Telecoms firms set to change their business

Wires are not enough for telecoms firms

Up to half of the world’s largest telecommunications firms will offer new services that are barely related to telecoms by 2012, and many will derive at least 15 per cent of their revenue from IT and content services, according to research.

Analyst Gartner suggests that increasing numbers of fixed and mobile service providers will also branch out into content, video, advertising and application services.

BT and Vodafone are good examples of the model that many other telcos are expected to adopt over the next five years as they seek to reduce dependence on revenue from voice calls by broadening their portfolio.

BT's Global Services division builds a variety of packages around communications and networking products for corporate and government customers around the world, including applications management, outsourcing and managed IT services, and business transformation.

The division accounts for 38 per cent (£7.9bn), of BT Group’s total revenue (£20.7bn) earning £2.84bn of profit in the financial year ending 31 March 2008.

The Vodafone Group also offers managed business, application and mobile advertising services alongside mobile and fixed voice and data packages.

Telecoms providers will also focus on new digital services aimed at consumers, said Gartner, such as download and streaming services, small payment mechanisms and ticket ordering services, in order to attract new customers.