IBM Report, "Burning Up The Phone Wires," Encourages Telecom Operators To Adopt New Business Models

IBM Offers 2003 - 2006 Prospectus On Mobile, Consumer And Enterprise Telecommunications Industry

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ARMONK, NY - 16 Dec 2002: In a new report from IBM Business Consulting Services, telecommunications industry strategy consultants predict that modest growth--up to two percent across the industry through 2006--is possible for telecom companies that are willing to fundamentally change and embrace new business models, focusing anew on core competencies, customer-led product innovation, and strong strategic partnerships with other industries.

In the IBM report, "Burning Up the Phone Wires," authors Lawrence Kenny, Mark Gregory and Salvador Arias observe that by 2006 customers expect converged voice/data services will be available wherever they are--in the car, office, home, a taxi, airplane or distant locations. Loyalty to specific devices and networks will decline as more choices emerge. Customers will use the combination that best meets their needs, and the telecom industry must be ready to respond to those dynamic demands.

Outlining new business models for mobile, consumer and enterprise telecommunications companies, the report urges telecom companies to make tough decisions now to transform their business so they can ultimately offer the innovative products and services that exceed customer expectations--resulting in increased customer profitability and shareholder value in the future.

"To prepare for a transformed future, telecommunications executives must balance the demands of managing a maturing business today while taking the necessary risks to create complex new businesses in order to achieve growth," said Lawrence Kenny, partner and Americas telecommunications industry leader for IBM Business Consulting Services. "This is key for surviving in the near term--and, we expect, potentially thriving in the longer term."

Some of the highlights from "Burning Up the Phone Wires" include:

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