The advancement of direct and indirect competition in the Telecommunications market impacted revenue growth rates and profitability margin of traditional operators worldwide. In 2015 compared to 2014, 7 of 9 major European telcos, many of which have presence in Latin America, had flat or declining revenue.
- Self-service: Examples of cases of Oi and Telefonica Vivo in this study indicate alternative 100% digital channels to service. In Brazil, Oi, Vivo and TIM have launched applications to begin the journey, but still need to improve the experience.
- Agile IT: in order to achieve the digital transformation, operator´s physical, virtual and logical resources need to be managed. Traditional network and Network Function Virtualization (NFV) need orchestration regarding Business Support Systems (BSS) and Operational Support Systems (OSS). Moreover, telco´s physical and virtual multivendor elements need interoperability. Vimpelcom stands out in the market with the investment of US$ 1 billion to redesign its portfolio. Latin America operators are still starting the journey, but structure simplification and NFV/Software-Defined Networking (SDN) are on the agenda of the largest operators.
- Verticals solutions: CSPs are also seeking opportunities to provide new services and business solutions for verticals. The challenge is to diversify a telecommunications service provider for several other services, where Vodafone and AT&T are featured globally. In Latin America who stands out most is Telefonica.
(Source: Frost & Sullivan)