Mosttelecomcarriers will fail to
transform themselves into successful content enablers by 2012, said
analyst Gartner.
The analyst said 80% of carriers will fail to make the
transition, even though traditional telecom carriers can no longer
rely on conventional competitive tactics such as price cuts,
promotions and basic product bundling to maintain their edge in the
consumer segment, said the analyst.
Gartner said that non-traditional telecom players such as Apple,
Google and
Nokia, which have a strong understanding of consumers, are
adopting new business models that are forcing carriers to reassess
their approach and service delivery.
Faced with this competition, traditional telecom carriers will
attempt to transform themselves by primarily exploiting content,
but Gartner predicts that more than 80% will fail.
"The players that will be among the successful 20% will be the
ones that provide a consumer-centric experience, for example
through interactive TV, where users will be able to chat online
while watching their favourite TV programmes," said Martin
Gutberlet, a Gartner analyst.
Owning infrastructure initially gives telecom carriers some
competitive edge but this is mitigated by non-traditional
competitors that do not own a network but bundle their services
attractively, he said.
"As demonstrated by Apple and Google, three new attributes are
coming into play and driving change in the marketplace that the
traditional telecom players must embrace to become successful
content enablers.
"They are trust, usability and an exciting customer experience.
If customers trust your services, they are willing to grant you
access to their personal life. Ultimately, improving the customer
experience will increase customer loyalty," said Gutberlet.