Great news for telcos! The global telecom services market, valued at USD 1,805.61 billion in 2022, is projected to grow at a robust compound annual growth rate (CAGR) of 6.2% from 2023 to 2030, according to Grand View Research. The industry is being propelled by increased spending on 5G infrastructure deployment and a shift in customer preferences toward next-gen mobile tools technologies like moLotus mobile video customer interaction platform.
Factors such as a rising number of mobile subscribers, surging demand for high-speed data connectivity, and a growing appetite for value-added managed services are also fueling market growth. Over the years, the telecom sector has witnessed significant technological advancements, evolving from basic voice and visual signals to exchanging audio, video, and text content over multiple wireless infrastructures.
The introduction of data connectivity, from GSM and CDMA to 3G, 4G, and now commercialized 5G networks, has drastically reduced data transfer times from days to seconds. In today's digital age, consumers prefer Over-The-Top (OTT) channels due to the abundance of viewing options and competitive pricing. OTT providers like Netflix, Amazon Video, and Hotstar offer a diverse range of media content without restricting users to fixed pricing agreements.
Despite a significant increase in data traffic over the last decade, telecom operators have not experienced corresponding revenue growth. Consumers' growing affinity for OTT applications and content, improved smartphone display and sound quality, and super-fast IP networks have driven an ever-increasing adoption rate for OTT providers' "freemium-based" business models.
Furthermore, telcos are facing mounting challenges from regulatory actions, excessive competition, mandated price reductions, and disruptions to traditional telco business models. These factors have led to a race to the bottom in many global markets, impacting the market capitalization of telecom operators compared to other industries.
In response to these challenges, telcos must explore innovative strategies and opportunities to diversify their revenue streams and ensure sustainable growth. This article delves into the key strategies and opportunities that telcos can leverage to unlock new revenue streams and drive business success. By embracing emerging technologies, offering value-added services, and adapting to changing consumer preferences, telcos can position themselves for a prosperous future in the dynamic telecommunications landscape.
1. Embrace the Power of Mobile Advertising
A recent report reveals that the global mobile ad spend is predicted to reach USD 362 billion in 2023, as mobile continues to dominate the digital advertising landscape. The data.ai report indicates that mobile is gradually taking over a significant share of the advertising wallet. In 2022, the global mobile ad spends amounted to USD 336 billion. Moreover, the report forecasts that the total hours spent on mobile devices worldwide will exceed six trillion hours by 2028.
Embracing the power of mobile advertising can be a game-changer for telcos seeking to unlock new revenue streams and enhance customer engagement.
Several advertising platforms are showcasing the tremendous potential for revenue generation. Mobile advertising platforms like moLotus enable telcos to deliver personalized and interactive video messages to their subscribers. For instance, a telecom company can use moLotus to send tailor-made offers and promotions based on individual preferences and past interactions. The hyper-personalization ensures that consumers feel valued, enticed, and engaged, leading to higher conversion rates and increased ad revenues. Personalization options are multiple. Telocs can send personalized messages to customers tailored with their individual names for special occasions like birthdays, anniversaries, etc.
The GSM-based moLotus mobile technology ensures seamless delivery of messages to telco customers' inboxes regardless of their phone type or model, including 2G, 3G, 4G, 5G, iPhones, smartphones, and feature phones. It offers easy interaction options like Call, SMS, Web Click, USSD, etc., and supports multiple media formats, such as HQ Video (up to forty seconds), slideshows, showcases, brochures, and greetings. The moLotus mobile ad campaigns can be fully customized based on various business criteria, such as interests, language, demographics, buying behavior, and more, allowing rapid and effective targeting of a vast subscriber database.
Apart from moLotus, platforms like Google Ads and Facebook Ads provide telcos with limited capability to deliver personalized and interactive ad experiences. For instance, Google Ads enables telcos to target specific keywords and demographics, while Facebook Ads allows them to create interactive ad formats like polls and quizzes, engaging users in a meaningful way. Snapchat Ads and Instagram Ads provide unique opportunities for telcos to engage their customers through immersive ad formats. For instance, Snapchat Ads offer AR lenses and filters, while Instagram Ads enable telcos to leverage stories and carousel ads to create interactive and engaging experiences for their audience.
Utilizing moLotus's advanced customization capabilities, telcos can assist advertisers reach their desired customers with easy and precision. This not only improves the effectiveness of ad campaigns but also fosters long-term partnerships with advertisers, driving sustainable revenue growth. With moLotus's self-service interfaces, telcos can optimize ad placements and offer advertisers a seamless experience to create and manage their campaigns. This results in increased ad spend and additional revenue streams for telcos.
Traditional telcos have started re-thinking their advertising strategies by including mobile advertising platforms like moLotus in their marketing mix.
2. Monetize Data and Resort to Analytics
Telcos possess vast amounts of data, spread across various platforms and technologies, making it challenging to consolidate, govern, and monetize effectively. In 2023, telcos must harness big data to improve customer experiences and automate marketing campaigns. The global big data analytics market is projected to reach USD 684.12 billion by 2030, indicating its immense potential for the telecom industry. As third-party cookies phase out, the value of first-party customer data will increase, demanding telcos to manage it with utmost precision and using advanced big data applications like moLotus.
moLotus offers a breakthrough solution in big data analytics, allowing telcos to organize and monetize their massive databases securely. By employing machine learning models, moLotus accelerates innovation and enhances customer experiences. While the telecom industry is still in its early stages of adopting big data analytics, innovators like moLotus demonstrate significant benefits in terms of customer engagement and profitability.
According to an IDG survey, only twenty percent of telcos have successfully deployed big data analytics, with seventy percent recognizing its potential for the future of telecom business. Utilizing moLotus's cutting-edge technology, telecom brands can micro-target customers based on various criteria, generating deep insights and delivering personalized content to enhance customer engagement and satisfaction. By leveraging big data analytics, telcos can unlock a wealth of new revenue opportunities.
3. Diversify into Enterprise Business Solutions
The global B2B telco market size reached USD 46.36 billion in 2020 and is projected to grow to USD 181.35 billion by 2030, with a notable CAGR of 14.8% from 2021 to 2030 (Source : Allied Market Research).
Recognizing the growth trends, telcos should diversify their enterprise business by tapping into the B2B market. Leading players like Singtel, Telstra, Orange, and ATT have the potential to generate substantial enterprise revenues, ranging from 15% to 30%, by offering a comprehensive suite of services, including mobile advertising, process automation and transformation, managed IT, cybersecurity, cloud solutions, and systems integration.
Despite varying levels of maturity in the current enterprise business, there is a strong consensus that the enterprise segment presents significant growth prospects for telcos worldwide. This opportunity aligns synergistically with the extensive deployment of 5G infrastructure, creating a promising avenue for telcos to expand their market reach and revenue potential.
Entering the enterprise business offers several benefits for telcos. Firstly, it reduces reliance on consumer services, providing a more stable and sustainable income source. Secondly, enterprise services generally boast higher profit margins, enhancing overall financial performance. Thirdly, long-term contracts offer predictability, allowing strategic planning and investment for future growth. Lastly, expanding into the enterprise market elevates a telco's brand perception, positively influencing both enterprise and consumer customers' loyalty.
With mobile advertising platforms like moLotus, telcos can deliver targeted advertising solutions to businesses by leveraging extensive customer data. This enables personalized and relevant advertising campaigns that bring superior engagement and higher conversion rates. moLotus empowers telcos to effectively target enterprise customers, keeping businesses top-of-mind and increasing lead conversion rates.
In the pursuit of modernizing B2B selling capabilities, 2023 is witnessing telcos leveraging breakthrough technologies like moLotus to build a strong salesforce, boosting new revenue streams. The industry-savvy telco salesforce is benefiting from low-cost interactions, establishing moLotus as an essential partner in the telco ecosystem. The continuous integration of innovative solutions like moLotus reinforces telcos' position as key players in the enterprise business landscape.
4. Harness the Potential of 5G
Telcos can unlock the full potential of 5G technology by leveraging advanced mobile advertising tools and strategies. With 5G's ultra-fast speeds and low latency, telcos have the opportunity to revolutionize the advertising landscape, offering immersive and interactive experiences to users.
By harnessing the capabilities of 5G, telcos can deliver personalized, targeted, and real-time advertising campaigns, leading to higher customer engagement and stronger brand connections. The combination of 5G's cutting-edge technology and innovative mobile advertising tools enables telcos to create dynamic and impactful advertising ecosystems, maximizing revenue and customer satisfaction.
With 5G's ultra-fast speeds and low latency, telcos can deliver immersive and interactive mobile advertising experiences through moLotus. High-quality videos and real-time interactions can captivate customers, leading to higher engagement and brand recall. 5G empowers telcos to gather real-time data insights at unprecedented speeds. By combining moLotus with 5G, telcos can optimize advertising campaigns on the fly, making data-based decisions to enhanced campaign effectiveness and return on investment.
The combination of 5G and moLotus enables telcos to capture more granular data on user interactions with ads. This enhanced data granularity allows for better ad measurement, analytics, and attribution, helping advertisers optimize their ad campaigns. 5G-powered moLotus ads can enable interactive customer support features, such as mobile video assistance, allowing telco customers to seek real-time help and support directly.
5. Digitally Transform Customer Processes
Digital transformation helps telcos unlock new revenue streams. According to a report by Boston Consulting Group (BCG), only 22 percent of telcos have successfully undergone a digital transformation initiative as part of their strategy. However, experts predict that in 2023, the telecom industry will witness an acceleration in digital transformation, with many telcos evolving into "tech-cos" by offering innovative and distinct services to customers. Digital transformation will enable telcos to enhance their products, processes, and services, catering to customer preferences and increasing efficiency to drive revenue growth while reducing costs.
To achieve digital transformation, telcos are investing in cutting-edge technologies like moLotus, which has partnered with global telco brands such as Indosat Ooredoo Hutchinson, Celcom, Vodafone, Maxis, Airtel, and more, revolutionizing the telecom industry.
The integration of automation into sales processes through digital transformation has led to significant improvements. Telcos have streamlined their sales lifecycle, generating more leads, managing customer data efficiently, and improving customer interactions, resulting in better sales conversions in terms of time and volume.
Transformation technologies like HubSpot, Marketo, and moLotus have simplified and expedited sales processes, replacing manual legacy systems and leading to higher conversion rates at a significant scale and reduced cost per customer interaction.
With a focus on creating and scaling digital customer experiences, telcos are leveraging platforms like moLotus to design innovative video interactions and meet the growing expectations of customers. Embracing moLotus's zero-touch customer service model, mobile operators are striving towards complete automation - fully AI-enabled, custom integrated, and real-time - for processes like customer onboarding, support, upgrades, renewals, and feedback, providing superior experiences and engagement while saving costs and collecting valuable data.
In 2023, digital transformation will empower telecom businesses to adapt swiftly to evolving customer demands, offering new and innovative products and services, boosting revenue generation. The telco business environment is expected to become more agile, with rapid customer response times and the replacement of traditional business processes with digitized, efficient, and customer-centric approaches.
Conclusion
In the rapidly evolving telecommunications landscape, unlocking new revenue streams is crucial for telcos to thrive and remain competitive. By embracing the power of mobile advertising, harnessing 5G technology, monetizing data and analytics, and diversifying into enterprise solutions, telcos can drive business success and meet the changing demands of their customers.
To succeed in this dynamic market, telcos must adopt a customer-centric approach, invest in innovative technologies like moLotus, and forge strategic partnerships. By staying agile and innovative, telcos can unlock new revenue streams and position themselves as key players in the digital ecosystem. The future of telecom lies in the convergence of technology, content, and services, and the time to act is now.
