The telecommunications industry is facing increased competition. This is coming from within the industry, as telcos duel it out, fighting for subscribers in oversaturated markets. It’s also coming from outside the industry, as companies in adjacent industries like social media and technology begin to move into the space.
Telcos have seen cash flows and revenue continue to drop since 2010. Companies hoping to become more competitive and alleviate this squeeze on margins need to be able to create more value for customers.
Luckily, major advances in network equipment, artificial intelligence, data analytics, and other technologies have given forward-thinking companies massive opportunities to gain a competitive edge. With the latest hardware and software, telcos can achieve breakthrough cost savings while increasing their scale.
But whether or not telcos can capitalise on these opportunities will depend on whether their company has a culture of innovation. Executive and business owners need to be able to take bold action, embracing cutting-edge technology and looking for ways to cut operating costs.
Here are a few ways telcos can become more competitive:
Network Management
Ground-breaking technologies are helping telcos do more with less. Network equipment continues to grow more sophisticated, and the companies leading the pack are using big data and analytics to make smarter decisions about deploying capital and adjusting networks to make sure they maintain service quality.
Network technology is continuously improving, and we can expect advances to accelerate in the next few years as 5G takes off. At the same time, telcos should avoid delaying making changes and using superior technology.
Streamlining Operations
Telcos lag behind other industries when it comes to doing business digitally. They typically make smaller sales online compared to retail banks and insurance companies. Closing this gap will allow them to boost their financial performance and create a competitive advantage.
Digital technology allows telcos to automate operations, making them more productive and leading to lower costs. This includes providing customer service online and through apps to improve customer satisfaction. Vodafone UK is already using TOBi, a chatbot powered by artificial intelligence. This allows the company to offer much quicker service over the web.
Telcos can also use analytics to see how they can retain more of their subscribers while spending less. By running huge sets of customer data through machine learning models, companies can identify which customers are most likely to switch providers or cancel their service. They can then immediately respond with tailored offers to those customers.
Switching to Off-Grid Power
Many telcos are currently using diesel, particularly for telecom towers in remote spots. But diesel prices continue to rise and electricity prices from the grid continuing to fluctuate. Many companies will find that choosing an alternate energy source can help them become more competitive with both other telecommunications companies and utility companies.
Hybrid power combines different storage options and sources. These include wind, solar, hydro, and chemical options, often with a rechargeable battery. If you’re hoping to become more competitive next year, we can help. Get in touch to learn about your EFOY ProCube, which uses both solar and hydro power, ensuring your customers will enjoy reliable, uninterrupted service.
