While mobile data traffic in particular is forecasted to increase by triple-digit rates over the next five years, service revenue can be expected to grow at a mid single-digit rate. At the same time significant investments in new technologies such as software-defined networks (SDN), network function virtualization (NFV) and fiber optical networks are required before resulting efficiencies may ease the operational cost burden.

Hence a look into the forecasts and the simple rule of three supports the thesis of the continuous price decline of the “Gigabyte”. Furthermore, initially the margin of each unit sold will be even more under pressure than the price.

In connection with the Internet of Things (IoT) and the fifth generation of mobile networks (5G), there have been discussions for years about applications such as Autonomous Driving, Smart Cities or Industry 4.0, and which role network operators can play in the ecosystem of such applications. Much of the “IoT pie” has already been served, and still the role of network operators beyond supplying connectivity is equally undefined as a coherent concept of earning money with IoT and generating higher returns than pure “connectivity” promises to achieve.

Against this background, we are asking the following questions:

  • Which options do telecommunications network operators already have to exploit new sources for revenue based on existing network technologies and with limited additional investment?
  • What, if network operators would do what other companies did, which have supplemented their business model in the past years with a digital, platform-based business model and established new ecosystems ahead of the telecommunications companies?
  • What, if they can emulate the digital pioneers and establish new ecosystems themselves – i.e., design ecosystems instead of being just a part of them?
  • What would such a scenario really look like?

BearingPoint has analyzed the current requirements, strategies and business models for more growth and mapped out a scenario which exemplifies a platform business model tailored to the private consumer market and offers the possibility for network operators to turn the tables on the new competition with Over-the-Top providers (OTTs):

A meta-platform for digital content and services. This is the offer of the OTT’s on one platform – all kinds of digital content bundled according to lifestyle sectors in an attractive combination with connectivity and additional services.

All digital services coming from one source; the benefits and interests of customers are consistently in the foreground; growth through digitalization. “EverDigital” – a vision of the future.

Be inspired and read our latest White Paper “From Network Operator to "Digital Lifestyle Provider".

Would you like more information?

If you want to get more information about this insight please get in touch with our experts who would be pleased to hear from you.

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