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Telecoms Industry

Date post: 03-Jun-2018
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    THETELECOMSINDUSTRY

    Khuriyah Schmidt-Luprian

    Karolina SumeradzkaYefei Yang

    Alastair Yap

    Kahina Younsi Chabane

    Leah Meng Yuan Zhang

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    INDUSTRYOVERVIEW

    Provision of telecommunications services

    Broadly two categories

    Fixed line telephone and internet

    Mobile telephone and internet

    Increasing convergence of services

    Companies offering more: triple-play and quad-play

    services

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    MAJORPLAYERS

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    FOURTYPICALSTRATEGIESOFTELECOMS

    Source: Deloitte Consulting 2013

    http://www.deloitte.com/assets/Dcom-China/Local%20Assets/Documents/Industries/Technology,%20media%20and%20telecommunications/cn_tmt_analysismvnocompetitionstrategy_160813.pdfhttp://www.deloitte.com/assets/Dcom-China/Local%20Assets/Documents/Industries/Technology,%20media%20and%20telecommunications/cn_tmt_analysismvnocompetitionstrategy_160813.pdf
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    DELIVERYOFSERVICES

    Fixed line phone/broadband

    BT Openreach network

    Cable network

    Mobile Network

    Limited radio spectrum frequency available

    Periodic auctions MVNOs pay to use mobile network of established

    companies

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    The Competitive EnvironmentThreat of New Entrants (Low):

    High capital investment

    Regulatory approval & Licensing

    High operational costsScarcity of spectrum

    High exit costs

    Bargaining Power of Buyers

    (High):

    Increased number of

    telecom products- little

    differentiation.

    Low shifting costs.

    Consumer rights and

    security.

    Access to information.

    Bargaining Power of Suppliers

    (Medium):

    Fixed line services provided

    by BT Openreach/Cable

    Proliferation of suppliers

    Strong competition between

    existing suppliers and

    newcomers

    Threat of Substitute Products

    (High):

    Availability of Products and

    services from non-traditional

    telecom industries , enabled by

    new technologies ( Internet

    telephony, broadband internet

    services, satellite links)

    Competitive Rivalry (High):

    Cut throat competitionbetween existing players.

    Competition encouraged

    by government.

    Source: Ofcom (www.ofcom.org.uk)

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    S W

    T

    Strengths

    Global demand for IT services

    Targeting all different client bases.

    Global communication abilities

    Good infrastructure and

    communication networks

    Opportunities

    Possibility of an expension in the

    global market, speading coverage

    Development and investment in

    innovative hight technology product

    and services

    Convergence of services

    Threats

    New competitors

    Disruption of Services Due to

    uncontrollable Events

    Regulatory Environment

    VoIP/Instant Messaging

    O

    Weaknesses

    Highly regulated and licensed.

    Difficult market to enter due to

    requirement of high financial

    resources

    Competitive market

    INTERNALANDEXTERNALENVIRONMENT

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    PESTL ANALYSIS

    Ofcom: implements the legislation of the government

    Includes pricing, funding & network licensing

    Market and industry increasingly growing steadily in

    all sectors throughout recession until now.

    Disposable income as influencer in products offeredby tri-play and quad-play providers (TalkTalk, Virgin

    Media) as well as more segmented providers

    (Vodafone, Netflix).

    Job creation by large players contributing to the

    economy

    POLITICAL

    ECONOMIC

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    PESTL ANALYSIS

    Consumer demand for faster broadband and higher

    storage capacities due to increased usage secondary

    to a proliferation of internet enabled devices (mobile,

    tablet).

    Demographics creating niche products for the older

    population

    Customers interests & incorporating into company

    values

    Increased demand for speed and connectivity withinboth the mobile phone and broadband sector, thereforea need for companies to expand communicationsinfrastructure.

    New device releases may increase demand forservices

    Increase of TV boxes providing on demand and biggerlibrary of film and shows.

    Continuous innovation of devices and services.

    Whilst decline in older sectors, such as fixed phone line.

    SOCIAL

    TECHNOLOGICAL

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    PESTL ANALYSIS Enforced regulation by EU Commission to have lower

    rate for roaming under the Eurotariff.

    Digital economy act- prevention of copyrightinfringement of movies and music. ISPs required toblock sites and the warn persistent offenders distributingsuch materials.

    Regulations to keep the telecom market competitive

    through support of B2B sales, IE: cable network (Openreach) and mobile networks (4G).

    LEGAL

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    THREELEVELSOFSTRATEGY

    1. Corporate

    2. Business

    3. Functional

    Mission,

    vision &

    values

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    Business Model

    Usage & Service

    AccessIndustry

    Structure &Regulation

    Regular telephony declines and VOIP grows. Ubiquitous and seamless

    access models prevail with high levels of rich digital content consumption

    accessible from any device, platform or network. Communications remain

    fragmented across several tools but shared capabilities enable interoperability

    Voice is monetized as a feature of connectivity. Operators provide open

    wholesale access and interfaces to a wide range of capabilities including

    connectivity, customer information and billing services, to drive traffic on

    networks.

    New infrastructure

    competition

    stemming from

    government,

    municipality and

    local initiatives. willnew rules as Next

    generation network

    is deployed. Mobile

    and fixed

    termination rates

    disappear and

    boundaries blurbetween fixed and

    mobile services

    Mobile and fixed broadband

    become as pervasive as TV

    in advanced market. The

    battle of mobile broadband

    now favors LTE/3G

    penetration increasing inemerging markets. A

    bifurcated market of

    devices emerges with high

    penetration of ultra low cost

    devices in emerging

    markets. 1 in 3 devices in

    advanced markets is a

    high-end smartphone, MIDor laptop

    Telecoms in Future


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