4 Trends in Digital Monetization
In the immortal words of Ferris Bueller, “life comes at you fast.” When it does, it often comes with constant and major changes. This idea applies to the telco world as well.
Each generation of communication technologies has challenged the previous revenue streams and business models.
Text and voice are no longer the revenue generators they once were. Data and digital services have become an increasingly important part of telcos’ portfolios and led to monetizable opportunities. Today, new cases surrounding 5G and IoT are emerging, like autonomous vehicles and connected homes. These advancements are driving exponential change and complexity in the telecom ecosystem.
Further change is on the horizon, but let’s pause and take a look at four significant trends happening now in the world of digital monetization.
- The Need for Speed
Remember when you needed to search for the TV Guide to check when you could catch your favorite show or calling a restaurant to make a reservation? Today, consumers expect information will always be available on-demand. They expect to have access to the services they want anytime, anywhere, on any device—and telcos must incorporate these philosophies into their business.
When launching new services, operators need to deliver services that are easily accessible through self-service. Both consumers and operators benefit from the use of zero-touch automation to avoid needing to contact a call center. To recoup considerable 5G investments, CSPs will need a scalable monetization solution place to quickly launch new services and offers and get to market faster than competitors.
- Keep Calm and Cut Costs
As the communications market becomes more and more commoditized, operators must rein in costs and mitigate risk. Aging, in-house legacy systems are not only overly complex but costly to maintain. To avoid undue risk and keep costs down, CSPs need to move toward more reliable and adaptable solutions.
For example, we helped a customer replace 40 legacy systems with a single, consolidated solution to manage their enterprise customer base. This allows them to significantly cut costs, reduce risks and prepare for the future. And operators will need to be agile and responsive to demand, transforming their delivery models with methodologies like DevOps and technologies like cloud.
- Head to the Cloud
As SMS and voice revenues continue to decline, operators are under immense pressure to expand their offerings and maximize profitability. Aging legacy systems hinder innovative new offerings, which is why CSPs should move toward cloud-based SaaS models to support agile and sustainable use cases.
The cloud offers superior security, scalability and cost-efficiency. CSPs can move to the cloud by starting small and focusing on a section of the organization to begin the transition. From there, they can experiment, learn and evaluate what works best for their business, then expand to the rest of the organization.
- The Enterprise Opportunity
Breakthroughs in automation, analytics, robotics and data-intensive processes are reshaping the telecom industry. To be successful, these new technologies need both fast and reliable data communications and a sprawling network of partners. Additionally, these partner relationships will need to be managed, and provide support for sophisticated settlement and revenue share models.
CSPs need to think inventively to be valuable to enterprise customers, beyond delivering core offerings like 5G slicing. Today, more than half of all CSPs generate 90 percent of their revenue from B2C. However, change is coming, as over 75 percent of CSPs expect more than half of their revenue to come from B2B in the next five to 10 years.
For telcos, the future is promising—and the stakes are high. Monetization stacks will play a leading role in telco success, with CSPs needing solutions that support modern, sophisticated and dynamic offerings.
To learn more, check out my recent interview on Mobile World Live.