Keeping Pace with User Needs: Five Trends for Telco Providers

The days of status quo service are long over. Today, network operates need to stay innovative to adequate meet user expectations when it comes to services and quality.  As consumers and end-users, alike, increasingly crave high-bandwidth content and better services, service providers need to evolve their strategy and change their business models to meet those needs.

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And that means new opportunities for network providers. The so-called \"winners\" are those that know how to quickly adapt to these demands and change. Savvy service provider knows it takes more than just recognize trends and changes. It also requires the need for companies to update their business models.

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With consumer demand and expectations intensifying and data, multimedia, VoIP and wireless

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voice traffic volumes leaping upward, \"networks must evolve to deliver the kinds of services and

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applications users expect,\" Alcatel-Lucent said in a white paper. \"Service providers must invest in that evolution in ways that not only address the needs of the moment but also position them competitively and technologically for the long term; and service providers must shave costs out of their operations today, modifying their business models and achieving new efficiencies.\"

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According to AGI Research, there are a number of trends that are impacting the telco industry that will likely impact how service providers react to these changing models. Here are five in detail:

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  Startups will lead innovation and technology development: This year, AGI predicts that skilled employees will leave large companies to join startups to foster their own progressive ideas. That, in turn, will lead to new technologies.
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Wireless data will grow and challenge the flat-rate data models. With the entrance of new devices like the iPhone and its counterparts, network providers will see a big increase in data traffic likely from users' desire for more bandwidth. And as the convergence from TDM to IP continues, this will force service providers to handle price pressures and dwindling budgets, AGI Research said.

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New devices will grow IP connections. With the rising popularity of such devices as netbook, and smartphones, new \"objects\" will also be connected using the cloud. So the end result will be that every transaction will be tracked and have monetary value.

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Telecom pricing practices are changing up the market. Competitive pricing and discounting will continue to erode in 2010. Vendors will have become better competitive. New technology won't be enough to fight pricing pressures. So telecom vendors need to offer innovative features to meet customers' needs.

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Service providers' business models will become more aggressive. As service providers look to deliver better value, part of the strategy will entail broadening options. AGI Research advises people to service providers to map applications such as IPTV, mobile offering to services and technology to increase boost their profitability and longevity.

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