LONDON, UK, 28 September 2020 2pm, the leading telecoms analyst firm Omnisperience has announced new research that urges telecoms firms to resegment their market and understand what’s happening in the household in order to optimise their opportunities in the New Normal and accelerate time to new revenue.
Huge investment, uncertain returns
Telecoms service providers have spent billions on designing, deploying and innovating new networks such as 5G and FTTP. But as has been the case with previous network refreshes, they have failed to articulate a clear path to offset the massive CAPEX involved, with the consumer-facing proposition particularly uncertain.
New Smart Lifespace opportunity requires a rethink
In a new paper, industry analysts Omnisperience outlines that there’s huge short term and longer term growth potential for ICT firms that can better address the emerging opportunity within households. However, doing so requires them to rethink their customer segmentation as well as the bundles, pricing and offers targetted at households.
“A lot has been written about the revenue-generating potential of 5G, but many of these so-called opportunities have no proven demand and are either improbable, highly speculative, hard to deliver, or some way off. Service providers need new revenue streams today but, as is often the case, they’re overlooking the obvious,” says Omnisperience’s Chief Analyst Teresa Cottam. She continues: “The New Normal has clearly revealed that the household is no longer what many ICT firms believe it to be. It’s become a different size and shape because people are living differently. It’s become a hive of business. And it’s utilising an ever-wider range of technologies. But it’s also increasingly frustrated because service providers are not adequately addressing its needs.”
According to Cottam, telecoms service providers have historically been bad at cross-selling and upselling to consumers, take a very narrow view of what they sell to households, and by failing to address the emerging opportunity have handed huge revenue streams to rival ICT players.
“Failure to address the new needs of households isn’t just bad for service providers,” warns Cottam “it’s also bad for the households themselves. They’re frustrated at having to buy technologies from dozens of suppliers and then having to try and integrate and support disparate products. Inevitably there are gaps that can be exploited by criminals in the form of cybersecurity issues, but equally when things go wrong, aren’t compatible or don’t provide the level of service the household now needs someone inside the house has to use their precious time to fix things.”
ICT support work has become the most hated chore of the smart lifespace. Someone in the household has to act as the unpaid support desk when things go wrong and, as the household uses more technology, things are going wrong more frequently. It’s become a thankless task that eats your precious time and something that most people would happily offload.
Teresa Cottam, Chief Analyst, Omnisperience
During lockdown it became obvious that consumer mobile, broadband, packages, prices and service levels don’t cut it in the New Normal. Not only do households need telecoms firms to offer higher quality of service (QoS) for homeworking, running nanobusinesses from home and for high-quality entertainment services, but they also need more cloud-based services, cybersecurity, assurance and managed lifespace services. At a very basic level mass homeworking requires ICT providers to address the gaping historic divide between B2C and B2B customers which determines which services can be offered to them. It means rethinking and refreshing bundles, pricing strategies and offers to better meet the emerging needs of smart lifespaces.
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INFORMATION FOR EDITORS
Omnisperience is a leading independent analyst and advisory firm, focused on B2B Telecoms Service Providers, their vendors and business customers. Omnisperience’s purpose is to help B2B service providers become more profitable by understanding and meeting the evolving needs of their customers. For more information see omnisperience.com
Smart Lifespaces are: places people live, work and play supported by technology.
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Supporting materials:
- A one-to-one briefing – please contact our Editorial Team
- Photograph and bio of Teresa Cottam
- A copy of the research paper: Unlocking The Emerging Opportunity From Smart Lifespaces
CONTACT INFORMATION:
Contact our Editorial Team.