Amalgamated Telecom Holdings chairman, Ajith Kodagoda, says their priority at this stage is to ensure ongoing and planned strategic investments that support the future growth of the group are not compromised.

Also, he said to ensure the growth momentum achieved in the previous years was sustained through investments in infrastructure and customer experience enhancements.

But, Mr Kodagoda stressed telecommunications operators world over and the wider industry in which they operate, today face the stark challenges of the techno-economic transformation characteristic of the emerging digital era.

Some challenges

“Paradoxically, the transformations enabled through the ubiquitous rollout of broadband networks and services, are also enablers of disruptive business models,” he said.

“These ride “On Top Of” High Speed broadband and Internet Protocol based infrastructure they build.

“Disruptive competition in this respect comes in the form of OTT (Over the Top) service providers who compete with operators by offering Free or Freemium communication services spanning the breadth of Voice, Messaging and Video connectivity.

“Such disruptive business models are typically funded by advertising revenues that are only viable on a global scale thus threaten to squeeze out local innovators.”

Mr Kodagoda said fundamentally, the high-speed broadband infrastructure invested in by telecommunications operators enable the existence of OTT services.

He believes these will challenge the services provided by the underlying networks pose serious challenges to the long-term economics of building network infrastructure.

“Therefore, long-term changes to the structure and cost bases of providing various services in the industry will require significant realignment,” he said.

“This is to ensure that broadband infrastructure and network investments remain attractive to investors.”

Feedback: rachnal@fijisun.com.fj