The Nigerian Communications Commission (NCC) yesterday advised telecom operators and other stakeholders in the industry to retune their business models in line with current and forecasted industry trends in order to survive the changing digital environment.
This was made known at the Vanguard Economy Forum with theme: “Unlocking the Revenue and Growth Opportunities in the Telecoms Sector in a Changing Business Model and Digital Technology Environment: Role of Regulators, Operators and OTT Service Providers,” held at the Civic Centre, Victoria Island, Lagos.
Speaking at the forum, the executive chairman/chief executive officer (CEO), NCC represented by head technical standards and network (Integrity), Engineer Bako Wakil, said the business environment was becoming more complex and the business models that were created in the past were no longer sustainable as telcos were presently seeing the gradual erosion of their average revenues per user (ARPU).
“Telcos are faced with challenges such as how to effectively monetise new services such as mobile broadband, the evolving consumption patterns and advent of social media as the popularity of web and over the top (OTT) services are eating into the traditional telcos revenue streams.
“There is need for telcos and vendors to think outside the box and create innovative partnership and low cost business models with themselves and other players in the business ecosystem in order to move from providers of connectivity to facilitating and creating content which can be passed through the VAS aggregators.
“They should continue to stretch the boundaries of what current revenue models allow. They should consider to start exploring B2B2C models which seems to be where the future is going as against the B2B and B2C models of today as this will create a win-win situation for all players and enable them to remain in business and thrive despite the industry’s complexities,” Wakil said.