[Close]  
Market research logo; 24 years of Excellence in Market Research since 1988.

United Kingdom    France   Germany   Saudi Arabia   Spain

>

Planning for the upturn: recession strategies for telecoms operators

Planning for the upturn: recession strategies for telecoms operators

Table of Contents

Market Study
Published: March 2009
Pages: For full details, please email keithw@cmsinfo.com
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 2800.00  Buy Now!
Research from: Analysys Mason
Sector: Mobile Strategies

So far, the economic downturn has been relatively kind to telecoms operators: revenue is not collapsing, profitability is holding up and their stock value is, in general, outperforming the market as a whole. This extended period of 'phoney war' cannot last, however, and operators will be affected by the overall malaise; in particular, rising unemployment will change long-term trends in end-user spending. The current economic crisis will select the strong operators of the next decade. This report will answer some of the questions that operators must address in order to fall into this category. The first questions relate to relative success in a poor overall environment: how should an operator balance the imperatives of maintaining revenue and profitability with keeping volumes high? And what sort of structural changes and efficiency measures can an operator effect to see it through the immediate crisis?
The economic crisis is unlikely to lead to the collapse of many operators because the sharp telecoms downturn in 2002 swept away lots of the structural weaknesses that still remain in many other sectors of the economy. So the most important question for operators will be: what can we do during the downturn that will give us an enhanced competitive advantage when the economic situation improves?
The issue of cost control has to be seen in this forward-looking light, and the questions 'What can't operators afford to give up?', 'What are false efficiencies?' and 'What spending might operators even accelerate in a downturn?' are just as important as 'Where can operators save costs?'. Similarly, operators should be asking the following question about their product portfolios: what kind of product set will attract the sort of customer base that brings long-term success? Recession focuses the minds of both consumers and businesses. Operators that focus on how to shape their telecoms businesses to emerge stronger from the recession will be the next decade's great companies.
Planning for the upturn: recession strategies for telecoms operators answers your key questions:
What sort of strategy will create strong players in an upturn?
Where is it best to continue to invest?
How are operators trimming costs and what cost savings should they avoid?
How should a recession affect the evolution of the product set?
Does recession speed up or slow down long-term structural changes along fixed–mobile, vertical–horizontal and service–access axes?
What can telecoms learn from other service industries about success factors in a recession?
What are the strategies of players in deeply affected markets?

Top of Page