JUST like in 2014, delivering quality service to customers will remain the main growth driver for telecommunication companies (telcos), according to an executive of Singapore-based Amdocs Pte. Ltd. However, Alita Wong, Amdocs Asia Pacific head of marketing, said the growth is hobbled by how telcos manage a silo-based structure.
Telcos need to streamline complex environments to enable rapid time to market response and a silo-based infrastructure wouldn’t cut it, according to Wong.
“Bandwidth must not be compromised; that’s the main consideration. It is equally important for telcos to give a zero cost to the consumers to retain their loyalty.”
According to her, it is important for telcos as service providers to build customer loyalty to offset the loss of revenue to over-the-top (OTT) players, launch new revenue streams and business models and, in the end, becoming a telco-OTT.
A telco-OTT is a concept describing a telco delivering fee-based services over public Internet, the telco’s existing Internet Protocol-Virtual Private Network (IP-VPN) or a customer firm’s own IP-VPN.
Wong said it is vital for service providers to provide personalized experiences and combine network management and customer data.
To respond to the demands of the customers, Wong said telcos need to optimize their networks and bandwidths to ensure their competitiveness in the market.
“That, we think, is the best investment strategy for them.”
In the hyper-connected world, mobile financial services, Internet of Things and voice over long term evolution are the new areas of growth for telcos, according to Wong. The demand for more data will require new sets of tools for business analytics leading to a more personalized and contextualized interaction, she added.
Wong said Amdocs believes these new tools will accelerate business value, optimize business processes and reduce costs.
She said that, aside from fierce competition from traditional and OTT players, the other four challenges telcos face are intensifying mergers, acquisitions and consolidation, changing customer expectations, regulatory intervention and technology and innovation acceleration. “We will also expect ‘coopetition’ (cooperative competition) among traditional business rivals to ensure presence in the market.”
Rizal Raoul Reyes
Image credits: Roy Domingo