B/OSS Special Report - Embracing the Eureka Moment of Granular Margin Management
That we have experienced economic uncertainty since Y2K loosed its unworthy grip is an understatement. And by itself this level of uncertainty—one based not on unpredictable trends but questions on how bad those trends might get—is enough to drive any responsible company toward more effective business practices. But the economy is not the only pressure point popping the ears of service provider executives.
From the outside in, a lower cost-of-entry and innovative business models have brought new competitors out of the woodwork. Technology innovation, long the life blood of telecom, has spread far beyond the familiar labs and created a new generation of communications giants. Pricing pressure from a hyper-competitive market as well as free or ad-based services and the untapped revenue from over-the-top content providers are befuddling the industry as a whole. Service providers also are feeling the pressure from within as they struggle to implement and pay for a transition from 3G to 4G, which at the same time only encourages the types of companies mentioned above. Their other long-term transition from TDM to IP adds the pressure of supporting multiple infrastructures while learning to become as nimble as their unencumbered competitors. And mature markets, unfortunately, have finally reached their saturation point.