The world is developing at a rate of knots, and we are entering a phase where there is an enhanced inflow of data. Looking over this data revolution has put extra pressure on telecom operators to perform well, and give the requisite service. To say that these are interesting times for all telecom operators would be a bit of an understatement, because the era that we are in calls for a lot of added feasibility from telecom operators. Telecom operators are in the midst of numerous interesting breakthroughs, and there is now additional responsibility on them to deliver the goods.

On one end, technology is changing at a rapid pace, and keeping up with it requires a lot of efforts, on the other hand, competition is high, and margins have become thin. Besides this, numerous over the top (OTT) players have jumped into the market, and pose as serious contenders for getting the desired market share and revenue. In short, the telecom operators in the market today have to realize the challenges, and alter their modus operandi, because not changing with the times will ultimately leave them in a tight corner. Telecom operators have thus got to reinvent themselves as service providers, and give users the enhanced experience they are looking for.

Challenges Facing Telecom Operators
There are numerous challenges being faced by telecom operators across the globe. Not only do these challenges serve as a hindrance in what telecom operators are doing, but they also limit the growth that these operators want going into the future. Here we look at some of these challenges and how they impede the growth of telecom operators.

The Decline of Traditional Value Added Services
Perhaps one of the biggest concerns troubling telecom operators is the decline of traditional value added services in the market. With added features and enhanced feasibility, users now expect the best of the best, which means that traditional features don’t make the cut anymore. Keeping in mind the requirements of the users, one can now see an increase in the number of Over-The-Top players in the market. These over the top players have taken center stage and provide all users with the feasibility and speed they require.

New age digital services seem to have overpowered the traditional services being provided by telecom operators, and users are inclined towards using them. Some interesting statistics shedding light on this issue are:

  • SMS represents less than 10 percent of all traffic seen globally. Users, or the end customer, has started going for other means of communication, and SMS doesn’t make the cut anymore.
  • Telecom service revenues will be $702 billion by 2021, which will be less than the $751 billion revenue made by over the top services during that year.

Considering the growing use of technology and changing customer experience, it is necessary for telecom operators to reinvent themselves as digital service providers. While operators currently are aware of all the latest innovations being made in communication and technology, they persist with the same tried and tested model for success. The mere fact that they don’t want to get out of their comfort zones can come and haunt them later. This approach is changing now, as telecom operators are realizing the fact that they need to keep up with the developing digital trends and customer preferences.

Problematic Model
The business model for most of these telecom operators is based on a problematic structure that can hinder their progress going into the future. Telecom operators have to realize that to jump into this era  they need to step out of the generic pricing models currently being offered to clients. This includes providing flexible charging options and ensuring content monetization.

The absence of flexible charging, coupled with the lack of personalized content, serves as a hindrance for customers opting for a telecom operator. The lack of a proper charging plan, customized according to a customer’s need, may turn customers down and they wouldn’t proceed with the deal. On the contrary, personalized content and charging plans will be received in a better manner, as customers will get a chance to experience better performance and more personalization. Customized content is the need of the hour, and if it is provided, customers won’t have anything to fret over.

Telecom operators now need to achieve steady growth, while simultaneously enabling a single touch point for all operations, settlements, and partners. Moreover, the provision of unified communication policies for customers across different services is also extremely important. Opting for Digital Business Management seems to be the only plausible option worth proceeding forward with, in the face of these challenges.

Why Digital Business Management?
There are numerous reasons as to why telecom operators should opt for digital business management to be a part of the future. A digital business management platform can assist any telecom operator in the following ways.

  • Identifying relevant services: A digital business management (DBM) system will identify the relevant services needed for targeting any appropriate target group. This will help create enhanced customization meeting the needs of every specific target group.
  • Flexible Charging Methods: Flexible charging methods, as we talked about earlier, are the need of the hour, and telecom operators need to move towards them. A DBM system will pave the way for flexible charging through convenient systems.
  • Gathering Customer Insights: Customer insights are relevant in every industry, especially for telecom operators. A DBM system will unearth these relevant insights and help with customer acquisition. This will reduce the cost of acquiring new customers in the long run, and may put an end to high sums being wasted for getting new customers.
  • Protection of Intellectual property in the long run for all parties involved.

How DBM Works
DBM works in an efficient manner to help simplify partnerships and increase the efficiency of different touch points.

Making Sense of Complex Ecosystems
Telecom operators can now get a clear understanding of the global content ecosystem. The overall telecom ecosystem is simplified through the use of an end-to-end service ecosystem. This end-to-end ecosystem includes services procurement, usage reports and analysis, services operations management, and programming and discovery.

Mapping Customer’s Persona
It is extremely necessary to have a customer’s persona before you create customized services for them. A DBM system will help map a customer’s persona, so that you can get to the processes that matter in the long run.

Ensuring Cost Efficiencies
A DBM system will ensure certain cost efficiencies by helping you target the essential channels required for reaching out to customers. This eventually expands your business, and helps you grow the range of your services. Moreover, content monetization through direct carrier billing will decrease costs and increase efficient price charging.

A one size fits all approach is not pertinent any more, which is why telecom operators need to redefine their services and work towards achieving a better overall service. To this end, it is necessary that they get a DBM system that ensures the move towards a revamped business model that achieves customization and has room for growth in the future.

You can get more information on the current technology ecosystem and what is required of telecom operators by downloading the full report here (

Ronald Van Loon

Ronald Van Loon

Ronald van Loon, Director at Adversitement a data & analytics consultancy firm, and Advisory Board Member & course advisor for leading professional certification training company Simplilearn, is a frequent influencer & public speaker for...