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Inside Telecommunications: Foreword - EY - Global


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Operators and their counterparts across TMT are eyeing new growth opportunities with more fervour than ever.

It has been an eventful three months for the industry. LTE launches are arriving thick and fast while the range of transactions announced during the quarter show an industry redefining itself in terms of both operational efficiencies and product scope.

Operators and their counterparts across TMT are eyeing new growth opportunities with more fervour than ever. In the three months to June, a number of key acquisitions show that established players have enterprise customers and industry vertical opportunities at the forefront of their thinking.

As operators seek new sources of growth themselves, partnerships designed to widen addressable markets are also becoming vital. In early July, six leading telcos formed a machine-to-machine (M2M) alliance, with a view to using a centralized management platform via Jasper Wireless to provide seamless solutions to multi-national corporations across different regions.

Yet partnerships in other parts of the industry remain challenging.  With the UK’s operator payments joint venture still under regulatory scrutiny, coupled with Dutch players’ decision to abandon their mobile money alliance, it is clear that many such tie-ups are prone to set-backs.

At the same time, operators are attempting to adapt to a market where consumers are aggregating more and more devices. A recent report from UK regulator Ofcom shows that the average UK household has three different devices capable of being connected to the internet.

In this light, mobile service providers are reformulating their tariffs to cater for household needs. In June, US operator Verizon announced shared data plans for families, which allows extra devices and data buckets to be added to a single plan. This also signals a strategy to move beyond unlimited data packages since existing customers will have to drop all-you-can-eat plans if they migrate to the tariff.

Adrian Baschnonga

Adrian Baschnonga
Senior Global Telecommunications Analyst

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