Nordic SME Focus Drives Revenue Growth for Service Providers

While some operators around the world are struggling to stem revenue decline, others are enjoying happier times. Take Telenor, for example. Although it’s a challenging marketplace, Telenor Group reported revenue growth, unlike many of its peers.

On closer examination, it transpires that the Norwegian operations account for 25% of group revenue. Given that Telenor has 150 million subscribers globally, with only 3 million in Norway, something extraordinary is clearly going on.

What then, is the difference between Telenor Norway and all the other properties around the world? The answer comes from a number of factors, but a major contribution is the significant investment that Telenor has made into services for the SME and enterprise market.

While this remains a small part of the overall market in Norway – at least in terms of numbers of subscribers – it’s rapidly becoming one of the most profitable and fastest growing sectors in terms of revenue. This has been recognised by other providers, with most of those in the market offering a range of dedicated SME and enterprise services. Typically, these involve a mobile PBX solution and some specialised inbound call management services.

But from such investments large returns can be made. It’s not just Telenor Norway that has reaped the benefits. The other players have also enjoyed notable success and continue to invest in the market. It seems there is considerable appetite for such services and also room for further growth.

And, it’s not simply a case of going after customers with the highest ARPU. Telenor and its peers have also adopted strategies of diversification, seeking to attract SMEs, including those with 10 or fewer employees, which make up a large proportion of the marketplace. Such tactics ensure that all organisations can be catered for and the needs of all business subscribers are addressed.

Instead of chasing declining revenues from consumer markets, challenged by free OTT services, Telenor and its local peers have made a clear strategic decision. While continuing to deliver outstanding consumer services and products, Telenor et al have chosen to invest in a market that promises better returns and in which they can clearly stake out a role. This strategy is delivering. Unlike many operators, they are driving revenue growth from their home market with a clear focus, strategy and execution.

What’s more, they have specifically orientated themselves around the needs of a diverse set of customers. Not all businesses are the same and few operators have really considered the needs of the SME market to any great extent. What Telenor and its peers have done is to orientate the products and services towards all prospective business users, not simply those that offer an easy route to hundreds of customers in one account.

Norway isn’t so very different from other countries. It is an almost universal truth that the SME market offers rich potential for service delivery. It’s known that the vast majority of private businesses come from the SME market. Why don’t other operators seek to emulate this success?

That’s where Gintel can help. We know what it takes to plan, launch and succeed with enterprise and SME focused services. Why not talk to us to see how we can help you find growth opportunities?

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