Go Global, Telecom, Go Global!

8 05 2009

(The importance of IBM Study is highlighted in new research carried out by TeleGeography, which talks about need of  ‘Global Intergration’  for a Telecom Operator, in an highly globalized world. This fact is highlighted, despite the fact that industry is facing global recession.)

Now here comes the support to my earlier arguments ,’Need of Global Integration for Telecom Organizations’. If  Telecom CEOs are more local in their business outlook, as compared to their peers in other industry, then they are restricting their growth, says new research  from TeleGeography’s GlobalComms Insight. Let’s see what the fuss is all about!

The GlobalComms Insight  predicts that both wireless and broadband subscribers will grow at over 10% per year over the next five years. This results in no fewer than 2.5 billion net new subscribers by the end of 2013. However, growth in the value of the telecoms services market will not keep pace with subscriber growth. The bulk of subscriber growth will come from countries where GDP per capita is under USD3,000 per year. Despite the best efforts of service providers to maintain or increase ARPU, global telecoms service revenues will grow less than 5% annually—less than half the rate experienced over the past five years.

Which service providers are best positioned to grow in this changing telecoms services market? TeleGeography’s GlobalComms Insight has studied eight of the world’s leading service providers and produced a range of metrics that describe them and their current business structure. One clear conclusion is that service providers with a more geographically diversified business have enjoyed much stronger business growth over the last three years and are more profitable. The growth prospects of service providers with strong competitive positions in a range of different countries far outstrip those with a single-country focus.

China Mobile is the one company that has managed to buck the general trend, thanks to the blistering mobile subscriber growth in its home market. However, even the world’s largest wireless service provider by subscribers is feeling the pressure, as evidenced by last week’s news that it will expand its global footprint by buying a stake in Far EastTone of Taiwan.

So if you look at the future growth prospects of few organizations, Verizon, BT(I have mentioned BT under Hungry for Change trait, but to be a Globally Integrated Organization, research gives less marks to BT. Surely, BT lacks the third trait. )& NTTDoCoMo lies in the leftmost bottom corner, indicating the need of increasing the footprint beyond national geography. In short, there is a need of more geographical diversified business to sustain growth momentum for BT & NTT.  Telefonica, with its clear strategy has moved up to rightmost upper corner, by expanding its footprint outside national boundary. Same is applied to Vodafone, MTN.

If you are interested in details of research carried out, please check the link below:


Also check TeleGeography’s Global Database services at:





One response

9 05 2009
Satelec Phone | Go Global, Telecom, Go Global!

[…] here:  Go Global, Telecom, Go Global! Thank you for reading this post. You can now Leave A Comment (0) or Leave A […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: