Digital disruption in the Telecom Industry- reinvention to stay competitive?
Telecom companies are facing increasingly tough times as digitalization is changing industry landscapes. Despite the increasing demand for network coverage, new mobile technologies, changing consumer preferences, and OTT business models are forcing telecom operators to adapt to new business models.
Today, customers have the power of a supercomputer at their fingertips, and it’s getting harder for telcos to generate added value and grow revenue despite an increase in consumer demand.
Is the Telecom industry prepared for disruption?
The development of technologies such as mobile, artificial intelligence, cloud platforms, etc. is changing the way we live and interact–some have called it the Fourth Industrial Revolution–and the Telecom industry is playing a crucial role in enabling this digital transformation. However, the role operators are playing has not translated into new value for operators themselves.
Smartphones have shifted customer preferences towards mobile platforms, and new forms of competition that have emerged are threatening operators’ traditional offerings such as voice calls and text messaging. In just a few years, tools like WhatsApp And emerging technologies like e-SIM are set to cut into large parts of traditional telco revenue sources.
Customers are no longer willing to pay much (if anything) for voice and text messaging, but are willing to pay for data to access powerful OTT tools at a low price. Telecom providers are in a unique situation: they serve as the platform that many digitally native companies depend upon, and yet, they find they must digitally transform to stay relevant. New digital services seem to have overpowered the traditional services provided by the operators. In addition to the challenges to stay competitive in the digital era, network investments towards transformation are continuously growing.
Another issue that operators need to tackle is the complexity of the structures. The business model for most operators is based on a problematic structure that can make harder the transformation. Therefore, telcos should seek innovation and new revenue streams. Old business models can no longer depend on monetizing core offerings, no matter how in-demand they might be. Instead, they should be adapted to the pace of digital transformation.
The path to transformation
Digital transformations can be challenging and complex. They not only only require the adoption of digital technologies, but also changes to corporate cultural changes and organizational structures. While disruption caused by digitalization may seem alarming at first, it creates remarkable opportunities to conceptualize new customer-focused offerings and renew internal systems that make use digital technology.
There are many approaches that telcos can explore to renovate their businesses and stay relevant. While telco executives are aware of the need to adapt to disruption, few have a clear idea of how to proceed.
Additionally, they often hold back because it can be difficult and they do not want to affect their existing businesses. But something everybody agrees on is that digital disruption is a reality in most industries and geographies; and the telco industry is no exception. CSPs need to comprehensively transform themselves to remain competitive and differentiate themselves from the competition, rather than being simply network services suppliers.
Yet, telecom operators need to achieve steady growth, while simultaneously enabling a single touchpoint for all operations, structures, and channels. Moreover, they need to offer a more personalized digital customer experience to stand out from the competition. Opting for a digital business platform seems to be a plausible solution to face the current challenges and proceed forward with it.
Why a Digital business platform?
The need for differentiation, finding new revenue streams, and serving better the customers are among the top reasons why operators should opt for digital business platforms to be part of their digital future. Ready-made solutions such as the Moflix Interaction Platform can help operators to tackle the issue of digitalization without a massive transformation project. The platform can assist any telecom operator in the following ways:
- Offering simple and fast digital customer onboarding and off-boarding.
- Automation and simplification of critical BSS processes such as customer identification, customer support, billing, and payments.
- Optimize structures and distribution channels.
- Ensuring cost efficiencies and savings.
- Orchestration of different cloud-based services.
- Gathering customer insights through the app.
- Enhance in-app customer support and the overall digital customer experience.
- Continuously improving offerings and personalization.
Contact us to find out how you can fully leverage the business opportunities of digital technology, offer an excellent customer experience, and find new revenue streams.