More than 80 per cent of the telecom executives from the SAMENA region believe their future success and growth depends on making fundamental changes to their business and operating models, said a recent report produced by management consultants A.T. Kearney in conjunction with telecom association, the SAMENA Telecommunications Council.
The report highlights the importance of mastering customer retention and customer base value management to sustain returns. Diversification and development of new businesses is becoming increasingly important with 85 per cent of executives surveyed affirming that developing new business is critical to their companies’ success.
Growing ICT revenues
Less than one-quarter of executives believe that content or digital services will be important, while more than 80 per cent believe ICT-related revenue will increase, with the largest potential expected in mobility, cloud and data centre services.
To sustain competitiveness, telecom operators will continue focusing on operational efficiency (e.g., network, IT, overhead). The key driver is the understanding that significant investments are needed to bring commercial operations into the digital age, with upgrades to the customer experience such as support online sales, self-service via apps, etc.
Marc Biosca, Partner, A.T. Kearney, said: “The customer is at the epicentre… A differentiated and superior customer experience is a top priority for long-term success. New customer journeys now must include ‘positive surprises’ at all touch points.”
Executives point out that partnerships are essential, especially to gain access to different skills required and to ensure fast time-to-market while maintaining a lean organisation.
Across the region, establishing local ICT solution capabilities is still work-in-progress. Only 30 per cent acknowledge they have them in place, while most are at the planning phase.