Competition and market consolidation augment industry convergence, finds Frost & Sullivan's Digital Media team
BOGOTÃ, Colombia, Jan. 17, 2017 /PRNewswire/ -- 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.
Click here for complimentary access to more information on this analysis and to register for a Growth Strategy Dialogue, a free interactive briefing with Frost & Sullivan's thought leaders.
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. Contact us: Start the discussion
Colombian Total Telecommunications Services Market, Forecast to 2021
K0D6-63
Contact:
Francesca Valente
Corporate Communications - Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300
E: francesca.valente@frost.com
www.frost.com
