Top Scenarios of Telco Companies Development by 2030
In this Article:
1.4 A Vendor Brand
The accelerating pace of change in the telecommunications industry challenges various spheres of our lives such as politics, business and social life. Telco companies with other investors feel the pressure from existing and developing market leaders challenging the traditional business model. Telecom companies have many opportunities to win the client’s sympathy, for example, by positioning themselves as data privacy protectors. According to the Deloitte business model of the future, 43% of consumers are eager to share their personal data in exchange for special offers, and 39% are ready to do it if the company provides better customer service. Thus, the market competition is pushing telcos to step outside traditional business practices and try out innovative models using scenario designs of the future.
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The Engineer Strikes Back
In this scenario, telecommunication companies take over all the network technology processes and customer interactions. They use their technical background to organize innovations and possess the resources to operate their assets. By taking care of customer relationships, telco companies control the whole value chain. The main advantage of this scenario is the connectivity of hardware devices made by different manufacturers via the telcos’ platforms allowing people to enjoy international culture without additional costs. B2B customers can use telco services as the single network provider for all IoT solutions. At the same time, due to the strong urge for innovation, telco companies need to develop successful R&D initiatives with a short-time-to-market approach to close the customers’ gaps for new products.
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Telcos own and control the technological part of the value chain connecting the vendors with OTTs (over-the-top communications such as voice, text and video) that maintain the end-user experience. In this scenario, telco companies have to work as a “smart pipe” provider because they can offer only large-scale products to OTTs. Network operation and control are outsourced to field-service partners. As network taxation is essential to funding its expansion, telcos need to approach political decision makers and acquire talented lobbyists.
The Virtual Telco
Telcos stay the main customer relationship holders but transfer tech domain independence to vendors that become new field players. Vendors also facilitate IoT development by outsourcing network ownership and customer service to major tech companies. Telcos know the customer demands and behaviors, so they use this knowledge to approach clients on the most appropriate channels offering innovative products. Strong customer segmentation maintaining price differentiation should be offered to suit customers’ needs. Despite network operations being controlled by partners, telcos have a deep sense of network issues while operators maintain troubleshooting and problem analysis.
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In this scenario, telcos are removed from customer relationships, domains and tech segments. Instead, they serve as full-scale sales and service teams of their primary tech companies for B2B customers. The quick growth of IoT forced large networks and technology players to take over the network capabilities from telco companies in the market. To comply with data protection acts, as CCPA and GDPR, telecoms’ parent companies are limited in using customers’ information. Thus, customers are contacted by OOT and device manufacturers that also promote their new products and services. Telcos are not investing in network development, whereas customer investments are limited due to fewer B2B clients.
The Bottom Line
Telcos should define their future role in network infrastructure, customer relationships and shareholder value to grow and survive as leading companies. Based on current trends, the entire business model is being challenged. Thus, telcos have to build a flexible development strategy today to go beyond competition tomorrow and implement innovations that will become the basis for achieving long-term business goals.
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