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2013 is Darwinian tipping point year for telecoms industry: “Evolve or die!” according to IDATE research

Leading European think tank sees key to success lies in strong strategic relationships with other industry players such as content delivery providers

London, 30th May 2013 - IDATE, the No. 1 European Internet think tank, today has published the 13th edition of its DigiWorld Yearbook, the Bible of the internet industry, and the de facto international source of reference for media, cloud, telecoms and internet industry trends. IDATE experts provide a concise and easy to read reference manual of the digital world, including key figures and a look at the latest innovations and key events that marked telecom, internet and media markets during 2012.

In the Yearbook preface, IDATE Institute Chairman, François Barrault, warns readers that the current state of affairs is not solely the result of the economic crisis, or Schumpeterian creative destruction. Especially at a time when 'digital innovation remains an essential vehicle of productivity and a new growth cycle'. Which segues nicely into Barrault's announcement of the theme chosen for this year's DigiWorld Summit - taking place in Montpellier on 20 and 21 November 2013 - which will be the very timely titled: "Digital Gold Mines".

The Digital World growth dropped in 2012: Telcos advised: "Embrace innovation: Evolve or die!"

The Digital World has reported a sizeable drop in revenue during 2012, with growth decreasing to 2.7% after two steady years of recovery. Didier Pouillot, who heads up the DigiWorld YearBook project, says, 'Equipment markets took a severe battering in 2012, with unit sales shrinking in virtually every category and pressure on prices almost wiping out any of the benefits of customer upgrades. The TV market was the hardest hit, which dragged the entire consumer electronics market down by 7%'.

But increased competition in the smartphone and tablet markets offers a glimmer of hope for the other two sectors. And although services markets can be said have weathered the storm, relatively speaking, it seems highly unlikely that they will find their way back to the growth rates of the mid-2000s, and even less to the double-digit increases of the late 1990s.

The sole exception here being internet (OTT) services which continue to grow by an average 20%. Pouillot expands "Telcos do have certain leverage to deal with this change, starting with creating more value from network access now that OTT services are increasing user consumption. NGN technologies allow telcos to increase speeds ('best network' strategy) and to introduce noticeable quality improvements, both of which can differentiate their offerings. But it is clear 2013 is a pivotal year and telcos must embrace innovation. A simple Darwinian case of evolve or die!"

IDATE is nevertheless keen to stress that digital innovation is far from exhausted. In his introduction IDATE CEO, Yves Gassot, reaffirms the three driving forces behind digital innovation today, namely mobile, cloud computing and big data. Gassot takes a look back at the headlines of recent months, and develops his analysis around several key points:

  • the recession in Europe's telecom market strikes a contrast with the progress being made over in the United States, boosted by 4G rollouts and the prospect of a new round of mergers;

  • the tremendous weight that the internet giants have acquired should not blind us to how fragile these positions really are (Apple), and the multifarious pressures they have to contend with.

(ends)

About the DigiWorld Yearbook

  • 197 pages that deliver the finest market insights from IDATE experts who track the changes at work in the globe's telecom, Internet and media industries throughout the year.

  • The DigiWorld Yearbook is published in English and French and available in print and PDF format. An iPad edition, developed by Forecomm, is also available.

    • The 2012 edition can be downloaded for free

    • The 2013 edition is available for purchase. Print: €99.99, incl. VAT; PDF and iPad: €54.99, incl. VAT

More information at: www.digiworld.org/yearbook2012

The DigiWorld Yearbook is published by the DigiWorld Institute by IDATE, supported by more than 40 members, major companies from the digital world :

Alcatel Lucent
AtoS
at&t
BNP PARIBAS
Bouyges Telecom
BT
BULL
Cable & Wireless Worldwide plc
Caisse des Dépôts
Capgemini
Ciena
Cisco
Cloudwatt
Coriolis
EMC
ERICSSON
Eutelsat
France Télévisions
Gemalto
HP
IBM
Iris Capital
Microsoft
Mobistar
NEC
Netgem
NTT Docomo
1 Oak Financial Group
Orange
PWC
Qualcomm
Sagemcom
Samsung
Sequans Communications
Serena Capital
SES
SFR
SOCIETE GENERALE
Swisscom
T-mobile
TDF
Technicolor

Contacts
IDATE, Jean-Dominique SEVAL
Deputy CEO
+33 (0)4 67 14 44 07
jd.seval@idate.org
@DigiWorldIDATE

UK Press Relations
Rose Ross
Tel +44 (0) 208 255 5225
idate@omarketing.com
@Rose_at_O

ABOUT IDATE
Founded in 1977, IDATE has gained a reputation as a leader in tracking telecom, Internet and media markets, thanks to the skills of its teams of specialized analysts. Now, with the support of more than 40 member companies - which include many of the digital economy's most influential players - the newly rebranded DigiWorld Institute has entered into a new stage of its development, structured around three main areas of activity:

  • IDATE Research, an independent observatory whose task is to keep a close and continual watch on digital world industries, collect relevant data and provide benchmark analyses on market developments and innovations in the telecom, Internet and media sectors - through its comprehensive collection of market reports and market watch services.

  • IDATE Consulting, time-tested analysis and consultancy solutions: Our multi-disciplinary teams of economists and engineers established their credibility and independence through the hundreds of research and consulting assignments they perform every year on behalf of top industry players and public authorities.

  • DigiWorld Institute, a European forum open on the world: The DigiWorld Institute will take existing IDATE initiatives, such as the DigiWorld Summit, the DigiWorld Yearbook and the monthly clubs in Paris, London and Brussels, to the next level. Members have the opportunity to participate in think tanks on the core issues that will shape the industry's future, drawing on the knowledge of outside experts and our own teams.

More information on: www.idate.org

Source: RealWire

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