By Nwafor Sunday
The Executive vice Chairman of the Nigeria Communications Commission, NCC, Prof. Umar Danbatta, Wednesday said, telcos business environment is becoming more complex than it has ever been.
Danbatta, who was represented by Engr Bako Wakil, at an event organized by Vanguard Media, reeled out challenges facing telcos. He mentioned monetization and social media as factors affecting the business aspect of Telcos.
With the theme: ‘Unlocking the Revenue and Growth Opportunities in the Telecoms sector in a changing business model and digital technology environment – Role of regulator, Operators and OTT Service Providers’, Danbatta, who spoke immediately after Eze Anaba, the Editor of Vanguard’s key note address, said that the business environment is becoming more complex, and the business models that created in the past are no longer sustainable as Telcos are presently seeing the gradual erosion of their average revenues per user (ARPU).
His words: “As a result of the increasing complexity of the operating environment of our industry, Telcos who grew on the back of traditional voice and data traffic are realizing that value is moving into other stages in the telecom ecosystem and also into completely different markets as consumption patterns change, and these consumption patterns are changing rapidly.
Speaking further, Danbatta urged Telecom industry players to understand the ongoing trend. He disclosed how important it is for Telecom industry players like Telcos, vendors and Value Added Service (VAS) licenses to consider taking steps to change their business models in line with current and forecasted industry trends as may be required.
He advised Telecom industry players to challenge the traditional norm of where a telecom business fits in the lager ecosystem.
According to him, “In order to remain in the business and thrive, there is need for Telcos and vendors to think outside the box and create innovative partnership and low cost business models with themselves and other players in the business ecosystem. “This will create a win-win situation for players and them to remain in business and thrive despite the business complexities”, he said.
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