COPENHAGEN, July 9, 2002 - The Western European telecoms market has faced numerous challenges during the past few years in terms of intense competition, industrial convergence (utilities and telecoms providers), declining voice revenue, UMTS licenses, increased shareholder demand, and the global economic slowdown. To remain profitable in an increasingly competitive Western European marketplace, telecommunication operators have to focus on the most valuable - industrial and private - customers in the coming years.
"In order to survive these tough market conditions, IDC believes that telecoms operators must enhance their focus on core telecoms competencies, improve their business efficiency, and retain the most valuable customers. An increased use of CRM, business process automation, and billing applications are all components of the roadmap to profitable growth," said Lars Schwaner, Research Analyst with IDC's European Software Group.
Telecom operators have to realize that price is not the only factor for customers in choosing a service provider and that customer satisfaction and loyalty stem from excellent customer service. "Customers - both industrial and private - are becoming more and more demanding in terms of service quality and availability, as they need to be able to interact at any time using a variety of channels," continued Lars Schwaner.
European telecom operators are confronted with several challenges, with some of the significant ones being:
· New telecoms operators entering the Western European marketplace, offering innovative and competitive services for industrial and private customers · The mobile phone market, which has grown incredibly fast over the past years, is now reaching saturation and showing slower growth rates. The search for competitive advantages is becoming crucial for telecom operators' revenue growth · The lack of applications and content is delaying the adoption of general packet radio services (GPRS) and 3G in Western Europe. An enhanced collaboration between telecom operators and ISVs is expected
Telecommunications: Back to Basics (IDC #LS26J) is an introduction to IDC's research about European utilities and telecom applications. This research focuses on the trends characterizing the Western European telecoms market and its impact on independent software vendors (ISVs). It will describe industry-specific supply chain issues within this market and how software applications can impact these issues positively. To purchase this document, call your local IDC office or visit us at www.idc.com.
About IDC
IDC is the foremost global market intelligence and advisory firm helping clients gain insight into technology and ebusiness trends to develop sound business strategies. Using a combination of rigorous primary research, in-depth analysis, and client interaction, IDC forecasts worldwide markets and trends to deliver dependable service and client advice. More than 700 analysts in 43 countries provide global research with local content. IDC's customers comprise the world's leading IT suppliers, IT organizations, ebusiness companies, and the financial community. Additional information can be found at www.idc.com.
IDC is a division of IDG, the world's leading IT media, research and exposition company. # # #
All product and company names may be trademarks or registered trademarks of their respective holders.
For more information, contact:
Lotta Hållén-Kragh
+45 39 16 22 42
lhallen@idc.com
Lars Schwaner
+45 39 16 22 31
lschwaner@idc.com