Telecom operators should innovate to stay in the race:Gartner

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Mumbai, Nov 12 (UNI) At a recently concluded Gartner Symposium at Cannes, analysts warned that traditional telecom carriers would not for long be able to rely on conventional tactics like price cuts, promotions, and basic product bundling to stay competitive and relevant.

Faced with increasing competition, they will have to look for newer ways to provide consumer-centric experiences which they will be able to do primarily by exploiting content.

However, the flip side, as Gartner predicts, is that over 80 percent of these carriers will fail in the attempt to do so.

The successful 20 percent will be those players who manage to deliver a consumer-centric experience, for instance through interactive TV, where users can chat online, while watching their favorite TV shows.

Given the changing landscape, Gartner predicts that by 2012, half of the twenty largest telecom carriers would have established businesses outside telecom, including media entertainment, advertising and managed services. Again, more than half would have failed in the effort.

The remedy, according to Gartner, is to follow three emerging business models: content innovation, where carriers will produce, own, and use their content to differentiate themselves from others; content aggregation, where carriers will only source and package content, not create it; and bit pipe carrying, where carriers will focus on operational excellence and not so much on content and services.

There is no water-proof compartmentalization, as per Gartner.

Carriers will more or less have to adopt a combination of these models to stay competitive through 2012.

All said, the telecom industry in 2012 will be very different from as we know it today. Strong partnerships, customer groups, internet services and Web 2.0 will constitute the main pillars of this future-scape, analysts added.

UNI

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