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Multinational operators have not been effectively harnessing their size and cross-country footprint. To create attractive economies of scale, they need to adopt a Telco Cloud model. Through a more common infrastructure and an innovation model which is sensibly calibrated across OpCos, large telcos will become more efficient and innovative.
The spread of 3G and 4G mobile networks in Africa and developing Asia, together with the growing adoption of low cost smartphones, is helping Facebook, YouTube, Netflix and other global online entertainment platforms gain traction in emerging markets. But some major international telcos, such as Vodafone and MTN, also have well-established and multi-faceted online entertainment offerings in Africa and developing Asia. How robust are these telcos’ entertainment services? Can they fend off the mounting challenge from global Internet players? What is working for Vodafone India and MTN and what needs a rethink?
Some of the world’s largest telcos see the fast-growing demand for online entertainment as a golden opportunity to shore up their revenues and relevance. BT, Telefónica and Verizon are among the major telcos pumping billions of dollars into building end-to-end entertainment offerings that can compete with those of the major Internet platforms. But how well prepared are telcos to respond to the forces set to disrupt this fast-changing market?