Tuesday, October 1, 2019

ENTERPRISES FROM THE TELECOMMUNICATIONS SECTOR ARE LOOKING FOR NEW SOURCES OF INCOME

The telecommunications market can grow thanks to the synergy effect with other industries and the use of services in the cloud technology. Regardless of this, gradual consolidation awaits the industry. According to UKE data, only last year the Polish telecommunications market shrank by 2.6 percent. Its value amounted to PLN 39.2 billion. According to Audytel, growth can be ensured by cooperation with other industries, e.g. banking, or the use of services in the cloud technology. Regardless of this, the market will face gradual consolidation. Thanks to it, it is possible to reduce costs and maintain competitiveness.
The expert draws attention to the high saturation of the market. Most consumers are already using the full product range and it is difficult for companies to find demand for further services. In the opinion of Grzegorz Bernatka, telecommunications companies can take two paths for further development.

- First of all, it is a multiple combination of services, whether financial, or the sale of electricity, or maybe some other services, joining them to telecommunications services - he says.

The synergy effect and increasing the scale may cause that the package of services offered will be better perceived by consumers than the offer of individual services. An example is the combination of mobile telephony and banking services.

- The second chance is to use the new market, the cloud services market, and offer IT services for households, i.e. individual users, and for enterprises - explains Audytel's representative.

The interlocutor enumerates here a number of services such as data storage, photo and video processing. The applications offered by the operator can gain the interest of recipients and provide such a company with additional revenues. However, the expert sees much greater potential of services offered in the cloud for business clients, mainly small businesses.

- There is a demand for invoicing systems, project management, systems related to service of companies, their everyday activities is really big and offering such applications via the Internet will certainly meet with great interest - estimates Bernatek.

Audytel forecasts assume that the market of services offered in the cloud, seen as a whole, will grow in the near future between 10 and 20 percent. The increase in the sale of Internet applications will be even higher. This segment will reach over 20 percent. annual growth.

- The entire telecommunications sector faces the problem of reducing its operating costs. The fact that the market of basic telecommunications services has been falling for several years means that operators are looking for opportunities to offer increasingly competitive services - says the analyst, when asked about the prospects of the sector in Poland.

According to the UKE report, the value of the telecommunications market in Poland in 2014 amounted to PLN 39.2 billion. Compared to the previous year, the volume of revenues decreased by 2.6 percent. This year's forecasts assume that the market will shrink by another 0.5 percent.

- The best way to reduce costs is consolidation. Our Polish telecommunications market is very fragmented, it has several times more entities than on mature Western European markets - indicates Audytel's analytical project manager.

An example of consolidation on the domestic market is the takeover of TK Telekom by Netia. The value of the transaction carried out in July was PLN 222 million.

- I think that every year several such information will appear, 2-3 entities of different sizes will be taken over by larger companies - forecasts the expert.

The analyst also raises the issue of low IT spending in Polish companies. In relation to western countries, it is even five times less. Deficiencies, however, do not have to be an obstacle.

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