The Nordic market for communication services providers (CSPs) has been stable for several years in terms of growth, profitability, and predictability. The CSPs in the market have taken advantage of this stability and succeeded; they have continuously delivered results and payoff to their respective owners.
In this IDC Market Analysis, we analyze the Nordic CSP market from most angles and scenarios.
Even if the CSPs are a very important component in the digital transformation that enterprises and public organizations are experiencing, they have been less active in taking the opportunity to grow beyond the traditional set of services. The revenue growth has followed the growth in number of connections — the average revenue per user has been stable over the past four years, but growth outside the connectivity services has been small.
Starting from 2018, CSPs will experience a technology shift. 5G and NFV will be introduced on a larger scale, and fiber connectivity to homes and apartments is under strong development.
CSPs have many opportunities to service their customers differently and to create growth beyond traditional services. Outside traditional services, they are, however, facing competition from other ICT players.
The announced merger between TDC and MTG had the potential to change the game plan. The merger has been postponed, and is no longer likely.
The analysis is split into 2 parts, due to the number of aspects covered. This presentation is part 1.