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From product to service - How service orientation can generate long-term growth in the telco industry

2010

This study shows that delivering good services as part of a core product offering does not suffice as the sole differentiator in highly competitive telecommunications markets.

Telecommunications companies are facing difficult times: their products are very similar commodities, competition is fierce and pressure on margins is high. Incumbent operators are trying to set themselves apart through better service.

Therefore, companies should learn from other industry best practices to gain a competitive edge in and expand beyond their core markets. Other industries, such as computer or telecom hardware, have shown that business development based on new services can be a successful road to new growth.

To make this possible, a dedicated unit focused on developing the service business, with full control over its entire value chain, has to be the nucleus. These are the key findings of our survey.

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