Throughout 2023, we have seen technology play a pivotal role in Telcos’ success. The changing landscape of the Telecommunications industry is characterised by rapid advancements and innovations, and the effective utilisation of technology is at the centre of this. Technology is no longer just a tool for operational efficiency but a strategic enabler that positions Telcos at the forefront of innovation and success. Steven Sutherland, the Divisional Executive of Telecoms and Shamit Makan, the Divisional Executive of Enterprise Performance Management at Adapt IT, unpack this exciting topic and identify four technology-based trends impacting the industry. Click here to watch the video of this interview with these respected experts.
A Need to Focus on Differentiation
The Telecommunications industry is highly competitive due to several factors that drive innovation, technological advancements, and market dynamics. The increasing demand for connectivity and communication services in both personal and business spheres has fuelled intense competition among Telcos to capture and retain customers. As technology evolves rapidly, Telcos must continually invest in diversification and differentiation to stay at the forefront of innovation, creating a constant race for the latest and most efficient solutions.
How are diversification and differentiation providing Telcos with a completive edge? The answer lies in creating new revenue streams that offer customers more. In recent years, Telcos have focused on providing customers with coverage and uptime. Customers’ demands have changed, and they now assume that their coverage is optimum and stable. Telcos now need to look at ways to differentiate themselves from just selling optimum coverage, as all competitors offer this. Instead, Telcos need to look at ways to enhance cost-effectiveness and efficiency and provide complete mobility and connectivity in the best possible way.
Over and above this, the traditional Telco business model is changing. Telcos must transition and look at diversifying their products and solution sets to create new revenue streams, drive revenue, and increase profitability.
How do Telcos do this? The answer lies in partnering with technology providers who know the industry, the challenges and pain points and who can help Telcos effectively utilise technology to deliver new and innovative offerings, services and solutions to their customers.  Â
Adding Value Drives Revenue
There is no doubt that Telco’s most valuable asset is its subscriber base, especially considering that it takes a lot more effort to acquire a new customer than to retain a customer. It, therefore, makes sense that if you create additional value for your subscriber base through differentiated product offerings, you can drive revenue growth. Â
The question is, how are Telcos doing this? The answer is to offer customers services outside the usual Telco service space. We have seen a dramatic shift in the industry, especially with Telcos partnering with software providers to create services centred around FinTech solutions like Mobile Wallets, USSD and SMSC services, and more.
By providing additional value through the provision of these differentiated services, Telcos create an opportunity for upselling and cross-selling. Telcos can recommend complementary services or upgrades to existing customers, increasing average revenue per user (ARPU).
Providing value-added services also contributes to enhanced customer experience. Whether it’s through improved customer service, personalised offerings, or innovative features, a positive customer experience fosters brand loyalty and reduces customer churn.
By offering innovative, differentiated services that aim to enhance customer experience and adapt to market trends, Telcos not only retain customers but also increase revenue. Providing added value in the form of these kinds of services is a strategic approach that contributes to long-term business success and overall customer satisfaction.
Businesses Need to Be Technology Companies
Digital transformation has completely shifted the industry and how Telcos conduct business. In today’s digital world, technology is not just a nice to have. It is a necessity, so much so that businesses like Telcos must become technology companies. What do we mean by this?
Telcos need to become businesses that utilise technology across their operations. Technology should be used in every aspect of the business. This includes utilising Artificial Intelligence (AI) and Machine Learning (ML) for network optimisation, data analytics to improve customer service levels, automation to enhance operational efficiency, advanced analytics to improve revenue and billing management, IoT sensors for predictive network maintenance, analytics for data monetisation and the list goes on. Â
By strategically adopting and integrating these technologies, Telcos can enhance efficiency, customer satisfaction, and overall business performance. It’s vital for Telcos to continuously evaluate emerging technologies and adapt their strategies to stay competitive in today’s rapidly evolving Telecommunications industry.
Co-Creating Partnerships Are Driving Marketshare
There is one common thread across all of the trends mentioned above, and this is the use and implementation of technology. One of the most significant challenges related to Telcos and the use of technology is that the technology solutions on the market are often a one-size-fits-all approach.
From an Adapt IT Telecoms point of view, we understand that no Telco is the same. Each business has its own unique set of goals, objectives and operations. It therefore makes sense that the technology that Telcos use should be fit for purpose. But how does a Telco ensure this? The answer comes from co-creating partnerships with technology providers, like Adapt IT Telecoms, that drive technology innovation and increased market share.
Here at Adapt IT, this is our focus. We understand the industry and work with our Telco customers to create technology solutions that meet their specific challenges. A Telco’s proficiency has always been providing reliable and stable networks, while our proficiency lies in the ability to help Telcos take the next step by delivering technology that will allow for diversification, enhanced operational efficiency, and the creation of new value-added product offerings to strengthen competitiveness and increase revenue.Â
We listen to our customers and work together to become co-creators of solutions that answer our customers and industry-related challenges while finding ways to return value.
Conclusion
From the above, it is clear that technology plays an essential role in the success of Telcos. Through collaboration with industry-leading technology providers, like Adapt IT Telecoms, Telcos can utilise technology to enhance differentiation, competitiveness, and revenue. These co-creating partnerships allow Telcos to rapidly adopt cutting-edge technologies, improve service offerings, and meet evolving customer demands in the dynamic Telecommunications landscape. Over the course of 2023, we have seen that the implementation of technology ultimately enables Telcos to stay ahead of the competition, provide unique value propositions, and generate new revenue streams through innovative services and improved operational efficiency. The reliance on technology within Telecommunication is not something that we expect to slow down but rather ramp up in 2024 and beyond.
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Steven Sutherland experienced Adapt IT Divisional Executive, dynamic business leader for their Telecoms Division with a demonstrated 25-year history in the telecommunications and IoT sectors. Strong global marketing, sales, and business development professional with 15 plus years focused experience in the Southern and Rest-of-Africa markets and a unique blend of entrepreneurial spirit combined with a passion for both technology and business.
At Adapt IT Steven is responsible for building and growing the Telecoms Division on top of its industry-proven software competencies including but not limited to Customer Experience and Self Service, NextGen VAS, IoT, FINTECH, and Advanced Analytics. Steven is always looking forward to an opportunity to demonstrate the value that his 20 plus years of experience in these disciplines can bring to your business
