The digital revolution is developing fast – forcing major changes on the telco sector. An industry that has regularly been at the forefront of innovation, and a conduit for new tech and new software, is under threat by some of the very services it carries.
‘Over the top’ services (OTTs) like Skype, WhatsApp, Viber and so on have mastered user-friendly interfaces whilst providing a free way to make calls and send rich media messages. What does this mean for telco’s revenue models? It could be a serious challenge, but we believe telcos still hold an advantage, as OTTs lack a holistic proposition and ability to establish strong customer relationships.
For many telcos, the opportunity is there to develop a real customer connection within an omnichannel brand – making use of the continuity of rolling contracts and pay-as-you-go services. However, our survey measuring customer attitudes showed that telco brands are some way off, with nine out of ten customers perceiving telcos as utility providers and only 9 per cent of customers claiming telcos are the best industry when it comes to delivering services that meet their needs.
A customer-focused transformation, embracing constant change and the strategic development of new capabilities will enable telcos to break free from the 'utility' label. This involves developing a more personalised experience with a data-led approach, to allow for personalised and conversational interaction. Strategic partnerships and acquisitions to provide the platform for consumer access to third-party content and digital services is another way to add value, with video subscription partnerships, smart home services, IoT and personalised transportation all on the rise.
Read the full story on Telecoms Tech News.