ACCENTURES Dynamic Digital Consumers Survey revealed that if a global digital giant such as Google or Amazon launched an offer comparable to their mobile operator, 44 percent of respondents would leave their provider, forming a gloomy outlook for Communications Service Providers (CSPs).
The introduction of the eSIM (embedded subscriber identity module) also brings new challenges for CSPs as switching between providers becomes even easier. The survey found that 68 percent of online consumers would be interested in using a device with an eSIM with 50 percent saying it was because of the ability to switch from one provider to another more easily and quickly to get a cheaper call or data plan, accelerating the race to the bottom for data and connectivity and further commoditizing CSPs’ core business. Furthermore, competition will increase as new players enter the market by embedding the eSIMs into the devices at the point of manufacturing, bypassing the network connectivity provider and going direct to the customer.
“The traditional CSP business is becoming commoditized and as a result they must dramatically accelerate their shift into new markets or the window of opportunity will close,” Francesco Venturini, Accenture global industry managing director for media and communications, was quoted in a statement as saying. “There are opportunities ripe for the taking if CSPs invest in their core business so it remains healthy, while at the same time pivot to accelerate innovation and expand their reach to provide new digital services, offering real value to their customers.”
According to Venturini, CSPs can implement this but “they must change their operating models and break down the silos they currently work in to be able to move with the speed and adaptability required to succeed.”
The survey found that once consumers do invest in connected technology, over half (54 percent) experience challenges. Issues include being too complicated to use (14 percent), cannot connect to the internet (13 percent), the set-up does not work (12 percent), among others such as a lack of personalization, privacy concerns or customer support. Rizal Raoul Reyes
The home is becoming a connected and personalised ecosystem of services and CSPs have a significant opportunity to be that single provider to manage the ecosystem in the home.