The telecom industry has evolved and changed quite dramatically over the years. It is no longer enough for communication service providers (CSPs) to just offer voice or data plans. With the market becoming increasingly complex and diverse, CSPs must rethink their strategies to stay relevant and competitive and serve the demands of a digital-first world.
challenges CSPs face in the new era
There are a number of challenges that CSPs are navigating. They are being forced to rethink their business models given the stiff competition from digital native companies that offer far more agile and customer-centric services. Their profits are being eroded by companies like WhatsApp who provide free or low-cost messaging that directly competes with the core voice and SMS offerings provided by CSPs. Customers also expect seamless and personalised services and experiences that reflect the latest in digital innovation. Further, many CSPs still rely on legacy and siloed infrastructure, which makes modernisation and digitalisation difficult. Although artificial intelligence (AI) holds a lot of promise, CSPs are facing challenges while trying to effectively integrate AI with their systems. The main obstacles are unclear Return on Investment (ROI) and slow adoption in core networks. Let’s take a look at some of the digital-first strategies that CSPs need to adopt to make a mark in today’s changing times.
embrace personalisation
Personalisation is not an option anymore — it is a key differentiator. The focus in telecom has moved decisively from products to customers. Instead of sticking to the beaten path of just selling standard packages, CSPs are now offering personalised experiences with services tailored to individual needs, customised plans and flexible billing. This involves making it very convenient for customers to access services digitally and manage, buy, or change their plans without the need to physically visit a store. CSPs can use the rich customer data available to them to leverage and embrace predictive personalisation and deliver the types of services that customers are specifically interested in.
CSPs are also using AI to predict churn, identify at-risk customers, and trigger personalised actions to retain them. A few years back, Salesforce announced the AI-powered churn predictions feature for Tableau CRM that helps CSPs retain subscribers and keep them engaged with current service offerings. AI models even help with fraud prevention by detecting anomalous activities.
data and AI as core assets for growth
The data that CSPs gather has become one of their most valuable assets. Data is what helps them track network metrics, usage patterns, and analyse customer behaviour, all of which enable CSPs to personalise services, predict needs, and improve efficiency. This data-driven, AI-enabled approach helps telecom providers stay competitive and deliver better user experiences that help retain customers.
Vodafone (Europe) has introduced “TOBi,” an AI chatbot to manage customer interactions. The organisation has also migrated one of Europe’s largest SAP ERPs to the Google Cloud to improve data handling and analytics. As per Google’s internal data and reporting, this migration to the cloud has improved response times by 12%.
5G and edge computing
Technologies such as 5G and edge computing are enabling CSPs to offer much more than the usual services. CSPs can now use these technologies to deliver industry-specific solutions and advanced offerings across an entire gamut of sectors. The rich service portfolio that extends well beyond basic connectivity can be offered to enterprises that are quite willing to pay a premium.
monetisation strategies
Monetisation models need to be upgraded to adapt to and thrive in the evolving telecom landscape. They involve moving from traditional billing to the creation of flexible, eco-system driven revenue streams.
A key shift is in the area of cloud marketplaces. CSPs are partnering with large cloud companies, software makers, and technology partners, leveraging their cloud expertise, without having to build infrastructure from scratch. This move allows them to offer and sell bundled digital services to businesses. Vodafone has signed a long-term partnership with Microsoft to provide cloud, AI, Internet of Things (IoT) and digital services to enterprises, SMEs, public sector organisations, and consumers across its markets. Through this collaboration, Vodafone aims to bundle cloud services from Microsoft along with its connectivity, IoT, and telecom services. This effectively creates a marketplace or service portfolio where customers get connectivity and cloud/digital services from a single provider. This approach strengthens customer value and opens new high-growth revenue opportunities beyond traditional telecom offerings.
CSPs are no longer limited to providing traditional telecom offerings such as voice or data connectivity. Large telecom providers like Airtel, Vodafone, and others are actively expanding into digital domains by expanding their arms into IoT, cloud, enterprise software, and Software as a Service (SaaS). This shift helps the companies stay relevant in an environment that is constantly changing by offering a broader portfolio of digital services, connectivity, and tailored enterprise solutions.
how Infosys BPM can help
Satellite and cellular networks keep people, enterprises, and devices seamlessly connected. Infosys BPM strengthens this ecosystem by delivering innovative BPM offerings such as Communication as a Service (CaaS) and Communication Platform as a Service (CPaaS), helping communication service providers modernise operations and drive automation-led transformation. The BPM offerings include inventory and asset management, payment management, cost allocation, dispute management, invoice processing, order and provisioning management, vendor management, and reporting for internet service providers.
