Researching for this blog I’ve encounter a lot of good quality material addressing the “OTT threat” and how Wireless Telecommunications companies should react in order to monetize efficiently and to avoid becoming a service pipe. But I think we’re reaching the point where the discussion is wearing out, and as we’ve seen in the past, the pace of technology evolution doesn’t slow down and even if the right business case is not ready or at the same level of this progression, eventually such business case emerges, as I commented in a previous blog entry for IMS (Read it here). So my intention is to highlight industry trends and future technologies that weather a Communication Service Provider (CSP) commanding head wants to recognize it or not, from my point of view, will impact current organizational structure and the way businesses are being conducted now.
Adopt the Pace of Technology: Her Secret Is Embrace
Adopt the pace of nature: her secret is patience –Ralph Waldo Emerson
Inspired by the quote of Mr. Emerson, I cannot help but think in the way wireless industry breakthroughs had been adopted by mass public, first generation of cellular communications was around ten years before digital second generation started to be implemented, six years later and phones started to be sold with all kinds of features, five years later and we witnessed the appearance of the smartphones. Now we face continuous data consumption growth forecasts, global governments consider broadband penetration as the main objective to feed national growth, and economic stimulus is being injected to the industry, telecommunications for developing countries is first in the list of national infrastructure development, wireless industry research continued despite world economic turmoil, and the competition is fiercer than ever among manufacturers, CSP and OTTs. So we have an industry were product life cycles are much shorter and service is migrating towards a user centric scenario, I’d like to mention the following trends and future technologies that will shape organizational infrastructure of CSP and how each one of them impose challenges on current company models, these being: M2M, Cognitive radio and Dynamic Spectrum Access, Heterogeneous Networks, Context Aware Networks, Quality Models for NGN networks, NFC and innovative short range technologies, and MBB (Mobile Broadband Adoption) and the new services of the Internet.
All My Life I’ve Been Taught Not To Die, But No One Ever Taught Me How To Change In Order To Grow Old
All my life I’ve been taught how to die, but no one ever taught me how to grow old–Billy Graham
Right now there are markets around the world experiencing fixed to mobile convergence (FMC) at various levels, but this was not a gracious move, resistance to change was experience and it was not till substitution figures started to be significant that something changed in the industry, usually these moves are slow but end up taking place. We have wireless companies that react against the so called “Dumb Pipe Syndrome” stating that they’ll become the most efficient pipe in the world, and others that take action building synergies with employees and content owners to focus away from the network and centering their attention in the user, whatever the case, the following trends and technologies will force CSP to do some changes:
Because Things Are the Way they Are, Things Will not Stay the Way they Are
Because things are the way they are, things will not stay the way they are–BertoltBrech
Image courtesy of Paola Buelvas Saad (firstname.lastname@example.org)
Current CSP organizational structures cannot face the challenges these trends and technologies will bring, I agree that cost will be higher and segmentation at various levels of the organizational structure will result as a consequence of technology adoption, next I’ll briefly highlight the main challenges of a regular CSP organization structure regarding the considered trends and technologies:
So this is in my opinion the panorama that a wireless service provider must face in the coming years, I left out a lot of functional areas of a company but the subject is broad and the evaluation of a new model it’s a topic that makes for a complete post of its own.
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