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Industry Telecommunications
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E-SPIN
Tuesday, 02 June 2020 / Published in Global Themes and Feature Topics, Telecommunications

Telcos challenge from merge to surge

Telcos challenge from merge to surge, as telcos industry is going through a transformational phases of merge or consolidate resources with the 5G network trends and digital transformation, where most of the mobile calls average per user continue to fall in the historically new records, and the bright future for the 5G network bring in endless of new internet based products and services potentials, and at the same time for digital transformation opportunity for bold leaders who come up with the new innovative ideas and market disruptive product transforming the current landscape by moving across existing comfortable zone we define as telco into other industry, from providing mobile payment and financing that use to be banking and finance industry core product and services, to offer trade up, trade in for the various smartphone and related products for existing customer based.

The lines between telecom companies and technology vendors are blurring, from being telco, internet service provider (ISP) or anything-over-mobile-provider, as the term I like to use, from provide banking, e-wallet, location tracking, insurance, and anything that be supply thought the same telco, include continue supply new smartphone for using. It is also an advertising platform and financing target for existing subscribers. As more services they offer, the more detail of subscribers they will have, and provide even more personalised and well defined and targeted new products and services.

As the world moves toward 5G network infrastructure, whether they are providing it or riding on top of another telco and sharing the cost basis, what matters most is who owns subscribers. Despite now under the US-China trade war, and both end try to make their standard, we are still seeing mass-market of 5G coverage is starting to roll out, despite the COVID-19 virus outbreak making the impact in the global scale, and it takes time to come. But it just matter of time, 5G network generation is coming and a new battlefield based on who owns 5G network is started.

This is why we will continue to see mergers to consolidation resources, to scale and to compete and in a higher capital intensive manner.

We saw retail, airline, hotel, travel and food and beverage industries fall, due to the virus outbreak impact. Despite it not doing the same for telcos, it also had an impact to some extent for telcos, as mobile device manufacturers global shipping fell, as mass consumer confidence to spend index kept falling at this period of time. Who is offering 5G at this point at higher rate maybe in questions for the mass adoption subscriber is there or not, else is just too costly to invest and it becomes too soon for the offering where the market is not ready, like mobile devices with 5G ready at the affordable price to back the market.

The smart approach is to see the right timing for introducing the 5G service at reasonable price with the better economy timing, where the mass market has confidence in spending, 5G network in the mass affordable price, and the coming depression is in the early than expected recovery.

E-SPIN being in the active business with telco industry since 2005, to supply and maintain range of digital transformation related solutions, product and services for strategic and operation requirements, across region E-SPIN did business. Feel free to make inquiry and we see how we can assist in your specific needs and requirements.

Tagged under: 5G, COVID-19, Telecommunications

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