Thursday, July 6, 2017

87% Fewer Telcos in 7 Years

Though not directly caused by 5G, the 5G era will witness a colossal restructuring of the global telecom business, with the changes happening within a decade.


To wit, by 2025, the global telecom service provider industry is going to shrink from 800 firms to about 105,  according to Bell Labs. That is a reduction of 87 percent, by 2025, or just seven years from now.


At the same time, the ranks of truly global providers will shrink from 10 to five. All others will be largely regional or “one country” local partners.


So the merger wave now sweeping the Indian mobile industry, and soon to hit the U.S. market, is only a precursor of global change on a stupendous level.


In the telecom business, a new competitive landscape will emerge, characterized by “the emergence of a new global-local duality of new service providers with either global or local focus,” says Bell Labs. There will be five global service providers that offer global connectivity, cloud and contextualized control and content (C&C) services.


In addition, there will be 100 local cloud-integrated network providers that offer domestic, hyper-local connectivity, edge cloud and contextual C&C services.


“Stitching it all together: a global-local alliance framework that connects and interworks the local and global service providers, similar to that of the airline industry,” says Bell Labs.


In recent years, for example, three global airline alliances have gotten 73 percent passenger share.



Precisely what can be done about that looming trend is the issue.


Sanjay Kamat, Managing Partner, Bell Labs Consulting, will address the large framework as part of “telecom week,” a week of training provided by the non-profit Pacific Telecommunications Council in Bangkok, the week of 18 September to 22 September, 2017.


“Telecom Week,” a five-day training program created by the Pacific Telecommunications Council and aimed at mid-career telecom professionals, regulatory staffs and C-suite executives who will have to evaluate what 5G means for their businesses, will begin with the larger strategic picture, and then drill down on mobility, 5G and then provide three days of training for telecom professionals who will have to manage the huge change.


The unprecedented week of training includes Spectrum Futures and  PTC Academy content, and attendees will earn certificates of completion.

Seven years is a stunningly-brief period of time for industry changes of this magnitude.

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