Information & Communication Technologies


Telco Datacenter and Cloud Services Market—Translating New Capabilities into New Revenue

How Telcos are using the Datacenters and cloud to unlock the core network and offer digital transformation services
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Published: 28 Sep 2017

Although India is one of the fastest growing mobile and broadband markets in the world, telcos in India face challenges on a number of fronts: an intensively competitive market with a large number of players, declining fixed-line revenues, increasing mobile customer churn brought about by mobile number portability, declining mobile revenue per user and minutes of usage due to the nature of the customer being acquired, and onerous regulatory oversight spurred by recent telecom scandals. Almost all telcos are pinning their hopes on the growing mobile value-added services (MVAS) market as a source of significant incremental revenue generation and increasing mobile revenue per user. Such services include multimedia messaging and global positioning applications. Although the MVAS market presents an attractive market opportunity given India’s demographics and market size, telcos in India would be prudent to systematically address the cloud computing services market for the small- and medium-sized business (SMB) segment in India as a another source of incremental revenue generation. Telcos are well-positioned to tap into this opportunity as they have invested substantially in bandwidth creation, and currently the market has excess capacity. Telcos also have the infrastructure in place for accelerated cloud adoption; however they have limited experience with addressing the SMB segment of the market.

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