MWC Shanghai: Talking Digital Transformation
Here at MWC Shanghai there is a lot of talk about the Digital Transformation, and the impact on Service Providers. Let me share some of the discussions and my perspectives on what it all means for the evolution of Mobile networks.
The evolution of the internet and the resulting global digitalization, has had an enormous impact on the telecoms industry. Starting with the digitalization of information with email, the Web and search, allowing people to connect in real-time. Then businesses digitalized their processes and built a networked economy, enabling “start-up” innovation to flourish with global impact.
Now we are in the age of digitalized business and social interactions, it’s mobile, social, video rich and cloud enabled. Global “over-the-top” (OTT) ecosystems have formed, allowing highly personalized services and content with mass appeal. This digital age has transformed many industries such-as the media, entertainment as well as telecommunications.
This transformation is far from over however, in fact the biggest business and societal impact may still be to come with the connecting of not just people, but also the billions of “things” that make up our food chain, supply chain and environment we live in. The potential of digitizing the world is immense, creating process efficiencies by linking supply and demand, cause and effect in real-time.
The Evolution of the Internet
Through this period, Telcos have had to navigate a number of transitions. The rapid growth in mobile devices and dramatic growth in traffic drives network investment, yet the creation of global OTT eco-systems, with radically different business models, has led to eroding revenues from traditional voice and messaging services. Telcos are looking to build new business models; monetizing information not connectivity, enabling businesses not just communications. They are also looking for new markets to address and value to extract from their networks.
Telcos need to capitalize on their core competence and look for new ways to increase the return on investment in their network infrastructure.