Top 10 risks in telecoms: mitigating the threat

Mitigating the threats to operators

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1. Failure to shift the business model from minutes to bytes

As value shifts from minutes of usage to volumes of data, operators need to move away from their legacy strategies focused on customer retention, which have had the effect of commoditizing the value of minutes and bandwidth in customers’ eyes.

Operators need to target revenues from new services that tap into rising demand and master a wider array of charging models to monetize their services.

Operators are responding by:

  • Revisiting pricing approaches
  • Altering the business model to support new roles in the value chain

2. Disengagement from the changing customer mindset

Operators need to respond to fast-changing customer expectations to fight off the competitive threat from over-the-top providers.

This will require operators to communicate the underlying value of the network and the sources of added value to differentiate their offerings in new service areas. Innovation in the service model could also be used to build brand loyalty.

Operators are responding by:

  • Improving customer communications and maximizing brand trust
  • Adopting the OTT mindset in new service areas
  • Improved segmentation to isolate specific customer demands

As value shifts from minutes of usage to volumes of data, operators need to move away from their legacy strategies

3. Lack of confidence in return on investment

Tight capex control can limit operators’ ability to grow new services quickly. They need to maintain their commitment to investing in growth opportunities, while tracking technology and consumer developments closely to ensure they target their financial investments in the right areas at the right time.

Operators are responding by:

  • Extracting more value from suppliers
  • Reducing network duplication
  • Educating the market on a shifting network landscape

4. Insufficient information to turn demand into value

To drive profitable customer propositions and improve their time-to-market for new services, operators need accurate, timely and comprehensive business intelligence and customer analytics, underpinned by aligned an integrated operational support and billing systems.

These elements enable operators to improve decision-making, helping them understand customer changes before competitors, and allowing them to reuse network data in collaborate partnerships.

Operators are responding by:

  • Taking a holistic approach to business intelligence improvements
  • Taking a lead on predictive analytics
  • Turning big data into a new revenue stream

5. Lack of regulatory certainty on new market structures

Uncertainty over regulators’ approaches to new market structures is undermining operators’ willingness to invest. It is increasingly crucial for governments and regulators to adopt pro-investment policies for operators to form workable stances on a range of issues, including the increasing interrelationship between fixed and mobile policies.

At same time, all these groups must work together to achieve greater clarity over regulatory approaches.

Operators are responding by:

  • Engaging more collaboratively with policy-makers in core service areas
  • Managing compliance demands in new service areas
  • Maintaining workable stances on net neutrality

Click here to read how operators are responding to risks 6 - 10