Telecom businesses need new revenue streams despite increased demand
The last 10 years have seen massive growth in terms of volume for telecom businesses, especially in the western world. However, this massive growth has strangely not led to a corresponding increase in revenue for telecom operators, especially in European markets. Many experts have attributed this to several regulations that have made it difficult for telecom operators to take advantage of the current demand increase to make revenue. Other challenges like market disruption and disruption to retail businesses have led to many telecom operators underperforming. This has called for the need to create new revenue streams to make most telecommunication companies more profitable.
One of the ways telecom businesses can create new revenue streams is to take advantage of new technological solutions. There appears to be enough to help telecom operators boost their profits with the emergence of 5G and other new tech solutions like blockchain for telecoms. The latter, for example, can help businesses in this sector harness new revenue streams, reduce operational costs, and meet the new challenges of the 5G rollout.
Telcos can also find new ways to offer new products for more prices. The logic here is pretty simple; introduce new and enhanced services in addition to existing ones and use them as justification to increase service charges. This solution will prove particularly effective for telecom businesses operating in areas with regulations that mandate decreases in wholesale prices.
Smartphones also offer a massive opportunity for telecom businesses to increase their revenue streams. That’s because ecommerce is expected to evolve alongside mobile technology. For example, while many people today make online transactions with their debit or credit cards, they can expect to use their smartphones for all such transactions in the near future. This is a window of opportunity for the telcos. Telecom businesses can use near-field communication (NFC) technology, for example, to corner the market when it comes to online transactions and ecommerce. NFC is perfectly designed to exchange data between two devices or smartphones with a simple hand gesture. Experts expect this technology to take centre stage as the ecommerce world shifts away from using credit and debit cards online. Telecoms can also find unique ways to extend how they use NFC beyond smartphones alone. For example, there is an opportunity to use NFC technology to communicate between cars, tablets, and clothes. From the local coffee shop and grocery store to movie sales, telecoms can monetise many day-to-day transactions of millions of people.
Also, to create new revenue streams, telecom businesses need to revise their up-sell and cross-sell strategies. For example, telcos can work on customer outreach and marketing strategies beyond the usual mass promotions. It starts with identifying and addressing your customers’ changing needs and expectations. And as a result, creating all-inclusive marketing strategies that take customer expectations into account. This is an effective way to gain the customer trust needed to drive loyalty and boost sales. Creating engaging marketing content to make cross-selling and up-selling easier is also important.