Situation

No other industry has changed our life and behaviour as much as the telecommunications, media and technology industry (TMT). Rapidly shortening innovation cycles require a constant adaption of business models to the new strategic, operational and financial challenges.

Technology has become a critical success factor in the market. Only companies that are able to keep pace with the high innovation speed will be able to sustainably secure their competitiveness. It is key to keep an eye in the future and to know already today which products and technologies clients will be requesting tomorrow.  

The fixed line and mobile bandwidths provided by the telecommunications industry were and still are the main driver for innovation speed. Compared to other countries, Germany has a lot of catching up to do. However, providing broader bandwidths requires massive innovations that have to be refinanced by new products and services. 

In addition to the classic telecommunication providers, cable net providers have started to offer internet access and fixed line phone services in the last years. Beginning from analogue cable connections, they have extended their product portfolio as well as their customer base signficantly and thus have become serious competitors. Due to innovative technologies and data transfer standards they are currently able to offer higher bandwidths and have thus become drivers of innovation.  

Cable net and telecommunication providers have one thing in common: the way into content marketing. So in the course of increarsing digitalisation more and more cable net providers have extended their paid content offers of target group specific channels or foreign language packages. Also the telecommunications industry is following this way by their IPTV, mobile, TV, games and music offers. "Content is King" is still valid and represents a central future source of income last but not least to refinance the high infrastructure investments.

Media players have to adapt their strategies to the changing media consuming behaviour and the transfer from traditional channels print or TV to the internet or mobile devices. This leads to a massive reduction of advertising income that is enhanced by the prevailing low willingness of the end customers to pay for internet services. Both effects can be compensated only by innovative strategies and products.