Alianza, Inc. released a new Omdia research report on March 12, titled “Reinventing Core Communications: Strategic Imperatives for Growth” that explores the effects of and ways to manage increasing operational complexity, network costs, and revenue pressures faced by telco companies.
Alianza reports that net global telecom revenue has stagnated, declining from $1.99 trillion in 2014 to $1.98 trillion in 2022. CapEx during that same period however, has skyrocketed to $3.6 trillion.
The company believes that pressures from stagnation will continue to escalate, which will push service providers to seek new paths of growth. The rise in operating expenses, reports Alianza, is creating an urgency for cloud migration and technological innovation.
Kevin Dundon, chief strategy officer for Alianza, said in a press release, “Omdia’s new report outlines the current reality that telecom sits at a crossroads, where its historical aversion to change challenges future viability. The risk of doing nothing now outweighs lagging concerns about migrating core communications to the cloud. Service providers must address the growing urgency to innovate and modernize core communications to overcome the consequences of market trends that have shaped the industry for too long.”
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