Strategies for Telcos to drive the digital economy Part 1
In an ever-changing state of communication, innovation has become quintessential force that is driving the digital economy. Looking at the current trends, every organization wants to go digital. Being digital holds different meaning for different organizations based on the nature of their business.
But when it comes to the telecom world, going digital is more of a catchup rather than a race to be a pioneer. A lot of non-telco players are already digitalized from day one, and that too by using CSP’s platform and customer base. Rise of OTT players and other disruptors have done a significant damage to the traditional voice and text business as well. The consulting leaders such as Ovum and McKinsey predict the success of OTT players in capturing a significant share of telco services.
As the number of years ascends, the revenue graph takes an inverse fall and this analysis makes it important for CSPs, who have the best of world resources in the form of capital, customer base, infrastructure and brand name, to start doing things differently by shifting their focal point from just a traditional to a mix of traditional and digital services. Now is the time for the CSPs to take the process of metamorphosis seriously.
(Based on GSMA figures,) The period starting from 2016 to 2020 will witness substantial ballooning of the data and connectivity indicating clearly that digitalization is going to play a pivotal role in service providers growth and thus will help in balancing the loss incurred due to reducing revenues from traditional services.
The transition from communications service provider (CSP) to Digital Service Provider (DSP) cannot be a quarantined approach. It requires partnership with innovators/disruptors to bring in new services and experiences. Confederation of progressive vendors with digitalized vision is indispensable in providing solutions that can support this transition. CSP to DSP transformation approach cannot be concentrated around only new revenue streams. Industry experts have defined DSP as a service provider whose, not only services, but also operations are under the single umbrella of digitalization. One who provides services as well as operations, both digitalized.
We have a strong view that there are lot other areas which are still left untapped.
Looking at the current scenarios, there are 6 key strategies that are listed based on the idea of helping CSPs in increasing their revenues by bringing innovation and creativity in their existing services, acceptance of new technologies, sustaining demanding customer base and reducing operational & transformation expenses. Below is the list of our 6 key digitalization strategies that are recommended for a progressive CSP during its transformation.
In my next blog I will elaborate on these strategies in detail and discuss how it will help CSPs to transform themselves into DSPs and thus help them to drive the digital economy. Stay tuned!
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