As the telecommunications industry matures around the world, telcos are moving from traditional voice and data bundles to over-the-top services. Consumers expect more than ever before, so telcos have adapted to providing streaming entertainment services, business cloud solutions, and other value-added services on top of their existing connectivity solutions.
In a previous blog post, we focused on how value-added consumer and business services give telcos a leg up over the competition. In this article, we’ll look at how telcos need to evolve to provide these services. More than anything, the value-added services division at any telco should be a center of exciting innovation, given its importance to the organization’s success as a whole.
Why Is This Change Necessary?
Over time, standard telecom services—mainly voice and data—have become relatively stable and commoditized. While telcos in many parts of the world continue to improve their data speeds significantly, base connectivity services are no longer differentiators. In other words, connectivity is just as important as ever, but existing infrastructure won’t encourage growth or attract new customers.
On the other hand, value-added services are far less standardized across telcos. This means that especially good offerings can be major differentiating factors for both consumers and business customers.
For telcos to stand out from their competitors and attract new customers, they need to focus on providing unique services that customers want.
To Guarantee Growth, Telcos Must Prioritize Value-Added Services
Value-added services divisions have the responsibility to bring new ideas and revenue streams. They are a center of digital transformation and innovation at many modern telecommunications companies. These divisions also forge strategic partnerships with leaders from external companies or even other industries altogether.
Modern telcos should treat the value-added services division like an integral part of their businesses—because it is. These services have a direct, measurable effect on customer experience, often becoming a differentiating factor for customers comparing otherwise similar telecommunications companies. Value-added services unlock new possibilities for growth that are not possible with an exclusive focus on infrastructure.
Telcos Can Transform Themselves Like They Transform Other Industries
Most other industries today, from logistics to entertainment, rely on telecommunications for their digital transformations. Just like how fast connectivity can help logistics companies coordinate delivery and make video entertainment services more accessible to consumers, telcos themselves can take advantage of value-added services to revolutionize their own businesses.
Today’s forward-moving telcos look in the mirror and transform their own value-added services division just like they do to other companies.
The Bottom Line
Even though voice and data are just as useful as ever, telco innovation is moving to value-added services. By focusing on these services, telcos can expand their customer bases, add new revenue streams, and create key partnerships. Value-added services offer unique opportunities to improve customer experience while becoming more than just a connectivity provider.
Today, telcos are more than infrastructure, so they must exit this framework to enjoy the advantages of value-added services.
At XpertAI, we make ideas possible. Don’t miss the opportunity to implement tomorrow’s products today. Let’s Talk!