Can MNOs and operators stop the decline in B2B revenues?
Operators that offer basic B2B voice and connectivity services are faced with declining revenue and increasing legacy platform costs. At the same time, many are exploring the launch of a diverse range of ICT offers. Take control by extending voice offers from a new converged, consolidated environment that supports revenue growth, complements existing capabilities and reduces costs.
Basic B2B service bundles are failing
MNOs are faced with declining B2B revenue, according to Analysys Mason, a research and consulting firm. In a recent update to its forecasts, Analysys Mason predicted that operator revenue from voice and data services will decline by up to 5% by 2024. Fixed voice will be worst hit, suffering a 10% fall in the same period. Clearly, operators need to find new revenue streams and to reduce costs to offset these losses – and to capitalise on growth opportunities.
While many are focused on a more complete range of ICT services, there are more basic steps that can be taken – today – to provide a more effective platform for the future. First, as the report notes, these are revenues from basic connectivity services, of which voice is a part. This strongly suggests that most B2B customers are being offered only a simple portfolio of services. In other words, operators are still not providing new subscription-based offers, which increase revenue beyond connectivity and consumption charges.
Add Mobile PBX to move to new subscription offers and complement capabilities
That’s a clear missed opportunity. Incremental revenues, even for unlimited voice-based services, can be obtained by offering Mobile or Cloud PBX services, corporate voice VPNs, and so on – just as our customers do to their B2B users.
What’s more, this tactic has given them experience, allowing our operator partners to gradually add more services, broadening their ICT offers. This point is important, because while subscription revenues can help arrest the decline, further steps need to be taken to increase the breadth and attractiveness of offers.
But, as Analysys Mason points out, this path is faced with challenges, both in terms of strategic direction (Partner? Buy? Resell?) and in terms of integration and selling capabilities. That’s why building on proven and known services can help accelerate this process – particularly if the resulting service offers are complementary to existing solutions. In other words, start with what you know and grow from there – and don’t reach too far into the unknown.
Reduce costs by converging and eliminating legacy siloes
Second, the issue of cost reduction is ever-present. Operators that have legacy systems are often confronted with resource duplication, high operating costs and more. A key step towards stemming revenue loss is to eliminate or reduce these costs – and consolidation of disparate service siloes can have a significant positive contribution to this goal.
Many operators have different service solutions for B2B and other core network services. Maintaining these drains resources, eats costs and reduces profit. Far better to converge as much as possible to a consolidated service framework that will both maintain existing services while enabling future growth and the smooth introduction of new services.
A consolidated service framework for B2B and more from Gintel
Gintel helps on both counts. Our service framework provides a single, carrier-grade and highly scalable environment in which legacy services can be consolidated and into which new services that attract subscription fees and higher revenues can be introduced. It fits elegantly into the telco cloud environment, allowing tight integration with key virtual resources, such as the IMS.
We help operators take steps towards a broader, ICT-based future, but with the confidence to do so with services that complement core offers. So, get in touch with our team to explore how we can provide a path to new revenues while reducing costs.