According to a report by Omdia, in order to grow the digital consumer services market at 5-21 per cent compound annual growth rate (CAGR) by 2027, telecom operators need to work with hyperscalers so that it can be potentially valued at $513 billion.
The report stated that non-traditional categories of digital gaming, online video, messaging apps, smart home and digital music show faster growth. E-health and financial services, and several leading players have already started investing in these spaces, as there is a strong future potential in it. All the growth areas will experience significant competition from hyperscalers, pointed out the report.
According to Jonathan Doran, principal analyst, Digital Consumer Operator Strategy, Omdia, service providers must look beyond data and diversify into adjacent digital markets to enable to continued growth of their telco consumer businesses. He added that many telcos have already invested in TV and online video entertainment, but there are other fast-growing markets that telcos can explore.
For instance, Bharti Airtel is present in several segments including consumer and enterprise services, subsea cable, data centres, and direct-to-home service and also has an Airtel Payments Bank unit. Similarly, Reliance Jio and Vodafone Idea Limited have a diverse set of services for both consumers and businesses.
