Communications 

Joe Gallagher, partner at KPMG LLP on communications.

Business Leaders Agenda survey – Joe Gallagher - Communications:

"These are nervy times for telecoms operators as they come under increased pressure from internet based organisations who are benefitting from the networks that the telecoms companies built.

 

Our survey results suggest widespread acceptance that something must be done. The huge cost involved in building and maintaining networks simply isn’t sustainable in the long run.


One option – which I am starting to see discussed now – is the creation of a joint venture model, involving all the existing players, with a view to providing network resources for all.


Looking at the general market themes, it comes as little surprise to see telecoms operators showing a heavy preference for the themes of cost, efficiency and changing customer behaviour.


However, I am bemused by two of the more lowly ranked themes – using technology as a strategic enabler and focusing on sustainability and green issues. The latter is especially surprising, considering how it’s supposed to be such an important agenda item for Generation Y.


I can only assume that these survey results are indicative of some sort of time lag – with senior industry executives still coming up to speed on how important some of their key customers believe this to be.


Returning to our sector hypotheses, placing your bets on what the next big thing will be is always an interesting exercise.


In this instance, I’ve gone for smart grids - although telemedicine would not have been too far behind in second – and over half the survey respondents agree.


The ten percent who disagree is understandable – as it’s all a matter of opinion. The 37 percent of neutral respondents is a touch disconcerting though.


To not have a view one way or the other may suggest that a business is not as close to one of the latest industry developments as it should be.


That would imply an over-riding focus on the business of today, to the exclusion or detriment of the business of tomorrow – and I’m not sure that’s entirely sensible."