a href=”http://www.commsbusiness.co.uk/RSS_News_Articles.cfm?NewsID=16204″Core Telco revenues to decline by 1.8% per annum until 2015/a
The move to an all-IP world where everything is connected presents a major threat to telecom operators’ core voice and SMS revenues, but also significant opportunities for these operators to extract value from adjacent markets. This is one of the main findings of Telecom Operators: Let’s Face It, the 11th edition of the annual report[1] from global management consultancy Arthur D. Little and equity broker Exane BNP Paribas.
The telecoms and pay-TV sector faces a sustained decline in core revenues by -1.8% pa until 2015e, driven by a combination of macroeconomic headwinds, regulatory intervention and strengthening competition from Over-The-Top (OTT) players like Google, Apple or Skype.
Telecom operators in particular can expect stronger OTT cannibalization threats in mobile (in voice and SMS), but potential upsides in fixed line (acceleration of fiber and cable broadband adoption, and the opportunity to launch or partner for their own content services).
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