Every communications services provider (CSP) today has the same basic strategic agenda: Transform the enterprise to build top-line growth and manage costs. Several complex factors are driving that agenda.
One is the ongoing consolidation of major carriers and cable companies. To compete in this environment, CSPs have no choice but to consider pursuing their own mergers and acquisitions. Companies are looking for cost synergies from distribution, equipment, marketing and customer service initiatives – resulting in higher earnings per share.
CSPs also face the commoditization of traditional voice business. Customers are becoming extremely price-conscious – while also demanding innovation and excellent customer service. And they’re increasingly willing to switch providers if they’re not satisfied. To retain customers and stimulate new revenue growth, many companies are deploying broadband and next-generation networks, or NGNs. Those technologies help CSPs deliver profitable voice, video and data services like voice over IP and IP television. Companies now expect payback on their network investments through higher sales.
What’s more, the communications and IT businesses are converging. Some CSPs now offer managed IT services, while IT service providers are moving into network management. Only by developing such a complete range of services can CSPs efficiently sell and support the complex solutions customers want.
To ensure their success, CSPs are finding ways to transform their operations. By implementing key organizational, IT infrastructure and process changes, companies are making their mergers, network deployments and converged services efforts pay off – in increased revenues and lower costs.
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