Telecoms’ blind spot

It’s no secret that telecommunications companies are in search of initiatives to spark new revenue streams. But recent research from the IBM Institute for Business Value (IBM IBV), co-sponsored by GSMA Intelligence, signals they may be missing growth opportunities.

To unearth potential new business for communications service providers (CSPs), IBM IBV surveyed 600 CSP executives, enterprise clients, and business partners across the globe, and more than 13,000 consumers from 14 countries. One-on-one interviews with key industry leaders helped substantiate the results and garner deeper insights into the dynamics at play.

We discovered CSPs are often undervaluing the services that both enterprise and consumer customers are most interested in.

For example, while both CSPs and enterprise customers point to IoT platforms as an important capability for the industry, they have widely different assessments of what matters most after that. Nearly two-thirds of enterprise customers say they are looking for payment (63%) or industry-specific (62%) solutions from their communications providers. But less than a third of operators are prioritizing those services.

A disconnect: CSPs and enterprise clients aren’t in sync about in-demand telecom services.

At the same time, CSPs may be overlooking options for consumers, who appear hungry for new services in addition to the standard smartphones or broadband options. Smart home products and services—from light bulbs to security systems—are leading candidates as consumers look for ways to simplify their connected lives.

Potential lies in customer care as well, as three-quarters of consumers say they are looking for omnichannel customer experiences. Boosting brand interactions with improved digital services backed by the latest artificial intelligence (AI) technology can enhance loyalty and support marketshare growth.

In-touch Telecoms dial into new opportunities

We discovered a sub-group of CSPs that have adopted a more forward-thinking approach in their quest for solutions beyond basic connectivity. We call them the “In-touch Telecoms.” They’re gaining an edge over their peers by employing:
 

• A more customer-centric focus
• A culture of innovation
• A stronger reliance on an ecosystem of business partners.

“We are always thinking: if I invest in this, is it going to have a positive impact on our customers? Is it going to be a product that solves problems for our customers?”

Miryem Salah
Chief Data Officer and Head of Digital and Transformation, Vodafone, UK

Pursuing digital transformation through technologies such as cloud computing, machine learning, and AI positions leaders in the telecommunications industry to develop new business models both within the industry and through partnerships with companies in other industries. For example, some network operators are focusing on healthcare solutions while others are testing the waters of embedded finance. Optimization of next-generation technologies also helps leaders navigate regulatory environments that can hinder cross-border solutions—a top ask of enterprise clients.

Download the report to explore the traits of In-touch Telecoms and how they’re leading the telecom industry to a future beyond connectivity. We explore opportunities in both the enterprise and consumer markets, as well as recommend actions organizations can take to recharge growth.