Sara Rasmussen: We see a much greater focus on the B2B segment
As a columnist for the largest telecom trade media in Sweden, Sara Rasmussen has appeared in the columns over the years. A clear recurring theme is how the large operators should invest more in the SME segment.
Telness Tech's CCO Sara Rasmussen sees a clear trend in 2023. The operators are starting to invest in the corporate business.
- Both through new partnerships, product launches and strategic recruitments, she says.
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How is the situation in Telecom Sweden right now?
- I feel that most major players in the industry are going through an identity-searching phase both in terms of competitiveness, customer satisfaction and growth. Share prices for telecom companies have been steadily declining for the past three years, along with the important key figure Average Return Per User, ARPU. Furthermore, it is still the case that most large operators focus on individual trends and functions rather than taking a holistic view of the business in order to be prepared for the future, says Sara Rasmussen.
What was the most important thing that happened in Telecom Sweden in 2022?
- The most important thing for us at Telness Tech is that our holding company raised SEK 85 million to further boost the international expansion. Furthermore, I think that the report from the Svenskt kvalitetsindex in the fall of 2022 contributed to many interesting discoveries. This report showed that a lack of customer service is one of the main reasons for churn and that niche operators do far better than those who try to be everything to everyone.
What did you think would happen more of in Telecom Sweden in 2022?
- I actually thought that more players would present new business plans given the intensifying competition and higher demands from customers in terms of user experience. To be more specific, I thought that more telecom companies would dare to niche themselves within certain customer segments or product categories to create a clearer value proposition. There is a large discrepancy between the Swedish quality index report and how the operators respond strategically.
What development will we see in 2023?
- I think we are already seeing a much greater focus on the B2B segment, both through new partnerships, product launches and strategic recruitment. In your series of articles on the B2B segment, you could read how all major operators are more or less investing in this segment. In 2023, I believe and hope that we will see a further focus on the smaller business segment, the so-called SME and SMB, as there is no large operator that has yet managed to capture this segment fully, as they have typically focused on larger business customers where the margins have traditionally been high, says Sara Rasmussen and continues:
- The small business customers demand a high degree of digitization, user-friendliness and self-service. Most likely, one or more operators will want to increase revenue from this segment, which will require a targeted effort and strategic partnerships. Whoever succeeds, however, will make the cake significantly larger and take market share most operators have historically neglected.
Which trend will affect telecom the most in the next three years?
- We will see further development of similar trends as last year, but there will most likely be more focus on the effect this has on the end customer. It will become extra clear both in terms of 5g expansion and migration of core solutions to the cloud. We see more and more operators talking about the application of 5g and how cloud solutions enable faster product development and lower operating costs.
Sara Rasmussen also believes that there will be more strategic partnerships between operators and software companies in the same way as happened in the banking world with fintech developments.
- The operators sit on large customer bases, but often lack the power of innovation and technical capabilities to drive product development in an efficient manner. The price war has only just begun so focus on streamlining and maintaining margins will be crucial.
You can read all Sara’s opinion pieces in Telekomidag here >>
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