Industry Insights
Can Telcos Escape the Commoditization Trap? New eBook Provides Answers
By Ideas @ AppDirect / May 9, 2018
Earlier this year, Jon Fredrik Baksaas, former CEO of Telenor and current chairman of the GSMA, sat down with McKinsey & Co. to discuss what operators need to do to adapt in the fiercely competitive telecom landscape.
As he explained, the biggest challenge facing operators is “to remain relevant to customers.” He continued: “Since the financial crisis of 2008, the value of over-the-top (OTT) companies… has soared. But that of most operators, whom the OTTs depend upon to connect everyone, has grown only modestly.”
Baksaas believes the solution to this problem lies in changing the DNA of today’s telecom companies. “First and foremost, we need to realize that operators’ genes are coded to build networks. It’s hard for them to think about developing services. The second is the gene that runs scared of collaboration… All need to understand that the competitive landscape has changed, and operators need to shape their value creation strategies accordingly.”
"Operators’ genes are coded to build networks. It’s hard for them to think about developing services."
How to shape those value creation strategies is a critical question that communication services providers (CSPs) must answer. A major new eBook from AppDirect, “Escaping the Telecom Commoditization Trap: Four Strategies to Differentiate and Drive Revenue in the Digital Economy,” begins to do just that, offering a look at the commoditization trends that are impacting the industry.
Packed with facts and figures, the eBook also explores concrete strategies that CSPs can use to drive value—and increased revenue—in the digital economy. As the eBook states: “Improving the customer experience, offering innovative digital products and services, targeting the SMB and IIoT markets—CSPs enjoy numerous opportunities to differentiate their companies and escape the commoditization trap once and for all.”
Click here to download the “Escaping the Telecom Commoditization Trap” eBook.
Ideas @ AppDirect is a leading source for trends, statistics, best practices, and other information related to the digital economy.
Related Articles

Industry Insights
5 Market Predictions for 2023 —What You Need to Know
Get prepared! Our 2023 forecast will help you decide where to focus on. Find out key predictions and how it may impact you and your customers.By Ideas @ AppDirect / Partners / Jan 30, 2023

Industry Insights
Key 2023 Economic Trends & Challenges—and How to Respond
How advisors can stay competitive in this challenging environment. We explore inflation, changing expectations around cash, productivity, and more.By Ideas @ AppDirect / Partners / Jan 16, 2023

Industry Insights
How to Build a Robust Cyber Security Strategy
Learn about the cybersecurity threats facing businesses today and choose the right solution.By Ideas @ AppDirect / Partners / Dec 20, 2022