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Moving Beyond Connectivity to Capture Growth Opportunities
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This research service includes market sizing for base year 2016 and a 6-year forecast for all main services in the Mexican telecommunications services market. These services include fixed telephony (including local and international long distance), mobile telephony (voice and data), broadband Internet (including ADSL, cable modem, and FTTH technologies), pay TV (including cable TV, DTH, and IPTV technologies), and data communications (including dedicated IP, MPLS, private lines, circuits, VSAT, international data, and Metro Ethernet technologies). Revenue and lines in service (LIS) metrics are provided, including client segmentation (residential versus small and medium businesses versus corporate), technology breaks, and a detailed market share analysis of each service in each segment. A qualitative analysis on the market’s competitive structure (market stage, customer price sensitivity, degree of technical change, number of active market competitors in base year, and market concentration), challenges faced by the industry participants, and drivers and restraints affecting each business segment is also provided. Finally, growth opportunities are highlighted, including a brief description of how to capture them.This research service shows that while some telecommunication services have already reached a mature stage, others still present significant growth opportunities. Businesses that present low growth rates for revenue or even a declining rate include fixed telephony (both for local and international long distance businesses), mobile voice, some fixed broadband technologies (e.g., ADSL and cable modem), some pay TV technologies (e.g., cable TV) and some data communications technologies (e.g., private lines, circuits, and international data). Telecommunications service providers should focus on segments that present growth opportunities (e.g., mobile data or technologies such as FTTH, DTH, IPTV, dedicated IP, MPLS, VSAT, or Metro Ethernet), but also look at positioning themselves as more than mere connectivity providers because connectivity is increasingly becoming commoditized, with the logic pressure on prices and margin. In the journey to differentiate and offer value-added services beyond connectivity, telcos need to rethink their organizational structure and the portfolio they offer to their clients. In addition, they need to define roadmaps focused on digital transformation and innovation strategies in order to reinvent business operations and enable new services. The main elements of the digital transformation for telecommunication service providers must include self-service, agile IT, and vertical solutions. But they should also acknowledge the fact that they cannot do it all by themselves, and therefore they need to cooperate with a wide ecosystem of partners and start-ups to be able to cater to end users’ needs.
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