Comms providers on the brink of decline

Evolution must happen if they are to deliver value in increasingly complex telecoms landscape, study says

Communications services providers are on the edge of a radical transformation, according to research from Informa.

Kris Szaniawski, principal analyst at Informa Telecoms and Media, said it has found that 85 per cent of operators are looking at the development of new revenue streams as their key objective – and by association, they expect their managed services providers to assist.

"While efficiency and cost controls are still identified as the most important issue for comms services providers, our research indicates that these organisations are on the brink of a complete change in strategic focus," he said.

This transformation will play out over the next five years, according to Informa.

Szaniawski said business agility, customer experience and new digital service developments would come to the fore. The industry as a whole will be under increasing pressure, and managed services are the "natural way" to implement the changes required.

Other drivers include the ongoing decline in non-data revenues, the rising complexity of the network and the technologies involved, and the increased necessity to focus on services.

"Managed services may not be new to the telecoms industry, but what has changed is how operators find value in these services," he said.

"The research shows that comms services providers no longer see managed services as simply a way to save money and create efficiencies."

Instead, he said, they expect MSPs to create value in their own right.

The research was released in conjunction with sponsor Huawei.