Strategizing and Revenue Creation in Dynamic Paradigms: A Model to Support Revenue Analysis for Mobile Incumbent Telcos

The growth of the Mobile telecommunications business in Italy has largely offset the decrease in revenues coming from fixed telephony. More specifically, we are witnessing a significant growth in data services, mainly driven by connectivity. The competitive landscape is also evolving, thanks to the growing convergence between the markets of Telecommunications, Media and Consumer Electronics. In consideration of the above scenario, this study aims to develop a strategic model in to analyze revenue streams generated by Telcos in the Italian Mobile services segment. This model describes the variation of the main factors influencing income and creates three possible future scenarios (optimistic, pessimistic and expected), affecting these variables in the next 5 years. The goal of the model is to support Telco executives in the identification of any critical areas that may create large gaps in revenue in the coming years and in the formulation of the right strategies.