NEW YORK-A new report from consulting firm Katzenback Partners L.L.C. says leading wireless carriers must evolve from network operators to managers of complex and diversified businesses as new technologies and competitors enter the market.
“Until now, all the carriers have needed to do is to meet demand and market their service,” said Brian Corey, telecom practice leader at the firm. “But their space is suddenly threatened by multiple new technologies, new competitors and new regulations, all in a more saturated marketplace. They are no longer upstarts-they are big companies in a fast-maturing industry, and they need to manage accordingly.”
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The report said carriers must diversify by choosing a strategic option, including acquiring another company or being acquired in order to broaden their range of services; building a new business alongside the existing one; experimenting with new business ideas; or stalling competition with lobbying.
“Rather than choosing a single strategy, most carriers will adopt two or more of the strategies in combination,” said George Appling, chief operating officer and president of Global Solutions for Brightstar Corp. and a co-author of the report. “For example, they may try to delay competitors through negotiation while giving a new business unit time to mature.”
