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Telcos Doomed To Lower Revenues |
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Written by Adam Gosling
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Thursday, 08 November 2007 |
An research organisation in the United Kingdom claims there's little
incumbent wire-line telecommunications companies can do in the long
term to halt their revenue declines.
According to research analyst firm Analysys has calculated that the
push toward data and video services by organisations like Australia's
Telstra which have enjoyed incumbent retail phone monopolies, will not
offset the continuing revenue declines they face from new technologies
taking their voice revenues.
Examining the Western European Fixed Telecoms market Analysys predicts
that the rapid market share in voice and retail service revenue (line
rental) will continue to decline at the rate of 4.0% per
annum until 2012.
"The opportunity from IPTV has to be seen in
proportion to the loss of revenue from traditional services and,
therefore, the smartest NGN investment strategies balance cost savings
on legacy services with enabling new services," says the report's main
author , Rupert Wood.
"Telcos will have to stretch their brands beyond
the rapidly commodifying triple-play market if they are to avoid
further erosion of revenue. Genuine differentiation at the level of
applications or content, more engagement in the distribution of
customer equipment, and rapid development of the wholesale
managed-service portfolio are all viable strategies for avoiding this
fate."
Other findings in the report indicate that by 2012 retail legacy voice
revenue will have declined by
53% in Western Europe. Further as mobile convergence takes over the
overall fixed-line call minutes (12% of which will actually be VoIP)
will
represent just 36% of total voice in the region.
By that time, says the researcher, broadband and data services will
account for 63% of operators' retail revenue as residential broadband
penetration
rises to 70% actually reversing the decline in household fixed-line
penetration in some markets. However over 30% of households will have a
broadband connection but no legacy narrowband connection, says the
report.
The report analyses trends in Austria,
Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland,
Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and
the UK.
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