationships and insights.

Technological changes are allowing Skype, Google, Microsoft, Facebook and MySpace, to weaken the position of traditional providers and detain a significant share of incremental communication revenues. These providers attribute disruptive internet-based business models and a various set of communications tools and applications, arraying from instant messaging and e-mail to social networking. These changes challenge the customary telecom business model.

A mainstream of telecom executives consider that the alteration of the business model over the next five years will be decisive strategic priority in their quest for new sources of value. After a century of leading the mix, telecom executives expect to expand their revenue sources, shifting from an overdependence on “voice” to a wide range of services like convergent “voice and content” and advertising. Telecom executives are looking to achieve these objectives in a number of ways, including moving into neighbouring consumer markets of media and enterprise IT Services. They also identify the value of working together more extensively, with external partners for cost efficiencies, to minimize risk of technology obsolescence and improve business receptiveness and agility to make an effective telecom business model.

Technologies are most likely to drive the industry over the next five years, like nanotech and mesh networking that could change the complete cost structure of networks and hardware. Other major progress of existing technology is optical Ethernet and Wi-Fi. These technologies also have serious disruptive potential. UWB and Powerline also possess lot of potential for improvement to bring revolution in telecom business. Many of these are in early stage of R&D. Yet, we can truly assess, how these will impact the way operators construct networks and deliver price services. It is unpredictability that is the central challenge of telecommunications.

Distance will vanish in future prospectus of telecom business and only the agile who know how to pool resources will be the winners. The telecom business in 2012 will be extremely different from the one we know today. Building strong partnership skills, focusing on customer focused approach, embracing new advanced technology and talking into the language of your customers will enable the industry to thrive well in the future.

Author: Alex Tipu
Article Source: EzineArticles.com
Provided by: Latest trends in mobile phone

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