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Ovum Report – Digital Services and the Emergence of Telcos as DSPs

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Digital service providers (DSPs) have become significant players in the telecoms market, offering Internet-based services, such as IP voice and messaging, and content-related services. The success of these players as alternatives to traditional telco services has put telcos in a precarious position. As the penetration of mobile devices and the use of digital services increases, telcos can no longer ignore the impact of digital services and OTT players on their revenue performance. While some attempt to limit OTT access to telco networks by imposing restrictions on how these digital services are consumed, others have decided to offer these services as a means to retain customers and enhance revenue performance. As telcos evolve into digital service providers, they must bear in mind that the business and operating models supporting these services must be driven by a strong customer experience strategy. Telcos must also evaluate their current IT capabilities and consider upgrading their existing IT systems in order to successfully deliver digital technologies and provide a comparable customer experience. 

This report highlights the findings of a survey conducted by Ovum to investigate how telcos are evolving into DSPs. Ovum investigates the digital services currently offered and those that will be launched over the next five years, the business models currently adopted, and the strategies that need to be in place for telcos to remain successful as they evolve to become DSPs.

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