The New ICE Age, PWC Reports On The Information, Communication And Entertainment Markets

Considering the current turmoil of the technology, media and telecoms sectors, PWC looked at the potential investment into these sectors and potential growth over the next decade. It also considered the barriers to growth including regulator issues, the capabilities of incumbent and emergent operators and the ability of equipment manufacturers to both support the demand and cope with the debts incurred when operating in this sector.

The report draws several conclusions regarding the ability of these markets to haul themselves out of the slump and re-establish growth patterns but primarily operators must begin to focus on the individual and on value creation or risk falling behind.

PWC also believe that the incumbent operators in these fields will not be able to rely on legacy to survive. Innovative services and applications are key to the success of many industries within the ICE sector as is competitive pricing and making the right partnerships within the industry.

PWC Executive Summary

The information, communication and entertainment (ICE) markets have historically been more distinct than interrelated.

• This will be rapidly reversed by technology, regulation and open competition, powered by £60bn of investment in mobile and broadband network rollout in the next decade in the UK alone. It will also be enabled by the huge potential for markets to work better to meet underlying customer needs
• This will lead to an ICE value chain focused much more strongly around an ever more connected individual and less around product defined markets.
• This will change fundamentally the market and competitive context for every player forcing re-evaluation of market role, competition and strategy, and putting a premium on being able to transition and implement rapidly. No legacy strategy will suffice.
• Horizontal strategy will be as critical as vertical strategy. ICE markets will become more open and interdependent not just among themselves, but with other industries; financial services, utilities and retail in particular.
• There will be a new era of bold moves and alliances to form the key competitors of the future who will have to meet stringent requirements for leadership ? serving 5m+ customers, operating the most effective 2-3 networks or managing the top 5% or so of content.
• No one currently has everything it will take. New demanding levels will be required in a set of convergent capabilities ? Innovation and Proposition Development, Brand and Reputation Management, Alliances and Partnership Management, CRM and Personalisation, Digital Asset Management, and Integration.
• Next to the individual a new value chain role will start to emerge. ?Personal Interactive Services Manager? (PRISM) spanning the ICE space and connecting the individual to the interactive world.