Simon Woodcock looks at the likely effects of current exceptional global challenges on the telecoms sector.
• Increases in the cost of parts such as computer chips, coupled with a reduction in availability of components and materials, will see rising production prices and supply chain challenges.
• With increasing scrutiny relating to environmental issues and e-waste, technology companies will need to grapple with expectations and regulations surrounding production and disposal.
• Technology companies will need to diversify their supply chains and manufacturing capabilities to reduce reliance on specific regions or vendors to minimise disruption.
• How to manage the transition from a legacy business model to the future whilst still maintaining the quality of their content and optimising monetisation.
• People are spending more time than ever consuming media content but in the shift away from print and linear broadcasting to digital, mobile and VOD, there will be winners and losers.
• With platforms such as Google and Facebook taking a significant share of advertising spend the task of optimising for monetisation has become even more challenging.
• In the eyes of consumers, telecommunication companies have very little differentiating qualities which means that companies often have to compete on price alone, creating significant cost pressures.
• At the same time, many companies have to invest in expanding and maintaining their network, including a new 5G network, which requires a large capital investment.
• Telecommunication companies still face older challenges such as supply chain efficiency and digital customer acquisition.