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  Future of industries - Telecom Industry  
     
     
 
Technology industry
 
Shining Perspective
Digital language is making the world very dangerously homogeneous
The digital expression of this service either through software or hardware is very generic.
It can go to any telephone operator
Being an operator, you may or may not have the first mover advantage
This service can be branded the way we have branded the generic bacteria bifidus actif to create
Activia of Danone which is riding in leadership and continuous growth across the world since the
last 20 years
 
 
The Year has begun with MNP (Mobile number portability) being launched. This will mark shift from volume based business to relationship based.
 
Technology focus will be integration of different content types and its delivery in mobile. Regional content, mobile internet, location based services, mobile T.V and M-Commerce will emerge as applications of the future in 2011. Enterprises will explore the VAS market to increase stickiness of the subscriber. 3G will play crucial role in shaping
the wireless industry. Media convergence will be another service provided by telecom providers.
 
Growth will primarily come from Asia pacific, African, Latin American and Caribbean markets.
 
Industry will witness huge investment in up gradation of existing networks. Large enterprises will spend more on wireless technologies rather than in wired ones.
 
The year will see global expansion of telecom companies from emerging markets into Europe and USA.
 
Industry will see co-operation and collaboration on infrastructure front as more and more companies start taking infrastructure sharing option more seriously.
 
 
  Industry Growth Drivers
  Economic growth
  Emerging market
  Innovation
  Usage growth in matured and emerging market
  Value added service: Web based applications have greater user adoption such as multimedia content
and internet services
  3G Equipment as a growth driver
  Strong growth in wireless service: Adoption of wireless broadband technologies such as WiMax will also
be a strong driver of the telecom equipment market
 
  Industry Competitive Scenario
  Competition is fierce, with international suppliers competing with each other and smaller local suppliers
  International companies are competing aggressively for regional business on price, localization and expertise
  Growing Preference for the larger supplier over smaller local suppliers or small supplier
  Increasing Competition leading to shift towards services and customer
  Greater emphasis on Cost and Service due to Non- differentiated products, slower growth, and greater
technological maturity
  Alignment of value proposition to new demand pattern
  Declining operator’s tariffs
  Product & service innovation
 
  Industry Complexity
  Govt. Regulation
  Entry barrier is high: High cost of capital
  Managing Profitability is difficult due to declining margin
  Managing profitability due to declining margin/ARPU
  Maintaining service differentiation
  Vendor management
  Maintaining cost competency
  Managing complexity of migrating to next generation technology
  Partnering Risks among carrier and vendor
   
  Industry Pain Areas
  Government Regulations
  Justifiable ROI on Technology
  Declining Margins/ARPU
  Customer churn/retention
  Technological obsolesce
  High cost of technology upgradation
  Unrealistic expectation from Merger & Acquisition (M&A)
  High R&D expenses
  Service commoditization
  Changing Vendor-Carrier Relationships: Carriers are reducing the number of vendors
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Jacques Vincent
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& COO, Danone
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Wipro
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