The rise of asset-light telco
IT’S COMMUNICATIONS JIM, BUT NOT AS WE KNOW IT
Unify Issue 4
Just as email and messaging apps have all but killed off postal services as a way of sending and receiving business correspondence, so cloud services and software are changing the look of telecommunications providers.
For both types of legacy organisation, the problem is costly infrastructure. Postal services need letter drops, vehicles, buildings, workforces. Traditional telcos need cables, fibre, switches, routers, control centres and last-mile connections to customer premises.
It all comes at a heavy price.
But now a new kind of assetlight telco is emerging, one that focuses on core network and services provision and leaves the burden of last mile access to third party providers. For this new breed of telco it means a substantial reduction in costs and a reduced operational and maintenance overhead.
Unburdened in this way, the new asset-light telcos are free to concentrate on service levels and customer satisfaction. More fleet of foot than their traditional competitors, they also have more resources to develop and roll out the new products and services – for example cloud voice and incoming call management – that their customers are asking for. And they can focus investment where it matters, on the core network.