Like so many other industries before, telecom now faces a moment of reckoning as operators come under increasing pressure from new digital-native entrants and evolving consumer preferences. With revenues continuing to decline and digital disruption on the horizon, many MNOs are left with a stark choice: innovate fast or be displaced. Read on to learn about how key digital trends are transforming telecom and reshaping the technology landscape.
Over-the-top (OTT) revenue, McKinsey & Co
OTT services like messaging and VoIP see rapid growth and cannibalize MNO revenues. At the same time, consumer spend on communication is projected to decline over the next ten years.
Skype In/Out
Growth in March 2020
We Chat
Growth in 2019
Viber Out
Growth in 2019
Zoom Audio
Growth during COVID-19
Along with growing competition from digital-native entrants, operators report declining revenues and increased churn. This makes the ability to continually launch new digital services more critical than ever before.
Telecom voice revenue ($Bln)
While the threat to telecom originated elsewhere, the real challenge is very much internal. After years of downsizing product teams and outsourcing roadmaps, many MNOs simply lack the resources, knowledge and culture needed for true service innovate in today’s highly complex technological environment. This is like showing up to a modern battlefield with nothing but muskets and bayonets.
On top of this, operators must grapple with backwards-looking metrics and a network architecture that was not designed innovation in mind. This means that when operators do try to innovate, they face an uphill battle. The result is that today most operators offer the same basic set of undifferentiated services, and compete primarily on price.
In order to overcome these obstacles and level the playing field with digital natives, MNOs need modern systems and real-time data. Relying on yesterday’s backwards looking BI reports and arcane tools will no longer cut it.
To thrive in an increasingly connected and digital world, operators need to move up the value curve by injecting networks with new capabilities, which fall into one of five levels:
L1: “Passive” — Real-time insights, call metadata and call completion
L2: “Active” — Control media based on inputs within a call
L3: “Interactive” — Live actions based on speech and/or text
L4: “Connected” — Incorporate 3rd-party service via API
L5: “Intelligent” — Leverage AI & ML to power advanced services
Sifox helps telecom operators grow revenue faster and retain customers longer by making it easier than ever to build, launch and operate cutting-edge voice, messaging and data services — all without incurring any additional cost or risk.
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