Synergies Between Network Operators as Success Factor

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January 17, 2011
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Synergies Between Network Operators as Success Factor

BONN and ESCHBORN, Germany, January 17, 2011/PRNewswire/ --

    - Detecon: Telco Partnerships Create Growth in Value

    Non-competing telecommunications companies which jointly utilize
products, services, infrastructures, or know-how increase their
competitiveness. In view of worldwide challenges such as saturated markets,
limited opportunities for expansion, and disintegrating boundaries in the
value chain, the ICT management consultancy Detecon International considers
the bundling of available forces to be essential. According to Detecon
analyses, activities for which financing would otherwise not be available -
research and development are just two examples - can be conducted within the
framework of operator-operator partnering (OOP).

    Declining margins on mass markets and geographic regions in which two or
three network operators are well established are making the creation of new
business fields more difficult for telecommunications companies worldwide. On
many markets, omnipresent over-the-top players (OTP) such as Apple, Google,
or Skype are adding to the pressure by offering innovative services. So
scaling effects and synergies have turned into key success factors. "The
bundling of forces under a partnering agreement gives operators the
opportunity to maximize learning effects and earnings made on productivity,
ultimately enabling the further enhancement of competitive advantages,"
emphasizes Ulrike Eberhard, Managing Partner and Director Strategic Marketing
at Detecon.

    Telco partnering as indispensable catalyst

    Although cooperative ventures with network equipment manufacturers,
device manufacturers, and Internet corporations such as Google, Apple, or
Facebook have in the meantime become almost a routine element of daily
business for telco operators, partnerships among telco operators themselves
largely remained limited to network interconnectivity, roaming, and mobile
network activities. Yet strategically oriented operator-operator agreements
can pave the way to the promotion of presence on markets without the
concurrent high risks of investments and capital tie-up, for example.
Depending on the development level and business model of the partners, the
range of diversity for operator-operator partnering extends from unilateral
access to assets and services against consideration to interactive exchange
of knowledge, services, or other assets to the preparation of an acquisition.

    But if the partnering is to function and have a sustainable basis, the
candidates must be analyzed exactly. "Two partners at different maturity
levels, for example, can guarantee higher sales for the senior partner and
growth in value for the junior partner," advises Marwan Mazraani, Senior
Consultant at Detecon and expert for strategic marketing in the sector of
partner selection. His colleague Deniz Boztepe adds: "The more similar the
partners, the greater their chances for success if their strengths and
capabilities are complementary." Another important point is to maintain
consistent management so that the exchange does not degenerate into a
burdensome series of compulsories. Balanced incentives for both partners,
clear and sustained communication of benefits within the involved companies,
and regular checks and management of goal achievement are only some of the
pillars of functioning stakeholder management.

   
    Read the full article from Detecon here:
    http://www.detecon.com/partnering

    For additional information, go to:
    http://www.detecon.com

    info@detecon.com

    Press contact

    Detecon International GmbH
    Gerhard Auer
    Oberkasseler Strasse 2
    D-53227 Bonn
    Phone: +49-228-700-1013
    Fax:   +49-228-700-1017
    e-Mail: gerhard.auer@detecon.com
    http://www.detecon.com

Source: Detecon International GmbH

Press contact: Detecon International GmbH, Gerhard Auer, Oberkasseler Strasse 2, D-53227 Bonn, Phone: +49-228-700-1013, Fax: +49-228-700-1017, e-Mail: gerhard.auer@detecon.com

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