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Claudio Saes, a partner and telecom practice leader at Bell Labs Consulting, explains the challenges facing the telecom industry, with operators seeking to capitalize on the B2B segment for growth beyond the saturated consumer market. However, many operators struggle to translate their connectivity expertise into sustainable revenue streams due to legacy mindsets and competition from diverse players in the evolving B2B landscape.

The rise of cloud, IoT, and digital technologies has created a complex B2B environment, with operators needing to integrate their offerings with customers’ IT systems to stay competitive. Successful telcos have partnered with tech companies and focused on specific vertical markets to provide tailored solutions and drive higher-value engagements. The emergence of 5G presents opportunities for operators to offer advanced connectivity services to industries like healthcare, leveraging network slicing and tailored connectivity solutions.

Operators face challenges in balancing in-house capabilities with partnerships to navigate the evolving B2B space. The rise of open APIs and platform business models introduces challenges around value sharing, customer ownership, and security. Some telcos struggle with a winner-takes-all mindset and should consider cooperating with competitors to maximize opportunities in the B2B segment. Operators are also exploring opportunities in the SMB segment to provide one-stop shop IT services, simplifying offerings and focusing on understanding customer needs.

Industry niche challengers pose a threat to telecom operators, utilizing bold strategies and faster connectivity models to gain market share from incumbents. Telcos need to align their marketing, sales, and business intelligence teams to scan the markets for threats and address them proactively, even if it involves cannibalizing legacy services. Despite these challenges, the B2B segment remains enticing for operators as demand for integrated solutions grows during digital transformation.

Saes emphasizes the need for telecom operators to shift from connectivity providers to strategic business partners to succeed in the B2B space. This transformation requires significant investments in capabilities, targeted acquisitions, and collaborations to deliver value-added solutions that enterprise customers demand. By embracing this shift, operators can unlock the true potential of the B2B segment, driving sustainable revenue growth and establishing themselves as crucial enablers of the digital economy. The challenges are significant, but the opportunities are equally compelling for operators willing to seize them.

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