The year 2011 has been an entertaining one in the telecom industry, and few could have predicted the exciting developments that we saw. With new regulations (NTP-11) taking shape, impending 4G launches next year, and the continued development of the data services and devices markets, 2012 promises more excitement. Here are some industry trends we should all get prepared for:
Regulatory uncertainty and confusion
Even before NTP is finalised, there is a huge debate about its potential strictures. With 12 to 14 service providers in most circles, policy proposals are beginning to pave the way for consolidation of industry needs and we should expect a reasonable amount of deals activity to begin in 2012. Exploiting the possibilities for large and small operators will require meticulous planning to be alert in navigating the regulatory hurdles around market share, spectrum rights and transaction compliance. Tower companies and operators are considering public offerings, and getting ready for these requires being on top of the regulatory requirements.
Reinventing the operating model
Now that we are seeing the maturing of Indian mobile, expect to see more purposeful streamlining and repurposing of telco operations. Infrastructure sharing moves to a greater degree of outsourcing and shared services, innovative national roaming deals, new retail look-and-feel, enhanced customer experience from contact centre to shop, changes in the structure of rural distribution, and new methods to allocate scarce finance, HR and planning skills across multiple circles.
Make data services work
As the market continues a downward trend in ARPU to below Rs100 , operators have to be more innovative and have to execute in marketing, pricing and bundling, and must bring new hero services to market. 3G launches have by-and-large not impressed the Indian population and to win in the market, players need help in creating traction for service offerings, in marketing and distributing through the right channels, and in making the most of whatever opportunity new retail tie-ups may allow.
Give the customer an experience, not a service
In 2011, market uptake of tablets has risen by more than 250 per cent globally mainly due to the graceful form and apps appeal of the iPad. In India, affordability more than form will drive mass uptake. There are already a number of sub-Rs 10,000 devices available and prices will keep falling. With middle-class purchasing power rising, expect the device market to grow rapidly in 2012. Integrating the device with services, and with the retail experience, is the key to creating a total customer experience. This will be the single-point CMO agenda for established service providers in 2012. This demands innovation, process, IT and technology execution to work together to create that customer experience, and to justify the investment dollars the industry is putting into branding and advertising.
Cloud coverage
After lots of “hot air” we can expect cloud-based consumer and enterprise offerings over wireless networks to begin to scale in 2012. We expect the first 4G/BWA deployments next year will utilise the cloud for offering software-as-a-service, platform-as-a-service or Infrastructure-as-a-service for enterprises and homes. Cloud computing has the potential to become the silver bullet for emerging businesses in India Inc by increasing enterprise agility and in the long term also reducing the costs associated with license acquisition and maintenance.
(The author is Executive Director & Leader Telecom, PwC India)