How will connectivity be sold in the future?
The impact of overcapacity and eSIM technology
Overcapacity is threatening to disrupt the telecoms industry in the Netherlands, but change will take time. How will this reshape the telecom landscape? Read on to explore the emerging challenges and opportunities.
Overcapacity in the Dutch telecom industry
The Dutch telecom market is entering a new era, characterised by major overcapacity in both mobile and fixed networks. On the bright side, an increasing number of devices—such as cars, drones, laptops, and wearables—require connectivity. A common question arises: will telcos maintain their central role in providing connectivity, or do they risk being overshadowed by device manufacturers and application providers utilizing eSIM (embedded SIM) technology to deliver embedded connectivity directly to consumers?
That risk is real. But at Deloitte, we think telcos are very unlikely to be displaced within the next decade, primarily because these device and application providers are serving a global market, in which only a minority of countries have connectivity as ubiquitous and robust as that in the Netherlands. While the over-supply of capacity means telcos will need to continue to cut costs, their position as the primary suppliers of connectivity to consumers looks fairly secure.
What is next for the telco industry?
This article, based on surveys of telecom executives and consumers in the Netherlands, explores how connectivity will be sold in the future and the evolving role of telecom companies in a market shifting from scarcity to abundance. Discover the possible future scenarios for telecom companies, the importance of speed and reliability, and the growing need for secure connectivity.
Download the full article for in-depth insights and strategies to navigate these changes.
