Operators are searching for growth – B2B is part of the strategic solution
Mushrooming data consumption, enabled by costly investments in LTE infrastructure and networks, has not been matched by a proportional rise in data revenues. This is a common challenge that MNOs are struggling to address. As a result, B2B services have become a strategic focus, as MNOs search for new sources of growth.
We’ve heard from many MNOs recently that, having invested in 4G and VoLTE, have delivered an outstanding network and seen an associated rise in data consumption. However, for many this hasn’t been accompanied by a proportional rise in revenue. LTE delivers but it doesn’t necessarily deliver revenue growth. Put simply, while network investments bring benefits, the correlation with increased revenue isn’t straightforward.
This has led these same MNOs to investigate ways in which they can find alternative sources of growth. This is a strategic priority and has senior-level focus. As a result, many of our customers are choosing to focus on the business market, because business users typically offer better long-term revenue potential and tend to remain with a provider for lengthy periods. They do not typically churn with the frequency of consumers, who may be enticed with attractive, but limited duration offers.
In this environment, MNOs are considering a number of ways in which they can increase the value of business accounts. While service offers may differ, the basic idea is to enable optional services that attract a premium over and above the standard bundles that are purchased by business users.
This is nothing new; value added services for business customers have been around for a long time. What is new, however, is the strategic imperative behind the need to enhance B2B services, driven by reduced organic growth from subscriber connections and downward price pressure in consumer markets.
This makes B2B not just a priority for any MNO that is faced with challenging or uncertain revenue forecasts. The time to act is now, before pressure have an impact on revenue and margins. If you are uncertain about what to do, we can help, providing clear illustrations of how a well-managed portfolio of B2B solutions can have an impact, contributing to revenue growth and providing new sources of income, backed by convincing case studies from the market.
If B2B matters enough to be strategic, then you need to act and you need to act now. Contact Gintel to find out how we can help.