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Points of View
More Telecom Research
Telcos: Co-Innovate to Create and Replenish Evaporating Revenue
Telcos must co-innovate with partners to create new data-driven revenue streams. The global telecommunications sector is struggling to define its next chapter in terms of where new revenue streams will come from to replace declining core communications revenues. It’s an ironic problem, as this sector is powering certain facets of digital transformation but has had trouble picking the best opportunities to monetize, beyond provision of underlying connectivity. As telecommunications firms actively work to shape their future, they are working closely with IT and business process service providers around many emerging areas of technology, such as intelligent automation and the Internet of Things (IoT). However, much of the focus has been on cost optimization efforts rather than anything tied to revenue generation. HfS believes that this is a missed opportunity on both sides of the relationship. This Point of View has a look at major telecommunications industry and global services market trends, with an eye towards encouraging co-innovation. Please refer to Exhibit 1.
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