Digital transformation is truly transforming the telecom sector, but its biggest impact may be in emerging markets where it will have a multiplier effect on economic growth, according to Heavy Reading Senior Analyst Roz Roseboro.
Here's Roseboro's reasoning, which she laid out in a recent blog on Light Reading: Increased mobile broadband penetration leads to faster economic growth. Digital transformation leads to increased broadband penetration. Given that emerging markets have the lowest penetration in the world, digital transformations should be a boon to their economic growth. (See Digital Transformation Will Propel Growth in Emerging Markets.)
Some of the key elements of a digital transformation include automation, open source, analytics, cloud and DevOps/agile, all of which play a role in transforming operator businesses and emerging markets in the process. Here's how Roseboro says each will help:
- Automation: by dramatically reducing cycle times for network configuration and service creation, operators can lower their opex and get new services to market faster
- Open source: helps operators lower their capex and tap into innovation from a large pool of developers
- Analytics: by better understanding their networks and customers, operators can gain more optimized networks and more relevant offers for customers
- Cloud: offers a more cost-effective platform to deliver services
- DevOps/agile: lets operators be faster, more agile and more flexible in service deployment
"All of these benefits are certainly welcome in any market," Roseboro writes. "However, in emerging markets, where price sensitivity is pronounced, digital transformation can have an even greater impact on operators' ability to offer services profitably."
The domino effect of this for the rest of the value chain is that operators will be able to accelerate their plans to bring connectivity and related services to underserved populations. It's a win-win for the operators that are earning more revenues; governments and businesses that are getting new avenues to reach consumer; and for consumers who get the wealth of new resources, access and opportunities that connectivity brings.
— Sarah Thomas, Contributing Editor, Telco Transformation