Telcos need to build partnerships to deal with disruptions: Nazareno-A A +A
Tuesday, September 3, 2013
THE telecommunications industry “is going through profound and painful transformation because of the disruptive impact of digital technologies,” said PLDT and Smart president Napoleon Nazareno.
“The Internet and social media are radically altering the way people communicate, and, are undermining the traditional telco services such as voice and SMS,” Nazareno said during yesterday’s opening of the Asian Carriers Conference (ACC) in Shangri-La’s Mactan Resort and Spa in Lapu-Lapu City.
Ovum Regulation & Policy practice leader Matthew Howett said that in 2013, an estimated $32.6 billion in SMS revenues were lost to social messaging applications like Viber and WeChat, among others.
Nazareno said that for telcos to do well in this new digital environment, “they must master a set of critical skills that they have not excelled in before” – building partnerships.
“The ability to manage relationships with many partners, or the flexibility to meet the needs of partners with different business models” are important, according to Nazareno, “because you need to put together many different players to make connected-life services work.”
The 9th ACC opened yesterday in Shangri-La Mactan. The conference gathers 1,300 delegates from 167 companies and 40 countries.
In opening the conference, Nazareno talked about the massive change caused by digital technologies and how telcos can deal with them.
Nazareno said Cisco designated 2012 as the “tipping point for mobile data.” In that year, mobile data traffic grew 70 percent” to 12 times the size of the global Internet in 2000.
“Cisco also predicted that the number of mobile-connected devices will exceed the world’s population this year,” he said. Handsets will also “exceed 50 percent of mobile data traffic in 2013.”
He said learning “how to become good partners” is one of the “many changes in mindset” operators need to do to be able to compete in the coming years.
Nazareno said PLDT is in an “extraordinary situation” because it is part of a group of companies that cuts across several industries.
Nazareno said he agrees with the observation that “operators tend to underestimate how fast and vast the marketplace is changing.”
He said operators “must act now, as quickly as we can, if we are to avoid learning the hard way.” He said the ACC, which will run until Sept. 6, was a venue for them to “work together to resolve issues, reach agreements and move forward.”
Published in the Sun.Star Cebu newspaper on September 04, 2013.