Global - Analysis - Industry - Transforming telco models - progress in 2004

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Last updated: 21 Jul 2004 Update History

Report Status: Archived

Report Pages: 11

Analyst: Kylie Wansink


For many years it has been my contention that in times to come IT will be the driving force behind the telco industry. If they are to maintain their relevance in the future, today’s telcos will have to become more like IBMs, HPs or Microsofts. In ten years’ time 90% of telco revenue will come from broadband-delivered (data) applications; only 10% will be voice-based (fixed and mobile). While the telco industry has been slow to move in this direction, things are gradually changing. Over the last few years the focus has been on applying new IT technologies for cost-cutting purposes, rather than on exploiting the new IT opportunities to increase revenues. In an effort to preserve the traditional mode of business, and to avoid cannibalisation, new developments were deferred. VoIP is now going to speed up this process. This report was archived in 2005.

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