Helping Telcos Adapt a New Business Model

MYCOM OSI is a Business Reporter client.

Focusing on the experience of customers is paramount to success.

Over the past 30 years, the mobile telecom industry has continuously introduced tech to serve the changing needs of its customers. Current trends show that hasn’t changed; telco businesses have an ongoing need to monetize their networks and services and, supported by AI, to optimize their resources and reduce operational costs.

A research firm recently estimated that 5G infrastructure revenue will increase to $23 billion in 2022, and IoT and private mobile network businesses will also continue to grow. To support the new services, migrating telecom networks and their operations to the cloud is key for service providers.

The shift to more mission-critical enterprise and industry services, based on streaming applications, is triggering a need for flawless connectivity and optimal performance for robotic manufacturing, remote health care, autonomous driving, public safety and other critical services. It is an exciting time in the market, and telecom service providers are reshaping their businesses to meet demand.

The profile of future telcos

Telcos are evolving newer business models, primarily driven by “smart” industries, which require ubiquitous connectivity and high reliability.

Telecom providers will need to offer further advanced connectivity services, delivered on demand and in real time with the highest availability and quality. Enterprise users expect the network to operate seamlessly because critical services, such as driverless autonomous cars, precision factories and drones, depend on them; SLA guarantees will increasingly become critical to enterprise business models.

From health care to transportation, smart industries will provide the impetus for connectivity providers to meet performance standards. For context on why telecom operators will focus on this, a market research company estimates that the global market for Industry 4.0 will be worth $123 billion in 2022.

Aligning with customers to achieve strategic objectives

Increasing intelligence is required to deal with the immense complexity, scale and diversity of use cases that telecom service providers and their smart industry customers will handle. To deliver 5G capacity, telcos are heavily investing in fiber and connectivity. There is a major need to monetize these new services and optimize costs, yet deliver high-quality services.

Intelligent connectivity is needed for an intelligent industry. Whether intelligence is organically built into the networks or extracted from network or customer data, it is crucial to how telecom businesses will deliver the goods for smart industries.

Products that support smart industries will be determined purely by what the customer demands, and product innovation will be determined by the longevity of the product and the flexibility of the vendor to adapt and customize to the needs of customers. This renewed focus on customers will help keep service providers’ margins on track.

In addition, service and usage metrics are critical for an enterprise. If telcos can guarantee services and offer tools to check the status of the service-level agreement for a connectivity service, the customer will feel empowered. This shift in power from the telco to its customers is new and essential, and will enhance trust between the provider and the customer.

How to rethink for tomorrow

A change in technology and business models can bring great opportunity as well as challenges.

MYCOM OSI has helped Tier 1 telcos around the world achieve their business and strategic objectives for the past two decades. By offering network assurance and experience assurance solutions, MYCOM OSI has helped them deliver the best performance to support their customers.

MYCOM OSI’s key objective is to drive economic outcomes for telcos by reducing their CAPEX and OPEX. AIOps will be key to unlocking the potential of data to build revenue and keep telcos fully aligned with their customers’ needs. Through informed predictions of service needs, service behavior and network response, service providers can delight their customers and rebuild their businesses.

— Industry view from MYCOM OSI

This article originally appeared on Business Reporter. Image credit: Courtesy of MYCOM OSI