Competition and Market Consolidation Augment Industry Convergence
January 18, 2017 | Frost & SullivanEstimated reading time: 1 minute
New business models such as over-the-top (OTT) video services from operators and content providers, business and home applications of broadband services, and machine-to-machine and payment applications in mobile networks are transforming and consolidating telecommunication services in Colombia. Stakeholders and investors need to offer value-added services, new sustainable business models and advanced technology in order to thrive in an evolving ecosystem.
“Traditional telecommunication services will experience increasing competition and lower margins, therefore market participants will need to think outside of the box and elevate their message by raising it above ‘connectivity’ - forging new narratives around business innovation and digital transformation capabilities,” said Frost & Sullivan Digital Transformation Senior Industry Analyst Gina Sanchez.
Colombia Total Telecommunications Services Market, Forecast to 2021, new analysis from Frost & Sullivan’s Communication Services Growth Partnership Service, finds that industry consolidation is likely to continue due to increasing capital expenditure requirements and decreasing margins. Projects and service portfolio transformation, seamless fixed-mobile convergence, and non-traditional sources of revenue will drive growth in the future.
Colombia’s total revenue from the telecommunications services market reached $9.1 billion in 2015 and is expected to top $11.5 billion by 2021 driven by TV and video services, mobile connectivity demand, bundled offerings, network upgrades and expansion as well as recovery of purchasing power.
While mobile data, fiber-to-the-home (FTTH) and Internet protocol television (IPTV) revenue services grew by double digits in 2015, mobile and fixed-voice services presented a significant drop due to decreasing mobile termination rates and substitution for other types of communication.
Azteca Telecomunicaciones, a regional player, and Orange Business, a global player, are examples of innovative companies that are growing above the market due to customer service, innovation and network expansion.
“Going forward, players will need to identify a vertical focus based on their skills, expertise, and partnerships,” noted Sanchez. “They should monetize new opportunities through innovative business models and introduce fresh capabilities and resources when developing new processes.”
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community.
Suggested Items
Nanotechnology Market to Surpass $53.51 Billion by 2031
04/25/2024 | PRNewswireSkyQuest projects that the nanotechnology market will attain a value of USD 53.51 billion by 2031, with a CAGR of 36.4% over the forecast period (2024-2031).
Technica USA Presents Inaugural Supplier Alliance Award at IPC APEX EXPO 2024
04/24/2024 | Technica USADuring IPC APEX EXPO 2024, Technica USA took the opportunity to thank all of their supply partners that made the effort to join them for the exhibition in their booth, as well to all of our SMT partners that had their own booths, with the latest in automation and process technology.
IDTechEx Report Unveils 3D Electronics Status and Opportunities
04/22/2024 | PRNewswire3D electronics is an emerging manufacturing approach that enables electronics to be integrated within or onto the surface of objects. 3D electronic manufacturing techniques empower new features, including mass customizability, greater integration, and improved sustainability in the electronics industry.
IDTechEx Examines the Opportunities for Wearables in Digital Health
04/19/2024 | IDTechExIDTechEx’s report, “Digital Health and Artificial Intelligence 2024-2034: Trends, Opportunities, and Outlook”, covers this ongoing trend in the consumer health wearables market and includes analysis of the opportunities and roadmap for biometric monitoring.
Real Time with... IPC APEX EXPO 2024: Pluritec's Expansion and Growth in the North American Market
04/19/2024 | Real Time with...IPC APEX EXPONicola Doria, president of Pluritec, discusses the company's strategic focus on the North American market, their investment in a new sales organization, service expansion, and a new process integration line. The conversation also covers market response and future installations, as well as Pluritec's new partnership with IEC.