The future of the telecom services industry will be shaped by a range of disruptive themes, with telecom services being one of the themes that will have a significant impact on telecom services companies. A detailed analysis of the theme, insights into the leading companies, and their thematic and valuation scorecards are included in GlobalData’s thematic research report,Telecom Convergence (2021) – Thematic Research. Buy the report here.
In an age of increasingly connected living, working, and playing, telecom operators are re-positioning themselves from conduits of commoditising connectivity to allround, end-to-end, and value-added digital service providers.
Telecom convergence is the combination of various carrier-provisioned services within integrated solutions and portfolios, facilitated by different kinds of interconnected underlying access methods. These integrated telco propositions, both established and emerging, span the six categories represented in the telecom convergence services stack: fixed-mobile bundles; TV and content; automated home; smart mobility; health and wellness; and digital commerce.
Embracing, or at the very least bracing for, convergence is critical to carrier business survival in the longer term. The operators that choose to act decisively now will be the ones shaping the market as it develops and the ones most likely to thrive.
However, not all companies are equal when it comes to their capabilities and investments in the key themes that matter most to their industry. Understanding how companies are positioned and ranked in the most important themes can be a key leading indicator of their future earnings potential and relative competitive position.
According to GlobalData’s thematic research report, Telecom Convergence in Telecom Services, leading adopters include: AT&T, Orange, KT, Singtel, and SK Telecom, Telefonica.
Insights from top ranked companies
AT&T is a US provider of telecommunications, media, and technology services. The company offers wireless communications, broadband, and internet services, digital video services, local and long-distance telephone services, telecommunications equipment, managed networking, and wholesale services. AT&T also develops, produces, and distributes feature films, television, gaming, and content over various physical and digital formats. It also provides advertisement and entertainment services for various household customers. The company serves individual customers and enterprises. The company markets services under various brands including AT&T, Cricket, DIRECTV, HBO Max, SKY, and Unefon. It has a business presence in the US, Mexico and Latin America.
Orange is a multinational carrier and fixed-mobile bundles leader in Europe, where integrated packages combining a variety of fixed broadband, cellular mobile services, and TV and content are offered throughout its footprint. The company is also a major mobile player in MEA, where it has used its extensive infrastructure and customer bases to provision mobile financial and cross-border P2P remittance services (Orange Money). In Europe as well, Orange has ventured into the digital commerce space, establishing the digital-first Orange Bank in France and Spain, offering end-users a comprehensive selection of banking-related products and services. The company is heavily invested in TV and content development, with a centralised Orange Content unit responsible for functions including strategic intelligence, rights acquisition, production, innovation, and monitoring of individual country content turnover. Other areas of Orange telecom convergence activity include automated home products, healthcare, and smart mobility solutions.
Telefonica is a multinational player with an extensive fixed and mobile network footprint across Europe and LatAm. Spain, its incumbent European market, was one of the first in Europe to move decisively towards integrated fixed and mobile package provisioning, and Telefonica’s headline Fusion portfolio remains an important execution case study for other telcos. Telefonica is furthermore an established player in the TV and content segments, not only in terms of its progressive pay TV platform but also with regards to original content production and ownership. The company has been an early mover in the automated home and smart mobility arenas and also focuses innovation attention on commerce, cybersecurity, smart cities, IoT, data analytics, education, and healthcare. Telefonica has also launched its own AI-based conversational platform, Aura. The technology is now being built into a number of its key service assets, notably its TV app and automated home service.
To further understand the key themes and technologies disrupting the technology industry, access GlobalData’s latest thematic research report on Telecom Convergence in Telecom Services.
- Saudi Telecom
- China Mobile
- China Telecom
- Reliance Industries
- China Unicom
- MTN Group
- T-Mobile US
- Chunghwa Telecom
- NTT DoCoMo
- Tata Communications
- Globe Telecom
- Advanced Info Service
- Telekom Malaysia