Challenges in Malaysia telcos' go-to-market strategies : Are today's telcos dialing in?

23 March, 2006

Kuala Lumpur, March 23, 2006 – The telecommunications industry in Malaysia has been a fast changing market. Lower barriers of entry, breadth of products and discerning customers have created an industry that will no longer tolerate telcos resting on their laurels. IDC shares its key findings from a recently concluded study entitled “Telecommunication Service Provider Channel Strategies: Partnering for the Bigger Pie”.

IDC mentions that due to the broad spectrum of addressable markets for various telecom products and services, telcos will need to adopt multiple strategies to address various markets. Moreover, the telecom market is also facing strong threats from information technology service providers (ITSPs) who are now moving into areas which are traditionally seen as telecom services. Value-added services (VAS) have also become the main selling point for enterprises with return on investments (ROI) being given more emphasis and with CIOs determining their investments based on the value which the investment will generate for the company as a whole.

“Telcos in today’s market can no longer be complacent in capturing their markets. With competitive pressure and highly segmented markets coming to play, telcos who do not adapt to these market dynamics will dial themselves out”, according to Lincoln Lee, Senior Analyst, Telecommunications Research, IDC Malaysia. “The telecommunications market is a highly dynamic market that needs to address a broad spectrum of customers, from individual users up to the largest enterprises. As such, telcos will need a diverse yet clear-cut set of strategies to address this market”, Mr. Lee added.

In this study, IDC has identified varying strategies that telcos may engage in targeting varying segments. One key finding is the pressing need to enter into partnerships and alliances with distributors for mass consumer markets, while partnering with key IT service providers to target niche enterprise markets. “Through these strategies, telcos will be free to focus on their competencies, while reaching out to the markets. Through strategic alliances, be it with market distributors, or with IT service providers, telcos can effectively bring better value to their customer. For example, in the highly niche markets such as the managed services industry, by engaging with an IT service provider, telcos can bring to the table a one-stop offering to the customer”, added Mr. Lee.

For more information about purchasing this research, please contact Hazmi Yusof at +603-2169-7522 or hyusof@idc.com; or Stephen Chong at +603-2169-7521 or ckchong@idc.com

Contact

Chee-Kian Chong
Events & Marketing Executive
Tel: +603-2169-7521
Fax: +603-2163-5098
Email:ckchong@idc.com