Insight

Beating OTTs at their own game: a golden digital opportunity that global telcos can’t afford to miss

March 2017
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Telecommunications operators face a daunting challenge: customers have gotten used to the fabulous experiences that digital-native over-the-top companies (OTTs) provide. Now these customers are demanding equally exciting services from their phone companies. Telcos should embrace—not hide from—the digital disruption and other forces reshaping the landscape.  

At a glance

  • It’s hard for big, complex, and integrated telcos to swiftly and profitably meet ever-increasing expectations. 
  • They will have to break open their existing business models and reconfigure the pieces to build radically new ones—and they should do it quickly 
  • Big, integrated telco operators don’t compete in one business. They compete in two: on one hand there’s trading and customer relationship management (ServeCo), and on the other there’s network infrastructure management (NetCo). 
  • By separating ServeCo and NetCo, telcos can take a leaf from OTT companies’ book and build a new digita-lnative business that provides a global, fully digital telecom service.  

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