Is the data game still worth the candle for service providers?
2017 promises to be a pivotal year in the telecoms sector as service providers arrive at the tipping point of costs v revenues in the supply of data connectivity, and consequently look to self-service provisioning and software-led automation to re-balance the equation.
One of the big questions for the communications industry, particularly for network operators, is how it should adapt to the threat posed by falling revenues. This is particularly topical as many industry analysts have predicted 2017 to be the year in which we finally see operator revenues per bit drop below slower falling costs per bit.
Although falling operator profits threaten investment in infrastructure, it seems unlikely that regulatory change will be used to limit the attractiveness of over the top (OTT) services such as Skype, WhatsApp and so on, which have heavily contributed to declining revenues. Based on Ofcom’s recent Digital Communications Review, it seems the regulator welcomes the rise of OTT services as a positive outcome for consumers.
Without regulatory change to alleviate the pressure, carriers will target profitability through the reduction of operating expenditure. One way of accomplishing this is through software automation, particularly in the provisioning process, which in our experience is still more labour and process intensive than it needs to be.
As a result, we will see further significant developments to operator portals. The goal for operators is to offer comprehensive but easy-to-use provisioning portals solutions for a range of services, making it possible for channel partners to self-serve and manage an entire solution without excessive interaction with the carriers.
Software automation combined with the advance of self-serve portals has the potential to deliver huge savings in operating expenditure, whilst providing agility when it comes to deploying services. We also expect to see significant developments in cloud services as this is unquestionably a growth area for the communications sector, spanning infrastructure, telecoms, security and delivery of business applications.
Nor should we be surprised to see further consolidation in the mid-market (similar to Daisy’s acquisition of Alternative Networks) as telcos seek to broaden their services and increase potential revenues and margins, while reducing churn in client accounts.
Service providers looking to develop the capabilities of their provisioning portals might find that our Mosaix provisioning platform offers the perfect solution. Providing an extensible enterprise grade framework for data processing and task management, Mosaix provides the building blocks to create service provisioning applications to cater for virtually any product or service.
If you’re interested to find out more about Mosaix or to arrange a demo, contact us at email@example.com