The search for growth: Telcos' key expansion strategies

Asia's incumbent telecommunication providers are in trouble. Fixed line operations hardly grow or even decline. Wireless business is hitting the wall rather sooner than later.

The article, published in Telecom Asia, contains a great analysis on possible future growth - and it can be said that companies don't change quickly, somebody else might eat their rice, so to say.

So, what are the challenges? Telcos are experiencing the impact of five dynamics:

* Fixed and, to a lesser extent, wireless markets are at saturation point

* New technology like IP and VoIP are eroding margins

* Competition is increasing in scale and intensity

* The lack of a strategy beyond broadband

* The loss of wireline voice traffic to mobile operators.

What is needed now is a change of mindset on side of the carriers. They have to simply realise that growth in traditional sectors won't come back. An different understanding of market dynamics is needed.

Telecom Asia's own survey found some likely areas:

1.) "notably broadband and triple play,
2.) wholesaling and managed services, and
3.) innovative mobile services.

"Some of these are quite niche, and some haven't yet taken in the market. But one thing is that each is a result of focusing on and chasing down the needs of particular customer segments. In the new era, the customer rules."

The article is a bit lengthy for the casual reader, but provides great insides for those really wanting to know what can be done.

Challenge here overall? Speed and agility. As we said before, if you don't change fast and constant, someone else will eat the rice for you first. If you are unlucky, the plate is empty before you realise it!