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Data Communications and Broadband Providers Struggle to Stand Out in a Nearly Saturated Scenario Using Distinctive Strategies and Business Models to Unleash New Value Propositions in the Corporate Segment
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Frost & Sullivan predicts that niche participants will assume an important role in the data communications and broadband markets in the upcoming years, whether providing services and connectivity with their own network or by unbundling incumbents’ networks. A noteworthy increase in the number of market participants—licenses grew 16% in 2016 in a mature market—has intensified competition, forcing participants to assume unique features and business strategies. It is reckless to say that only price and quality of service are sufficient to differentiate a provider, despite their weight in a negotiation or renewal. Providers must create specific business models for each segment and vertical in order to fully meet the needs of each type of customer. Research Aim: This study aims to identify the market strategies and successful actions of niche participants in Brazil’s telecommunications business-to-business (B2B) segment. It will provide data and insights that effectively map the competitive environment.Objectives: • To provide an overview of the fragmentation of the data communications and broadband markets• To analyze market participants by market size and share, besides features and strategies, with highlights of niche participants• To present the growth opportunities and call to action for market participantsBecoming a partner of the customer rather than simply remaining a service provider will increase the customer's trust, paving the way for the provider to deliver more services and thus increase average revenue per user (ARPU). In order to acquire such trust, it is necessary to listen to the customer's pain points and proactively propose customized solutions to their challenges and issues. Sometimes it will be necessary to redesign the internal processes of the customer towards digital transformation in order to increase efficiency and utilize solutions of high-added value, such as those based on cloud and Internet of Thing (IoT). The adoption of these distinctive features and business strategies distinguishes niche participants, which strengths in network integration, professional services/value-added services (VAS), custom solution capabilities, high service-level agreement (SLA) and customized-proximity support, besides a lower link activation time.Key questions this research will answer: • What is the market size and share for niche participants in the data communications market in Brazil?• What is the market size and share for niche participants in the broadband market in Brazil?• What is the scenario for incumbents in data communications and broadband in Brazil?• What are the distinctive features of niche participants in Brazil?• What are the profiles of top niche participants in Brazil?• What was the growth of niche participants and incumbents in 2016 in Brazil?
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