2017电信业趋势（英文版）_12页

2017 Telecommunications Trends Summary

Core Content

The 2017 Telecommunications Trends report by PwC outlines the critical challenges and opportunities facing the telecom industry as it approaches a significant tipping point. The report emphasizes the need for telecom companies to modernize their operations and redefine their strategic identity to remain competitive in a rapidly evolving market.

Main Trends and Key Points

1. Tightening Competition

• Commoditization of Services: Traditional telecom services have become commoditized, leading to declining revenue and margins.
• OTT Dominance: Over-the-top (OTT) players like WhatsApp, Viber, and Skype are dominating core communication services, leading to significant revenue drops for telecom carriers.
• Revenue Decline: Telecom companies are experiencing declines in SMS (30%), international voice (20%), and roaming (15%) revenues.
• Consolidation Lag: The industry's slow pace of consolidation has intensified competition, contributing to the decline in average revenue per user (ARPU).

2. Modernizing Operations

• Operational Frugality: Many telecom companies have been too frugal, leading to outdated operational structures.
• Simplification Strategy:
  • Focus on reducing complexity in commercial offerings and customer-facing activities.
  • Move toward a limited portfolio of essential digital services.
  • Transition to cloud-based infrastructure to support future growth.
• Organizational Changes:
  • Flatten hierarchies and embrace a culture of innovation.
  • Consider appointing a Chief Digital Officer to lead digitization efforts.

3. Digitization

• Integrated Customer Experience: Unify customer contact and sales channels into a single digital platform.
• Data Analytics: Use data to segment customers and maximize value.
• Digital Services: Shift customer communications toward messaging systems and mobile apps, minimizing human intervention.

4. Network Upgrades

• Network Speed and Throughput: Customers demand faster and more reliable networks, making network speed a key differentiator.
• Investments in Infrastructure: Prioritize investments in fiber, 5G, and other advanced technologies to support new monetization opportunities.
• Competitive Edge: Enhanced networks can help telecom companies reclaim technological advantage from OTT providers.

5. Redefining Strategic Identity

• Strategic Focus: Companies must choose a core strategic identity that reflects their unique strengths and customer value.
• Options for Identity:
  • Core Connectivity: Focus on basic wireless services at competitive prices (e.g., Free Mobile).
  • Adjacent Verticals: Offer branded content, financial services, lifestyle services, and e-commerce over their networks.
  • Connectivity-Driven Revenue: Explore machine-to-machine (M2M), telematics, IoT, and smart city services.

6. The Allure of M&A

• Strategic Acquisitions: M&A is a key strategy for entering new markets and enhancing capabilities.
• 2016 M&A Activity: Telecom companies spent $224 billion on M&A, a 137% increase from the previous year.
• Examples:
  • Vodafone acquired Kabel Deutschland to offer a quadruple play.
  • Verizon acquired XO Communications to strengthen its position in SME markets.
  • AT&T's pending acquisition of Time Warner aims to expand content offerings.
  • Verizon's acquisition of AOL provides access to automated advertising technology.

Key Recommendations

• Modernization: Prioritize operational modernization to build a "right to win" in new markets.
• Strategic Identity: Define a clear and unique value proposition aligned with customer needs and company capabilities.
• Digitization: Invest in digital transformation to enhance customer experience and operational efficiency.
• Network Infrastructure: Upgrade networks to support high-speed connectivity and new applications.
• M&A Strategy: Use acquisitions to fill capability gaps and expand into adjacent markets.

Conclusion

The telecom industry is at a critical juncture, with traditional models under threat from digital disruption. Companies must act decisively to modernize their operations, embrace digitization, and redefine their strategic identity. M&A can be a powerful tool in this transformation, but it requires careful planning and execution. With the right strategy and execution, telecom companies can not only survive but thrive in the new digital landscape.