Over the next three years in the telecommunications industry, growth in the business market will surpass growth in the consumer market. To capture the big potential in B2B services, telcos will need to restructure their priorities. Christophe Van de Weyer, a partner with Bain's Telecommunications practice, discusses three ways that telcos can focus their efforts to embrace this opportunity.
Read the transcript below.
CHRISTOPHE VAN DE WEYER: Telecom companies have historically focused on the consumer market, which represents [the] majority of their profit pool. In the future, they should really focus on the business market. Over the next three years, growth in business market services will surpass [that] of the consumer market, and that's mainly driven by mobile data growth and growth in IT.
Embracing this growth opportunity will not be easy because they have often relegated the business opportunity as a second level priority. When they do pursue the business opportunity, often they diffuse their efforts on too many initiatives with too many fragmented resources across multiple IT adjacencies, while they are not capturing the big potential that is still in their core connectivity business.
To reach full potential, telcos need to prioritize again the business market opportunity and focus on three main things. First of all, invest in understanding customer needs and tailoring their product services and channels to their needs. Secondly, they really need to pick the one or two IT adjacencies they want to pursue. Thirdly, they need to avoid the temptation of building each time bespoke solutions and try to build scalable, modular offers.
Read the Bain Brief: How to Capture B2B Growth Opportunity in Telecom