Telecom Industry: Key Drivers for Digital Transformation


Digital transformation (DT) refers to the use of digital technologies for improving business processes, and activities. Today, business executives in many industries are using digital technologies to improve customer experiences, business models, and operational processes. However, there are various industry segments that still follow traditional marketing models – telecom industry being one of them. This discussion aims at explaining telecom industry players – why they should consider digital marketing for business transformation.

Why Digital Transformation?

According to an online survey, primary goals of any digital transformation project are:

  • 74%: Enabling Efficient Use of Data Management Within an Organization
  • 72%: ImprovingProduct and Service Experiences with the Help of Digital Technologies
  • 66%: Gaining a Competitive Advantage
  • 53%: Transforming Corporate Culture And Operating Model

Key Drivers for Digital Transformation in Telecom/Communication Service Provider Industry

Since last few years, the profit margins of the telecom companies are under pressure due to myriad business and socio-economic reasons. Telecom companies and telecom ecosystems (Communication Service Providers and Infrastructure Operating companies) are finding innovative solutions to improve their revenues and reducing their operational costs. With data management, data integrity, and data security becoming hot topics, telecom companies are under pressure to digitize their assets.

The following are five key drivers that suggest the rising importance of digital transformation in telecom/communications industry.

  • Growing Usage of Smart Devices: The electronics industry is exploding with new and smart devices, which needs security, live streaming, and network availability. A digital platform will help telecom companies to evolve their business models and help them adapt to new reality.
  • Advancement of Network Infrastructure: Today, consumers are increasingly getting addicted to various advanced digital technologies such as smartphones, tablets, notebooks, etc.They use these platforms to increase their social connectivity, gaining knowledge, entertainment, shopping, and various other reasons. This has put tremendous pressure on telecom companies. Rising consumer demands for advanced data has forced telecom companies to adopt new technologies like 2G, 3G, and 4G. Rigorously evolving data consumption patterns are driving telecom companies to constantly realign their business, and make massive investments to refurbish and protect their network infrastructure. However, these companies can gain a competitive edge by embracing an advanced digital platform. This will not only help them optimize their infrastructure management costs, but also respond to ever-rising data needs positively, and efficiently.
  • Evaluation of Technology Ecosystem: Technologies are evolving at fast pace. Many new technologies like Cloud, Artificial Intelligence, and e-commerce solutions are ruling the marketplace. They help in driving the efficiency of business processes and bringing significant cost savings. A robust digital platform will help telecom companies embrace these cutting-edge technologies efficiently, and help them reduce the Total Cost of Operation (TCO), and improve their time-to-market capabilities.
  • Changing Consumer Behavior: Consumer behavior has changed significantly over the last 5-6 years, and it is driven majorly through social platforms. Today, companies are using various digital platforms for marketing their products, and services. Telecom companies need to address this changing consumer behavior to gain a competitive edge. They can use the power of digital platforms to promote their services, or products, as well as attract new buyers, or potential investors.
  • Quest for New Revenue Streams: Telecom companies have been innovative in terms of finding new revenue streams to improve their revenue through increased Cost per Subscriber. Building a digital platform with integrated data analytics will help the telecom service provider make quick and accurate business decisions.

Santosh Kotnis
EVP & CEO (Global Infrastructure Management Services & Cloud Solutions) Futurism Technologies


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