PROVIDING services like broadband connectivity, cable TV, enterprise solutions, and payment wallets is the need of the hour for telcos, and a second wave of consolidation is upon the industry, a rating agency said on Tuesday. India Ratings and Research said the sector, which was battered following the aggressive entry of Reliance Jio, will continue showing signs of recovery amid conducive regulatory environment and maintained a “stable” outlook for the industry in FY22. The second round of consolidation (Consolidation 2.0) is kicking-in in the industry, which will bring a transformation in the business models of telecom companies, leading to the evolution of incumbents from the providers of traditional voice-only services to complete digital solutions for households, it said.
Along with wireless mobility, telcos will have to provide services such as broadband connectivity, cable TV services (direct -to-home), enterprise solutions, e-payment wallets/platforms, music applications and over-the-top transmission platform. Such bundling of services along with the traditional wireless mobile services has become the “need of the hour” to ensure customer stickiness and widen the market footprint, the agency said.It can be noted that the sector was once a very busy field with up to half a dozen operators to choose from.