‘All Change’ React or die
A very strong theme in the CSP markets is one of increasing change and the increasing pace of change. This is in relation to the service offerings, the M&A activity, the leadership and the technology.
Competitive pressure is the driving force behind all of this and not necessarily from other CSPs but rather from digital service providers or Over The Top providers (OTTs) as they are known.
It is estimated that in the past 12months alone CSPs have lost cumulatively €50Bn due to IM replacing SMS and VOIP replacing voice calls.
No industry can undergo such loss and not react…..If they don’t react they die.
There are a number of fronts that CSPs are fighting on….
1) Expanding Content
We have seen examples of operators focusing on content. Deals such as the Rogers NHL deal in Canada and BTs various deals with sports content are great examples of that.
It has been a very busy period of consolidation. Most of these deals are driven not by growing market share but rather by developing a broader service portfolio. This is the motivation behind Vodafone’s acquisition of Ono in Spain and Kabel Deutschland in Germany. Also deals like Three’s acquisition of O2 Ireland and the pending deal between EE and BT in the UK.
3) New Services :
CSPs are also developing a broader portfolio of new Digital Services such as Cloud services, M2M and Healthcare. They are looking a niches an example of one such service is SingTel offering parents of new-borns in neo-natal the ability to monitor their child 24×7 over their phones and mobile devices.
So the core theme I see continuing is CSPs broadening service portfolio with a view to sell more services to existing customers.
As you might imagine in order to sell more services or content to your existing customers you need a number of things to be successful :
- A solid service portfolio
- A reliable delivery network
- A competitive commercial offer
- A receptive, positive relationship with your customer.
The last of these points is arguably the thing that CSPs are worst at. Conversely digital businesses have ‘customer centricity’ at their very core.
For example Zappos (www.zappos.com) will show you where you can get an item from their competitors if they are out of stock ! These businesses communicate with their customers in a targeted, personalized way.
In 2015 CSPs need to focus on three core capabilities if they are to leverage their investments in creating a broader service portfolio:
- Identifying the audience at the point of need.
- Telling great stories that are personal and relevant.
- Influencing behaviour
These are the capabilities that we in Brite:Bill will be focusing on in 2015.
For more information on how Brite:Bill enables CSP customers to maximise and develop relationships with customers through the billing touch point feel free contact me directly email@example.com
Alan Coleman, BIO
Alan Coleman is the founder and CEO of Brite:Bill. Before establishing the company he was Alliance Sales Director for the Products Operating Group in EMEA at Accenture. In this capacity he was responsible for €100m of hardware and software sales. Prior to joining Accenture in 2002, Alan held a senior business development role with Macalla Software, a technology startup. Alan began his career with Morgan Stanley investment bank in London and is a graduate of University College Dublin (UCD) and Michael Smurfit School of Business with an undergraduate degree in Computer Science and a Masters in Business Studies.