Telecom versus Online - Worlds in collision

Telecom operators face slowing growth in voice, internet, and broadband revenues. New services like IPTV are not expected to significantly improve revenue growth. Online players are successfully capturing consumer attention with communication and content services launched at a rapid pace. Innovative business models from new players also challenge telecoms' fee-based revenue structures. To compete, telecoms will need to revisit their innovation strategies and address challenges in driving internal innovation and benefiting from external innovation like that of acquired start-ups.