Regulatory developments will enable reforms to gather pace in the telecom sector in 2013: PwC

PricewaterhouseCoopers (PwC) has identified the top five trends likely to dominate the telecom sector in 2013.

According to the firm, the telecom space grew at a slow pace in 2012, owing to the cancellation of licences following a Supreme Court order in February 2012. For operators, 2012 was a difficult year in terms of reorienting operational focus, providing compelling offerings for customers, and tackling regulatory developments.

Meanwhile, PwC is of the opinion that several developments are set to take place on the regulatory front this year, which is likely to result in various reforms that would contribute to the growth of the industry.

The top five trends identified by PwC include:

Slowdown in subscriber growth: Subscriber numbers have declined from three million per week in 2011 to six million subscribers per month in 2012. These numbers are likely to fall further, keeping in mind the slow rate of network expansion in rural areas and operator efforts to disconnect dormant accounts.

Managing scarce network resources: Over the next few years, operators will be engaged in intense network planning, innovation and diversification. Keeping in mind the current spectrum crunch, operators are examining various methods to manage their scarce network resources to deliver better quality services at a lower cost. Tower companies will be looking for opportunities to extend their role beyond passive infrastructure.

Focus on return on capital: With revenues declining, chief financial officers will be examining investments and expenditure very closely, especially those pertaining to the network, product development and IT. Operators will have to find a balance between containing costs and developing innovative applications.

Customer Engagement: In 2012, data service uptake was below industry expectations. This year, operators will continue to attempt to snag users by developing new services and enhancing customer experience. Moreover, the industry is likely to witness the launch of one niche service and as a leading operator is likely to establish a retail experience store in one of the metros to snag consumers.

Litigation: Operators are unlikely to accept all of the regulator’s decisions in 2013. Moreover, the industry is likely to take strong positions on issues like spectrum, re-farming and liberalisation.