Why a ‘Telecoms Renaissance’ could spell a revival of fortunes for telcos and their customers
In our previous posts, we shared new research findings that painted a very sorry picture of the telecoms industry. Not only are telcos struggling to grow their topline, but their relationship with their customers is also essentially on life support.
With a huge mountain to climb, how can the industry protect what it has built and invest for the future? It is time for a ‘telecoms renaissance’, a revival of the culture of innovation that created the industry in the beginning. Here’s how the renaissance can shape the future of the industry.
Using technology to reverse the industry’s fortunes
In our research, 54 percent of our respondents recognized implementing new technology as a top priority. This is an encouraging sign, but the devil is in the detail. What technologies can help telcos break away from the past and step towards a more prospectus future?
Virtually all the telecom executives we surveyed (97%) pledged to make immediate investments to back-end infrastructure within the next 12 months. Transforming a legacy stack that was built-out over decades is extremely costly and cumbersome, so operators should consider moving to an entirely cloud-based model, which is easy and cost-effective to maintain.
As well as back-end digital transformation, there is work to do in service delivery too. 5G has been earmarked as the most important part of the plan for future strategies, with 48 percent of telcos saying this will be their primary focus going forward. This bodes well since a resounding 94% of customers place good connectivity as the main requirement when looking to switch providers.
Reinvigorate organizational culture
New technology alone cannot transform an entire industry’s prospects. Organizations must also change their culture to ensure they’re ready to embrace the future.
Just as with the rollout of new technologies, the new culture must be built around flexibility and agility. This includes rapid decision-making and project management applied to all departments. As tempting as it may be, transformation cannot be ‘outsourced’ to an innovation team. Instead, it must be instilled throughout the entire organization, from procurement to quality assurance right the way through to customer service for it to be effective.
For too long, telcos have survived by having deep pockets and a shallow pool of competitors. Both those market dynamics are shifting and soon they won’t be enough to prevent customers from going elsewhere. With other technology industries delivering services to customers digitally, telecoms are starting to look like the awkward parent at a university house party.
The good news is that by moving towards a much simpler operating model and reinventing their back-end IT, operators can begin to deliver new products to customers in an easy and cost-effective way.
Likewise, savings from reducing expensive maintenance costs can be channelled towards consumer research or rolling out new digital channels.
Survival of the revival
With investment in the right areas, new technologies and a growth mindset - the industry can reinvent itself. And while this reinvention might seem like an uncomfortable process now, it is absolutely vital and also irreversible.
There can be no going back once the changes have been made. The consumer of 2021 has high expectations, and they expect them to be met, time and time again.
So, are you ready for the renaissance?