Shift to enterprise and vertical focus today to sidestep declining mobile service revenue – and prepare for 5G
The continuing decline in consumer mobile service revenues is unlikely to be reversed by 5G. Instead, the increased need to meet the needs of vertical industries and segments is likely to be the driving force for operators. Why wait to launch custom offers and vertically-specific solutions? Increase flexibility and agility with Gintel, while preparing for new IoT-enabled offers.
Recent data from Telecompaper shows that mobile services revenues in the Netherlands declined by more than 8% in the last year. That shouldn’t be a surprise, as such trends have been evident for a number of years. Consumers continue to expect to receive more while paying less for their mobile services.
This trend is set to continue, with research from Telecom TV suggesting that, despite huge media attention, consumers will likely deliver only a small fraction of revenue to be generated by 5G. Instead, enterprise applications and partnerships are anticipated to account for the lion’s share, driven in part by an early focus on IoT services.
All of which is exciting for operators, but it begs the question, why aren’t they doing more to drive enterprise business today? Of course, consumers matter, but operators mostly need to defend existing revenue and protect their subscriber base. Service revenue will continue to be challenged, so the task is to try to reduce the losses rather than to search for a secret recipe that will turn decline into growth.
So, if enterprise revenue is a key growth opportunity for the future, operators should prepare for this by doing more today, rather than chasing a diminishing flow of consumer opportunities in a price-driven race to the bottom. What’s to be done? Since future 5G IoT and enterprise services are more likely to be differentiated according to different verticals and industries, perhaps that’s the right place to start.
Instead of a one-size fits all approach and a simple split between enterprise and consumers, operators need to consider segmentation within their markets, particularly for enterprises. If they see automotive and manufacturing as major 5G opportunities as, according to the Telecom TV data, they do, then they need to prepare offers and capabilities to reflect this.
That means ensuring that they can deliver communications services that service specific needs within a segment. In turn, this means obtaining a deep understanding of what each segment really needs. It’s not enough to pay lip service to this by saying that they address the car industry or fleet management sector, for example , operators must really understand what that industry needs – and how that might change as 5G starts to be deployed.
To achieve this, they need flexible communications systems that offer the flexibility for easy customisation and integration with new processes and solutions that may be specific to an industry or segment.
That can already be achieved with Gintel’s EBCS. This has proven integration interfaces, as well a flexible service creation interface. This means that operators can already ensure that they customise communications services for different segments, while enabling new connectivity options for specific capabilities demanded by different industries.
Operators need to prepare for 5G but that doesn’t mean delaying new vertical communications offers until the RAN is ready. They should, instead, be paving the way for this by delivering optimised services today but with the capability to evolve to meet new customer needs and sector requirements.
Find out how Gintel enables you to customise for different industry sectors and can prepare you for 5G success.