According to the new report by consultant firm Ernst and Young, more than one-third (37percent) of CTOs and CIOs it interviewed see disruptive competition as the single greatest strategic challenge facing the telecom sector.
It said that nearly three out of four survey respondents (74 percent) place it in their top three challenges, followed by lack of organizational agility (47percent) and lack of return on investment (37percent), said Digital transformation for 2020 and beyond report by EY.
Prashant Singhal, EY Global Telecommunications Leader, says:"Disruption remains a white-hot theme in the telecoms industry, as newcomers eat into legacy revenue streams and operators seek new growth opportunities in the Internet of Things and beyond. If operators are to make the most of the 5G era from 2020 onwards, they must take bolder steps to overhaul legacy business models and form more dynamic customer relationships."
The report said that "operators are focusing investment through 2020 on digital business models and improving the customer experience to address new competition from outside the sector. "
EY added that when asked about their main strategic priorities, 39 percent of survey respondents identified customer experience as their number one focus area and 61% said it's one of their top-three initiatives. Digital business models emerged as the biggest strategic priority for 24 percent of those surveyed and a top-three priority for 71 percent of respondents.
Adrian Baschnonga, EY Global Telecommunications Lead Analyst, says:"Looking ahead, operators have to strike a balance between the transformation of processes and people within their organizations. While the network is still king for many players, only greater levels of organizational agility will help operators realize their role as enablers of the digital society."