Telecommunications, Information technology, Media & Electronics (TIME)

The time for transformation has come for the companies operating in TIME industries. Digital transformation has huge potential, but has to be properly approached to become a growth opportunity rather than a threat to struggle with.

The TIME for transformation: reconfiguring to create value  

The moment for a pervading digital transformation for telecommunication and media companies has finally come. It’s not a matter of opinions anymore; fixed, mobile and media players necessarily have to fit into a new environment that it is changing deeply toward the convergence of communications.

The digitization process has huge potential, but has to be properly approached to become a growth opportunity rather than a threat to struggle with: improving the customer experience and expanding the customer digital life, everywhere, appear to be one of the main challenges to creating value in the new digital world. Industry digitalization global revenues +13% up to 2026 (from 0.9 to 3.3 million US dollars).

Media Content, premium rights & video content production are assuming a growing strategic role in data-services valorization and should represent a critical area of competition among telecommunication operators, over-the-top (OTT) service providers and broadcasters. TV & Video global market should grow at +3.6% CAGR to 2020, with online distributor and content owners retaining the larger part.

Playing an extended role in the Internet of Things (IoT) development will also be crucial for telecommunication operators to retain more value in operating services on a continuous basis. However, close to 40% of the total value potential of the IoT is dependent on interoperability, making new business models increasingly critical.

Digitization is also fostering cross-industry interaction: telecommunication operators should be the landmarks in enabling other industries along their digitization journeys. New high-speed networks and next-generation quality of services features are increasingly becoming the main drivers for digital growth, but still the business equation is not yet solved to unlock wide roll-out of fiber-to-the-premise, DOCSIS 3.1 and upcoming 5G development.

In the face of rapid technology innovations, shifts in the playing field and competitive environment, new business models, and digitalization of industries and society, telco suppliers must radically rethink their business models to compete, or even stay in the game. One important lever for these players is 5G, which holds potential for both our economy and society and, in particular, has the potential to reshape many industries by enabling and accelerating digital transformation.

The technology allows for dynamic configuration of networks to address different customer demands, support massive increases in data volumes, and provide highly resilient, secure and low-latency communications. If suppliers rise to the game, 5G technology could support vertical industries in adapting to a changing economic and social environment, helping with their respective challenges and needs. Whether it is about helping the automotive sector reduce traffic accidents, increasing efficiency in the healthcare sector, or enhancing productivity in the agricultural sector, the continued evolution of mobile technology could play an important role in addressing these challenges, as well as delivering a variety of social benefits and promoting economic growth.

A so-evolving dynamic requires companies to review their business models, maximize their operational efficiency, evaluate growing opportunities for partnerships and consolidations across the value chain, and consider new businesses diversification.