Telecommunication

The industry has grown up.

Over the last two decades the telecommunication industry experienced tremendous growth – internet and mobile based technological leaps inflamed youthful imagination and companies with thousands of employees found themselves in start-up euphoria.

Buzzwords like „growth of customer base“, „market share“ and „technological leap“ have now lost their validity as universal remedy. Drastic fall in price levels led to eroding margins and increasing sales and customer acquisition costs. The deviation more customers = higher profit doesn’t hold true any longer.

At the same time sins of the past are coming up: multi-billion investments in licenses and infrastructure, complex IT-architectures and non-transparent product portfolios create unmanageable complexity and massive costs.

The main imperative for companies in the telecommunication industry is therefore, to increase efficiency of the existing value creation process. Therefore, processes have to be streamlined, infrastructures need to be consolidated and complexity of IT and networks has to be reduced.

Additional and „real“ growth can be generated via inorganic acquisitions and the development of new business models. The question if pure bit-pipe models or cooperations with content providers are sufficient to sustain the growth remains unanswered. But the selection of the appropriate strategic approach and the most promising market segments is more essential than ever.

michael henze & partner

supports companies within the telecommunications industry, to successfully develop and implement strategies, to select the most promising market segments, to define appropriate product strategies and to cope with internal complexity.

If you want to learn more about michael henze & partner’s capabilities please navigate through our Competence matrix and contact us.