Telecoms, Internet and media insights firm IDATE has launched the newly branded DigiWorld Institute, as the company outlines the key issues influencing European telecoms over the next decade.
The main challenges telecoms firms face, according to IDATE are: Firstly, the demand for growth outlets to offset the inexorable decline of now mature sections of their business (voice calling in particular).
Secondly, the requirement to invest in next generation systems such as fibre optic and 4G LTE networks to handle the explosion in traffic.
Thirdly, the need to find their place in increasingly open value chains and an ecosystem populated by fast-rising new and ultra dynamic players, including OTT providers and device suppliers.
Didier Pouillot, the head of IDATE Telecom Strategies Business Unit said: "This explosion in consumption and the traffic it generates can also prove an opportunity for telcos, if they can find the right way to monetize it. For them, this is the biggest challenge that lies ahead."
The four trends influencing Europe's Telecoms meanwhile are identified as:
1) The sharp drop in European operators' income and their shrinking margins will result in a period of both direct mergers and large-scale infrastructure-sharing deals, first at the national level and subsequently to revived cross-border strategies.
2) The decrease in European group's share prices is opening the doors to foreign investment which will inevitably reshape the sector.
3)The momentum of superfast mobile and microcells is spurring the convergence of fixed-mobile infrastructures and the rise of quadruple play bundles.
4) The developments in networking technologies, and particularly those that fall under the heading of SDN (Software Defined Network) and cloud architectures integration.
The DigiWorld Institute brings together 40 member companies and will be centred around IDATE research and consulting as well as the DigiWorld Institute forum.
"The Digiworld Institute will take existing IDATE initiatives, such as DigiWorld Summit, and the monthly clubs in Paris, London and Brussels, to the next level. Members have the opportunity to participate in think tanks on the core issues that will shape the industry's future, drawing on the knowledge of outside experts and the Institute's own teams," explains the firm.