Traditional telcos threatened by IP services

Traditional network providers are concerned about threats from Internet-based competition, new research from JAJAH has revealed.

IP-based services like those offered by Google and Skype threaten to undercut carriers because they are quick to market and don’t have the costly overheads of conventional telecom operators.

As such, operators are becoming increasingly receptive to partnering with innovative service providers.

“Subscriber behaviours are changing, value propositions are shifting and new business models are emerging,” said Jon Arnold of J Arnold & Associates, who conducted the research for JAJAH.

“Service providers are quick to acknowledge they cannot do it all themselves,” Arnold added.

There is no longer a killer app or a ‘silver bullet’ solution that will attract all customers, JAJAH said.

Instead, carriers should offer a ‘suite’ approach to IP service delivery by allowing customers to choose and personalise their own services.

Customers are now more loyal to devices, applications, and online communities than they are to operator networks, meaning that operators wanting to retain customers must provide access to all of these.