Ovum highlights the importance of partnering for continued growth in telecoms wholesale market

Partnering is a more strategic approach to growth for telecoms wholesalers than the alternatives of in-house development or mergers and acquisition, according to global analyst firm Ovum. It enables carriers to broaden their service portfolios, increase network reach, and respond more quickly to changing customer requirements.

Economic uncertainty and intense competition has made it increasingly difficult for wholesalers to achieve their business growth objectives. Yet Ovum research finds that carriers partnering with established third parties are more likely to succeed in launching new services and entering new markets, while at the same time developing new skills through cooperation and collaboration.

“The growth of partnering in wholesale telecoms is a lot more than just a fashionable trend or marketing spin,” says David James, practice leader of Ovum’s wholesale team. “There are real benefits for organizations willing to invest time and resources into developing mutually beneficial relationships with a range of different partners.”

The key difference between traditional relationships and those involving partnering is the degree of cooperation and collaboration in achieving a common goal. Partners establish multiple relationships across their organizations, share development plans, and integrate internal systems and processes to maximize the benefits of their joint service proposition to customers. However, despite being lower risk, lower cost, and quicker to market, not all partnering relationships work, and success depends on a range of criteria.

“Careful selection of partners with complementary capabilities and similar objectives is essential to the success of partnering arrangements,” comments James. “Getting an agreement in place creates a partnership, but the level of communication and trust will define its success. Wholesalers must share information, plans, best practices, customer feedback, and market intelligence and monitor the continuing effectiveness and benefits of working with each partner.”

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