Category: Financial

MORRISTOWN, NJ – January 21, 2009 – TM Forum, the world's premier industry group focused on business effectiveness for the communications and media sectors, today published its latest industry update report – “Winning in a Shrinking World.” The report predicts that, despite the current economic climate, global communications markets will continue to grow, and looks at how savvy communications service providers can use this period to their advantage. 

This insightful report – which includes input from more than 60 global Service Providers participating in TM Forum’s Business Benchmarking program as well as expert input from industry analysts OSS Observer, an Analysys Mason company – yields valuable insights into the current economic crisis and its likely effects on the communications industry.

“The report describes the dynamics of a global market under pressure.” explained Martin Creaner, TM Forum’s President and CTO. “It shows how single percentage points squeezed here and there can make all the difference to razor-thin margins in the short term - while a more refined understanding of the way your business works and presents itself in comparison to its competitors can help with strategic planning over the long term – especially in relation to building long-term ‘sticky’ customer relationships and reducing costs and capital expenditure requirements.”



The report combines revenue growth expectations through 2010 from OSS Observer with analysis of detailed performance data gathered by TM Forum’s Business Benchmarking Program, and  highlights five areas critical to success:

1.    Collaboration: the companies that win will be those that can work with their suppliers and other Service Providers through industry associations such as TM Forum, to get to the same place faster and at less cost;
2.    Mobility: mobile services are already driving the communications industry and this trend is expected to accelerate over the next five years. By 2012, the report predicts, mobile revenue will account for more than 50% of communications revenues;
3.    Leakage: revenue leakage from unbilled and under billed services currently averages around 1% of total revenue, a number service providers will need to address in order to cope with increasingly tough competition;
4.    Execution: In today’s market, an ability to make the right changes first time, every time is critical to success. 
5.    Simplicity: providers must simplify service provision and ensure new services that deliver new revenue do not eat into profits by being too complex.

The report also looks at major trends in the global communications industry and illustrates some of the ways that TM Forum roadmaps, best practice guidebooks and benchmarking tools can assist service providers in adapting to a fast changing environment. “Benchmarking is not just about grinding out performance improvements - the data can also be used to highlight important trends and gain strategic insights. In a business environment that seems to be getting tougher by the day, management teams need all the help they can get.” commented TM Forum’s Benchmarking Program Manager, Tonia Graham.

“Winning in a Shrinking World” is the latest in a series of reports from the Business Benchmarking program exclusively available to TM Forum members, and explores the importance of strategic operations within Service Providers' organizations. With more than 90 communications service providers engaged in a wide range of studies, the Forum’s Benchmarking program offers participants an unrivalled opportunity to understand and compare their key performance indicators against competitors and counterparts around the world.

To learn more about this report, or to participate in the Business Benchmarking program, please contact Tonia Graham at This email address is being protected from spambots. You need JavaScript enabled to view it. or visit www.tmforum.org/benchmarking.