Telecommunications

In developed economies, the telecommunications industry is becoming more competitive due to a number of factors. First, a wave of consolidation has occurred, creating a small number of tier-one carriers holding the majority of market share. Second, these carriers are offering multiple services across voice, data and media, giving customers more one-stop-shopping options. Third, customers are easily able to switch carriers due to consumer protection and competition regulations. Although these and other factors lead to a more competitive playing field, carriers and their suppliers can pursue several paths to continued growth and profitability.

Options for telecom carriers include:

  • Out-market the rest of the field. Future industry leaders will excel at customer service, yield management and innovative promotion, bringing about increased revenue from existing customers and poaching competitors' market share.
  • Invest in early-market categories. Develop products, services and infrastructure where market penetration is relatively low - examples include high-definition television, broadband wireless, and applications for multipurpose user devices.
  • Collaborate with supply chain partners. Provide value-added services to content and user device providers, leveraging converged networks and multiple media for distribution and cross-promotion.
  • Strive for operations and organizational excellence. Examples include improving cost efficiency by migrating appropriate service transactions to low cost online channels and fostering innovation, agility and productivity in the workforce.
  • Supplement profit growth with M&A. Build ownership stakes in both domestic and international markets, thereby gaining access to new sources of growth and diversifying risk.
  • Shed what doesn't fit. Employ a targeted divestment strategy to sell businesses and outsource operations that no longer align with the planned business strategy and operating model.

The challenge for telecom executives will lie in managing the array of growth levers for their specific context. We work with telecom firms to develop business strategy and achieve new levels of performance in marketing and operations areas. We also provide advisory services to support capital investment, mergers, acquisitions & divestment, and related corporate development initiatives.