5 Key Revenue Opportunities for Telecom Companies Today

With the constantly changing telecom landscape, companies can no longer drive revenue using traditional business models.
The shift from cabled communication systems to wireless, data-driven services has been a massive one. And although telecom companies have adapted to the Internet era by adding mobile capabilities to their service portfolio, the question is – is this enough to sustain growth and remain competitive? Probably not!
For telecom companies with falling revenues, and customer churn, here are 5 key revenue opportunities:

  1. Powering the IoT world: With over 30 billion devices expected to be connected by 2020, revenue opportunities for telecom in the IoT world are abundant. As more and more devices get connected, the demand for connectivity between them is on the rise. From connected cars to smart cities, energy meters to infrastructure monitors – telecoms stand a great chance to drive substantial revenue by capitalizing on this opportunity – with existing infrastructure in place. Since IoT devices require the transmission of several thousand bytes of data continuously, telecom companies can monetize their sales for virtually any connected device using mobile data plans, and bill OEMs based on the amount of data transmitted between devices. Just for the automotive industry, such a model is expected to generate $33 billion in industry revenue by 2025. By investing in the value chain for IoT, telecom companies can diversify their revenue streams and increase revenue in a number of ways.
  2. Providing data as a service: As high-speed internet becomes a necessity for enterprises and customers alike, data as a service presents telecoms with a massive revenue opportunity. According to Market Research Future, the data as a service market is expected to be worth $12 billion by the end of 2023. Using existing networks, telecom companies can make data files – in the form of text, audio, video, and images – available to customers through the Internet. For enterprises looking to drive analytics, such data-driven solutions can drive substantial demand. Using cloud as the underlying technology, telecoms can make data accessible to customers through different devices, from different locations, and at different times. Pricing can either be based on the volume of data – say a fixed cost per megabyte, or the format of data – say a fixed cost for image files and video files. As datawill always be in demand, data as a service has the potential to replace traditional revenue models and become the main source of revenue for telecoms in the future.
  3. Moving into mobile commerce: With smartphone sales reaching an all-time high, the mobile commerce trend has also sky-rocketed. According to Retail Dive, mobile commerce is set to capture 49% of online retail sales by 2020 and touch the $319 billion As retail payments through mobile devices increase, telecoms stand a good chance to play a key role in enabling mobile commerce. Not only can they provide good network connectivity for a seamless mobile shopping experience, but telecoms can also act as a digital wallet for consumers and facilitate mobile transactions between buyers and sellers via near-field communication. Telecoms can also monetize revenue by offering insights into consumer behavior and enable merchants to optimize their advertising campaigns to increase conversions and sales. Payment can be offered through a usage billing model as well as in conjunction with bill-on-behalf services, making it a much sought-after business model for increased revenue.
  4. The realm of media and entertainment: As Netflix and Amazon Prime change the face of the media and entertainment industry, telecoms have a great revenue opportunity at hand. They can invest in native platforms and own the infrastructure upon which the entertainment solution is built. Alternatively, telecoms can also avoid the pains of developing complex technology by acquiring smaller media and entertainment companies, and the resources that come with it – to carve a solid footprint in the industry. As the average number of hours consumers stream videos increases, this is the optimal time for telecoms to generate incredible revenue across the value chain, and also monetize the content by sharing usage data back to service providers to improve streaming experience.
  5. The need for health monitoring: As the need to manage health from the confines of the home increases, health monitoring is a lucrative space for telecom companies to generate additional revenue. With the adoption of health monitoring devices tripling by 2020 and exceeding 70 million, the opportunities at hand for telecoms are many. Since health monitoring devices need to share data with other devices and systems in the ecosystem instantly, and continuously, telecoms can provide connectivity services to device manufacturers and capitalize on the growing opportunity. With every manufacturer in a rat race to lower health costs and improve patient service and safety, telecoms can use the opportunity to become a trusted third-party provider and offer communication services and/or the underlying infrastructure facilitating data flows.

Drive higher value

As the pressure to meet changing customer demands, enter new markets and out-do competition increases, the revenues from traditional services are plummeting. Therefore, the time has come, for telecom companies to think of new revenue opportunities.
The good news, thanks to technology disruption, is that there is a sea of monetization and revenue opportunities telecomscan choose from: IoT, data as a service, mobile commerce, media and entertainment, and health monitoring, among others. With the infrastructure already in place, telecomscan explore new and innovative ways to monetize data and create alternative revenue streams. The key to success, however, lies in the manner in which telecomsmake the most of these opportunities and ensure alignment between strategy and execution to drive higher value.

Sharing is caring!