I recently had the opportunity to work with Kevin Werbach from the Wharton Business School of the University of Pennsylvania. Kevin’s work is focused on the intersection of business, law and technology and how these areas apply to digital convergence in the media and telecom industry.
In an article we recently published together, we analyze the market trends and technologies that are reshaping the future of Telecom, Media and Technology (TMT) industries. We note that recent technology advancements, rapid uptake of smart devices and the pervasiveness of the Internet have had a profound impact on the TMT industries. If you look at these markets, it is noteworthy how new age technology companies are disrupting the value chain with their suite of innovative products and services. Think of Google, Amazon, and the likes, their success illustrates that we have moved from an era of closed, controlled business environments where innovation was limited to select owners of proprietary resources, to an open eco-system thriving over the ubiquitous Internet platform.
TMT players have to accept that we are living in a new digital world, where size does not really guarantee success. Disruptive services such as You Tube, Skype and Netflix have completely changed the dynamics of the business. The growth in bandwidth consumption to accommodate an insatiable consumer appetite for video content has not necessarily generated new revenue for telcos. Therefore, TMT companies must reduce their reliance on proprietary metered business models and adopt new flexible business models. Although, many TMT players have already started their transition journey, they are still struggling to live with these new realities.
We also analyze how the wide-scale adoption of smart devices, social networking and wireless mobility is creating many new opportunities as well as challenges for TMT players. We explore these market dynamics in detail and also look at some of the exciting new telco market opportunities such as location based services, M2M, cloud services and analytics. There is a lot in store for TMT players in this era of flux, and as you read, you will come across some interesting findings and approaches that may change the way you think about these markets.
Thanks for reading and I look forward to your feedback on the piece…