Today's new telecoms business models

Innovation Observatory on behalf of CSG International
07 Jun 2011

New business models in telecoms will open up new revenue streams. They address competition in traditional retail and wholesale markets, and support a strategy of growth into new areas. In particular, they enable telcos to profit from consumers’ and businesses’ desire to consume digital content and to use online applications for which they are prepared to pay.

Telcos, who have options within the evolution to the two-sided business model paradigm, must equip themselves for continued innovation, rapid change and growth, and the ability to respond to the changing needs of customers, both upstream and downstream in the delivery chain.

Furthermore, they need to ensure that their processes and IT systems are capable of supporting their ambitions – in particular by helping them to deal efficiently with new types of partners with fast-evolving needs. If organisations cannot develop appropriate IT systems in-house, then they must look for a third party to help them. Those third parties need to have the following qualities:

  • An understanding of the evolving business models within telecoms, particularly, the relationships between different types of players.
  • Global experience: many content / app business models are global in ambition and involve dealing with players in many countries.
  • Expertise in systems that handle relationships with multiple parties, and which scale.

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