Multi-industry forces are a current reality
Consumers are increasing spending on OTT services. Market value is shifting to OTT players – and away from CAPEX-heavy CSPs that are largely subscription-dependent. 1
2 billion global Millennials are first-generation "digital natives," consuming a major share of digital services. They have the most spending power of any generation. 2
67% of consumers say dealing with customer service is exhausting. 3
Almost three-quarters of CSP customers would like their provider to operate more like
Paypal, Netflix and Amazon.
Web chat is hugely popular for customer service. 65% of consumers prefer to use web chat to contact a business and many get frustrated when there’s no web chat on offer. 5
80% are open to chatbots for quick queries .
In Q4 2016, telecom companies generally had negative Net Promoter Scores (NPS). The average NPS across 42 countries (73% of world population) was -9 on a scale of -100 to +100. 7
Over the past 3 years, consumers' trust in the handling of their personal data by CSPs has
declined globally by 12%.
Telecommunication-specific forces are already shaping the industry
More than three-quarters of telecom Reinventors expect to reap major advantages from virtualizing their networks, citing quicker time-to-market for new services as the key benefit. 11
Only about 7% of CSPs say network function virtualization (NFV) is not important to their
80% of CSP respondents say open source implementations and open standards will be the dominant trend over the next several years – helping businesses become more agile and ecosystem-centric. 13
CSP horizontal merger and acquisition deals are increasing as CSPs seek scale advantages. But scope-driven merger and acquisitions are growing for non-network assets such as content, digital media and IT services. 14
Consumers are migrating from CSP voice and text services to messaging services, video chat and social media from OTTs, device manufacturers and application providers. This resulted in CSP revenue decline of nearly USD 104 billion in 2017 . 15
For successful Digital Reinvention, CSPs need to build new expertise – agile, DevOps, data mining and analytics, AI, API and microservices. 16
Talent is not attracted
to CSPs, creating a disadvantage for telecoms. 17
Geo-dependent regulatory directives in data privacy/ protection, encryption, antitrust and
net neutrality are becoming increasingly complex, making it more difficult for CSPs to build new revenue streams.
©2018 IBM Corporation