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Network operators must understand how market disrupters are changing businesses

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Telecom network operators and communication service providers (CSPs) are facing a growing and undeniable outside threat from big market disrupters, and they need a clear understanding of how those forces are changing their business in order to ensure their long term survival, according to the latest report from Heavy Reading Insider.

"Telecom operators and CSPs have long understood the threats posed and the opportunities created by competitors such as system integrators, network integrators, and enterprise solution providers," notes Danny Dicks, research analyst with Heavy Reading Insider and author of the report. "But they are now threatened by more commercially disruptive types of organizations, with innovative business models, global scale, or the financial and market power to significantly disrupt telcos' businesses - and their impact is harder to predict and counter."

The business of telecom network operators and CSPs is being shaken up as never before, Dicks says. "Not only is there more competition from companies pitching for the same fundamental market position, but just as telcos and CSPs try to move beyond the limits of their traditional revenue-generation activities, they find that a host of competitors from beyond telecom is preparing to move onto their patch," he continues. "To understand how all this might play out, network operators must have a clear picture of how their position in the value chain is changing, so that they can better understand how to create a viable survival strategy."

The report also said that preparing for changes in the nature of interpersonal communications will be necessary - in particular, investment in traffic management and video-optimized networks.. In addition, as more of everyday life becomes connected, telcos will find it harder to extract value from transactional, content-based, and even communications activities.

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Tags: telecom