Telcos will fail as content providers, says Gartner

Most telecom carriers will fail to transform themselves into successful content enablers by 2012, said analyst Gartner.

Most telecom carriers 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.




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