Observation on Trends In 2002, the number of Mobile Subscribers (1.17b) surpassed for the first time the number of fixed lines (1.09b) worldwide In 2005 the number of Mobile Subscribers on every continent exceeded the number of fixed lines in service In terms of growth, the number of Mobile Subscribers almost Doubled (2.18b) while that of fixed barely grew (1.23b) in 2005
Africa: Subscribers (mil)400350300250 Mobile Broadband Mobile Subs200 Fixed Lines Fixed Broadband150 Internet Users100 50 0 2005 2006 2007 2008 2009 2010 Source: ITU 2011.
Africa: Penetration (100 inhts)50454035 Fixed Lines30 Mobile Subs25 Mobile Broadband20 Fixed Broadband15 Internet Users1050 2005 2006 2007 2008 2009 2010 Source: ITU 2011.
Observation Africa is the fastest growing mobile market in the world (ITU) A major reason for the boom is that Africa lags far behind other continents when it comes to fixed-line phone subscribers Africa lacks an investment-intensive infrastructure, e.g., fixed telephone line and fixed broadband infrastructure the large costs of stringing up telephone wires so far has not been economically viable The establishment of mobile phone networks has also defied structures hostile to investments, warfare, failed states and natural disasters Intense competition has pitted once powerful monopoly fixed Networks against rapidly growing Mobile Networks
Challenges Facing Fixed Network Lack of investment-intensive infrastructure, e.g., fixed telephone line and fixed broadband infrastructure High costs inputting up Fixed Network to address the raising Demand Liberalization of the Telecommunication markets v. Readiness of the Fixed Operators to compete Decline of Fixed Telephony Revenues and subscribers Business models, company culture, organizational structure and identities of Fixed Operators Thus Fixed line Sector remains the least dynamic sector – While the number of fixed lines have been falling in Developed counties, they are developing very slow in developing world (ITU)
What Next For The Fixed Operators? Retention Strategies
Manage Customer Process Identify Customer Transforming the Expectations Business Models Align the StrategicIntegrate Measureacross the Customer Choices and Business Lifetime Value capabilities to the specific needs of the customers Greater Customer Manage Intimacy Manage Customer CustomerExperience Information as Need based strategic Asset Segmentation Align Strategy with Customer Time to deliver Values and Expectations Source: BMI Institute of Business Value
Elements of Customer Life Cycle • Awareness • Acquisition Identify Brand Retails Shops, values for Different Websites, target segments to multichannel contact centers are critical inform Innovative customer Touch points Market & Product that can provide campaign differentiation Billing and Network Features, Payment, customer innovative services care, marketing and solutions and other intelligently priced communication and bundled are present critical for Revenue opportunities for stimulation and improved customer differentiation experience • Retention • Growth
1. Customer Delight Meeting and exceeding customer expectations Understand customers, and then acquire and deploy resources to ensure their satisfaction and retention Going beyond what would normally satisfy the customer. Being aware of what it usually takes to satisfy the customer and what it might take to delight or pleasantly surprise the customer.
2. Customer-perceived value Companies can explore ways to create additional value for customers The ideal is to add value for customers without creating additional costs for the company If costs are incurred then the value-adds may be expected to recover those costs e.g Loyalty schemes Customer clubs Sales promotions
3. Bonding Social bonds positiveinterpersonal relationships between people on both sides of the customer-supplier dyad Structural bonds when companies and customers commit resources to a relationship. these resources yield mutual benefits for the participants Resources committed to a relationship may or may not be recoverable if the relationship breaks down
4. Build customer engagement Highly engaged customers have levels of emotional or rational attachment or commitment to a brand, experience or organization that are so strong that they are highly resistant to competitive influence
Convergence • Seamless connectivity between fixed and Fixed Mobile wireless telecommunications networks Convergence • Provide services to users irrespective of location, access technology, and (FMC) terminal. • Build and offer multiple services out of, integrated or converged networks, fixed and mobile • Wide coverage remains the viable & Cost Telco Media effective option for deploying services • Broadband technologies enable Convergence operators to broadcast or stream multimedia signals to their subscribers (TMC) • Engage in complex web of collaboration with the media and entertainment, IT • Partner to create value
Triple Play/Quad play Explosion in data service revenues High demand of data related services Narrow Consumer Options and search costs Triple play: the provision of two bandwidth- intensive services - high speed internet access and television – with a less bandwidth- intensive service, fixed line telephone. Quadruple Play is a triple Play that adds Wireless or Mobile telephony Services
International Data Cables Arrival of several international data cables Rising demands for major Bandwidths Cross border connectivity Backhaul connectivity is crucial because it enables transmission of intra-regional and other international traffic
Existing Service Make use of all services available in the Fixed Network Corporate services and solutions such as data virtual private networks (VPNs) and multi-protocol label switching (MPLS) Data products and services such as broadband and fixed- lines Whole sale Business: providing guaranteed bandwidth to businesses between major commercial centres
Conclusion Fixed-line telecommunication Opportunity as backbone providers (fiber optic network, for the Internet, and fixed lines still provide the fastest data speeds by far) Growing customer demand for higher bandwidths and the time to deliver Customers do not care what technology is used to transmit their data or how the Functions they use are supported. Their primary concern is service that addresses their needs Success will depend on each players ability to combine its own differentiating strengths (such as Customer Management, network assets and service creation with the capabilities of partners to create seamless communication services that meet the needs of targeted customer segments - IBM