Competition and Market Consolidation Augment Industry Convergence
January 18, 2017 | Frost & SullivanEstimated reading time: 1 minute
New business models such as over-the-top (OTT) video services from operators and content providers, business and home applications of broadband services, and machine-to-machine and payment applications in mobile networks are transforming and consolidating telecommunication services in Colombia. Stakeholders and investors need to offer value-added services, new sustainable business models and advanced technology in order to thrive in an evolving ecosystem.
“Traditional telecommunication services will experience increasing competition and lower margins, therefore market participants will need to think outside of the box and elevate their message by raising it above ‘connectivity’ - forging new narratives around business innovation and digital transformation capabilities,” said Frost & Sullivan Digital Transformation Senior Industry Analyst Gina Sanchez.
Colombia Total Telecommunications Services Market, Forecast to 2021, new analysis from Frost & Sullivan’s Communication Services Growth Partnership Service, finds that industry consolidation is likely to continue due to increasing capital expenditure requirements and decreasing margins. Projects and service portfolio transformation, seamless fixed-mobile convergence, and non-traditional sources of revenue will drive growth in the future.
Colombia’s total revenue from the telecommunications services market reached $9.1 billion in 2015 and is expected to top $11.5 billion by 2021 driven by TV and video services, mobile connectivity demand, bundled offerings, network upgrades and expansion as well as recovery of purchasing power.
While mobile data, fiber-to-the-home (FTTH) and Internet protocol television (IPTV) revenue services grew by double digits in 2015, mobile and fixed-voice services presented a significant drop due to decreasing mobile termination rates and substitution for other types of communication.
Azteca Telecomunicaciones, a regional player, and Orange Business, a global player, are examples of innovative companies that are growing above the market due to customer service, innovation and network expansion.
“Going forward, players will need to identify a vertical focus based on their skills, expertise, and partnerships,” noted Sanchez. “They should monetize new opportunities through innovative business models and introduce fresh capabilities and resources when developing new processes.”
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community.
Suggested Items
Industrial PC Market Size to Record $1.75 Billion Growth from 2023-2027
05/03/2024 | PRNewswireThe global industrial pc market size is estimated to grow by USD 1.75 billion from 2023 to 2027, according to Technavio. This growth is expected to occur at a Compound Annual Growth Rate (CAGR) of almost 6.29% during the forecast period.
Real Time with… IPC APEX EXPO 2024: Direct Imaging Equipment and Quad-wave DLP Light Engine Technology
05/03/2024 | Real Time with...IPC APEX EXPOGuest Editor Kelly Dack and MivaTek's Brendan Hogan delve into the company's innovative technologies, including direct imaging equipment and quad-wave DLP light engine technology. They highlight the benefits of direct imaging, compensation, and DART technology.
LQDX Divests Aluminum Soldering Business - Mina™ - to Taiyo America Inc.
05/02/2024 | PRNewswireLQDX, formerly known as Averatek Corp., developer of high-performance materials for advanced semiconductor manufacturing, today announced that it has divested its aluminum soldering business – known as MinaTM – to Taiyo America Inc., a global market leader in advanced electronic materials.
IDTechEx Report on Quantum Technology: Nano-scale Physics for Massive Market Impact
04/30/2024 | PRNewswireThe quantum technology market leverages nano-scale physics to create revolutionary new devices for computing, sensing, and communications. Across the industry, quantum technology offers a paradigm shift in performance compared with incumbent solutions.
Guerrilla RF Completes Strategic Acquisition of GaN Device Portfolio from Gallium Semiconductor
04/29/2024 | BUSINESS WIREGuerrilla RF, Inc. has finalized the acquisition of Gallium Semiconductor's entire portfolio of GaN power amplifiers and front-end modules. Effective April 26th, 2024, GUER acquired all previously released components as well as new cores under development at Gallium Semiconductor.