IT & Telecom
As the United States calls for complete lockdown and imposes restrictions on movement, network usage is skyrocketing. This has put enormous pressure on companies in the US telecom industry to continue delivering critical services to customers. Although large players in the telecommunications industry invest millions of dollars into networks, operations, and other industry trends, sometimes their performance can be inconsistent, resulting in poor service, dissatisfied customers, and declining profits. As such, companies in the US telecom industry are in the need to focus on efficiency, agility, and customer-centricity and restructure themselves in terms of operations, architecture, and networks.
To succeed in the long-run, companies in the telecom sector will need to identify potential market risks and realign business models. We can help you achieve these strategic goals. Request a FREE proposal today.
The client is a telecom service provider based out of the United States
The shift to remote work as an impact of social distancing enhanced the demand for networking infrastructure and connectivity for the US telecom industry client. However, the sudden surge in demand made it difficult for the client to increase network resiliency and reliability for their consumers. This subsequently resulted in customer dissatisfaction. Also, owing to multiple service requests at the same time, the US telecom industry client faced difficulties in helping customers in upgrading their services to cope with higher bandwidth requirements.
The US telecom industry client even noted an increase in churn rate as its competitors offered internet speed-booster packages and higher-performing fiber-optic broadband services. The client, therefore, wanted to undertake steps to provide continuous delivery of critical infrastructure and fulfill customers’ priorities around network maintenance. They chose to partner with Infiniti Research to leverage their expertise in offering market intelligence solution.
Other key objectives of the US telecom industry client were:
- Increasing security and infrastructure risks for customers
- Rising manufacturing delay of network equipment such as fiber-network
- Reassessing supply chain to uncover weak links
- Improving tech-enabled functionality to ensure timely access to required information
- Understanding customers’ needs and demands
As the needs and demands of customers are increasing, companies in the US telecom industry must take a more informed approach to simplification of business process to succeed in the long-term. Our market intelligence solutions can help you achieve all your business goals. Contact us here.
Our Integrated Approach
The experts at Infiniti Research followed a three-phased approach.
In the initial phase, the experts conducted strategic engagement and scenario analysis to help the US telecom industry client review insurance coverage, systems capabilities for remote workers, and cyber readiness. This phase of the engagement also involved prioritizing cybersafe remote technology capabilities to transition employees to work remotely while maintaining productivity.
The second phase of the engagement involved providing hand-on guidance during portfolio strategy and valuation. This phase of the engagement also involved reassessing the client’s supply chain to uncover weak links, increasing transparency in communications with stakeholders, and adjusting the support model as per the US telecom industry client’s requirements.
The third phase of the engagement involved evaluating financial reporting requirements and communicating current and potential future impacts to shareholders. This phase of the engagement also involved improving tech-enabled functionality to ensure timely access to required information and revaluating cost structures.
Infiniti’s market intelligence engagement enabled the US telecom industry client to help their customers in upgrading their services to cope with higher bandwidth requirements. Also, as recommended by the experts at Infiniti Research, the client created an ad hoc support team to assist healthcare companies, pharmaceuticals, and other critical services.
The experts also helped the client to identify third-party service providers to help them in deploying feedback management tools. This subsequently helped the client to better understand and anticipate customer needs and take proactive measures at times of immediate needs. By analyzing the client’s supply chain processes, the experts recommended the client to diversify supplier base across geographies to avoid single points of failure and increased exposure due to regional outages.
By understanding customers’ needs and demands, the client was able to reach out to customers and provide information to alleviate their concerns. Also, by performing assessment of processes and functions with high manual intervention and critical third-party dependencies, the client was able to understand key risks, including single points of failure.
Infiniti’s market intelligence engagement helped the US telecom industry client to increase network resiliency and reliability for their consumers, revamp supply chain processes, improve tech-enabled functionality, and realize savings of over $3.3 million.
Want to gain more insights into our services for companies in the US telecom industry? Request more info here.
Despite the ongoing convergence with other industries and a slight revenue uplift through innovative technological transformations, the telecom sector is still stalled in a low-growth mode.
To overcome major roadblocks to growth, telecom companies are embracing emerging technologies with the aim to lay increased focus on efficiency, agility, and customer-centricity in their services. However, this may not be enough to sustain growth in the long run. Amidst the growing uncertainties in the market such as the dynamic mix of growing Capex burdens, changing market structures, and regulatory and policy reforms, it is vital for telecom companies to rely on a telecom industry risk assessment before the leap to digital transformation. Infiniti’s telecom industry risk assessment experts suggest that unless companies in the telecom industry put customers at the forefront, they will struggle to succeed. Here are some of the biggest telecom industry risks that we have identified.
Ineffective digital transformation and growth strategy
Our telecom industry risk assessment suggests that one of the biggest challenges faced by telecom operators is to generate growth from digital services. Developing innovative business models, seizing opportunities for inorganic growth, new service inclusions, and diversification through M&A and strategic alliances can help telecom sector companies to better capitalize on growth opportunities.
Rising Capex burden
Global telecom operators are undergoing a new wave of network investment. This ranges from 5G and low-power wide-area networks to gigabit fiber. However, the returns on this Capex is often uncertain because advanced technologies such as 5G are still in the early development stages and broadband as a utility tends to pose major threats to the premium pricing of fiber connectivity. In this scenario, making the right choices relating to infrastructure switch-off, spin-off, and sharing is increasingly important.
Changing regulatory framework
There is an increasing regulatory focus being given to aspects such as data protection. As a result, traditional burden on operators including wholesale pricing and interconnection are becoming more relaxed. On the flip side, other areas of regulations are in flux for telecom providers. Furthermore, government’s industrial policies are also creating new demands for companies in the telecom industry. Our telecom industry risk assessment experts are of the opinion that it is critical for operators to balance and navigate the changing policy landscape.
Inadequate workforce planning and design
Effective talent management is still not given a strategic priority in the telecom industry. Infiniti’s telecom industry risk assessment experts state that this could prove menacing for telecom industry players. Reshaping and reskilling the workforce capacity is important for telcos. To avoid such organizational silos, companies in the telecom industry must undertake a holistic approach to workforce design.
Lack of efficiency in portfolio management
Infiniti’s telecom industry risk assessment suggests that inadequate planning and management is one of the primary reasons why most telecom operators fail to achieve the synergies that they target to achieve from M&A agreements. As convergence and disruption remain to accelerate in the telecom industry, inorganic growth remains vital for companies in the sector. This calls for telecom providers to establish more flexible integration road maps and smarter management of their business portfolios.
How can Infiniti’s telecom industry risk assessment help?
The telecoms sector is currently at the heart of digital disruption and transformation. Given this current landscape, the key question that telecon industry companies need to address is whether they are embracing the right opportunities coming their way and focusing on the right risks that need to be overcome.
Our team of telecom industry experts can help you identify and prioritize your digital transformation and risk mitigation needs across:
- Customer experience and loyalty
- Service portfolio diversification
- Renewal of legacy systems and operations
- Regulatory and legal compliance requirements
In all of the above given strategies and more, Infiniti’s dedicated team of telecom industry analysts can help you develop the right long-term strategy and leverage the most out of digital disruption opportunities that come your way.
Telecom Sector Overview
Although the telecom sector has become essential to the daily lives of the world’s consumers and businesses, the industry remains stuck in a low-growth mode. Inability to scale internal digitization initiatives, failure to prioritize workforce planning, inefficacy to combat the growing CapEx burden, and failure to adapt to changing regulatory frameworks are some of the major risks faced by companies in the telecom sector. To succeed in the long-run, companies in the telecom sector will need to identify potential market risks and realign business models.
The client is a telecom company based out of the United States.
Despite the potential revenue uplift from 5G and internet of things (IoT), the company witnessed a huge decline in their market share and faced tough competition from other major players in the US. The client realized that unless they put customers at the front and center of their strategies, they’ll struggle to succeed. Therefore, the client needed to identify market risks, analyze competitors’ initiatives, and make actionable business decisions. To do so, they approached the experts at Infiniti Research to leverage their expertise in offering market intelligence solution.
Other major challenges that the client encountered include:
Telecom sector challenge #1: Ineffective digital growth and diversification strategy
Although digital services were one of the top priorities for the client, they faced difficulties in generating growth from these services. The client, therefore, wanted to analyze how their competitors leveraged digital services, maximized their addressable market by developing innovative business models, and seized profitable market opportunities.
Telecom sector challenge #2: Underestimating changing imperatives in privacy, security and trust
Owing to GDPR or General Data Protection Regulations, consumers’ concerns about the use of their online data are continuing to increase. The client, therefore, needed to ensure that their customers’ data and experiences are safe and secure. Therefore, they wanted to identify all the compliance risks in the US telecom sector.
Telecom sector challenge #3: Inability to combat the growing CapEx burden
Leading telecom operators across the world are facing a new wave of network investment, ranging from 5G and low-power wide-area networks to gigabit fiber. Despite this, the returns on this CapEx remain uncertain. By thoroughly analyzing the US telecom sector, the client wanted to make the right choices around infrastructure switch-off, spin-off, and sharing.
The experts at Infiniti Research followed a three-phased approach that involved:
Technology assessment to identify the next technological breakthrough and identify the cost-effective technologies leveraged by the client’s key competitors. The experts also analyzed the digital technologies gaining popularity in the US telecom sector.
Risk management solution to identify financial, compliance, strategic, and operational risks in the US telecom sector.
Market opportunity assessment to analyze the market changes and industry developments in the US telecom sector.
By gathering comprehensive insights into the US telecom sector, the client was able to develop innovative business models and seize opportunities for inorganic growth, service innovation, and diversification through M&A and strategic alliances. Also, they were able to keep up with regulatory requirements and ensure the safety of consumers’ data. In addition, by identifying workforce challenges, they were able to prioritize workforce planning and build employee engagement.
By identifying profitable opportunities in the US telecom industry, they were able to make the right choices around infrastructure switch-off, spin-off, and sharing. Furthermore, the company developed actionable risk management strategies to tackle rising market risks.
The company was able to better compete in the market, in terms of capabilities, prices, and service offerings. Within eight months of leveraging our market intelligence engagement, they were able to enhance market share by 37%.
“The changing customer demands, internet of things, and evolving ICT innovations are making US telecom industry far more complex than they were a decade back,” says a market research expert from Infiniti Research.
US Telecom Industry Outlook
The rapid pace of transformations in the US telecom industry has brought about bigger opportunities for companies operating in the telecom industry. In addition to opportunities, telecom providers are facing a lot of challenges today. Telecom providers are also facing difficulties to revamp their business strategies and restructure themselves in terms of operations, architecture, and networks to stay relevant in today’s competitive marketplace. Furthermore, to succeed, telecom companies need to focus on providing customized solutions to their customers and developing long-term relationships with them.
A European telecom company wanted to gain complete insights into the threats and opportunities in the US telecom industry before making market expansion. By gathering comprehensive insights into the US telecom industry, they wanted to revamp their business models to meet the demands of the rapidly evolving marketplace. To do so, the client approached the experts at Infiniti Research to leverage their expertise in offering market intelligence solution.
With Infiniti’s market intelligence engagement, the client also wanted to tackle challenges such as:
US telecom industry challenge #1 – Advent of digital technologies
With major telecom companies investing heavily in digital technologies and information and communications technology (ICT) innovations, the client wanted to understand how digital technologies will reshape the landscape for new telecom companies.
US telecom industry challenge #2 – Need for better operational support
The client noted that operational support services such as order fulfillment, service configuration, and customer care services were becoming increasingly complex in the US telecom industry. These challenges were subsequently increasing the financial overhead for companies in the US telecom industry. Therefore, with Infiniti’s market intelligence engagement, the client wanted to analyze processes adopted by top telecom companies in the US to ensure better operational support for customers.
US telecom industry challenge #3 – Security and operational risks
To provide high-quality and reliable data and voice services, telecom service providers are compelled to upgrade their IT and connectivity infrastructure. However, this has increased security threats for companies operating in the US telecom industry. With Infiniti’s market intelligence solution, the client wanted to identify all operational and security risks in the industry and tackle them.
With over 15 years of experience in serving many companies across the globe, our experts helped the client to devise a sound market entry plan to enter the US telecom industry.
By conducting market opportunity analysis, our experts helped the client to review all barriers to market entry and assess markets’ readiness for new offerings, including digital technologies and ICT innovations. With our help, the client was able to understand how digital technologies will reshape the US telecom industry in the years to come.
Our market research experts also conducted competitive intelligence engagement. This phase of the market intelligence engagement helped the client to analyze the business strategies adopted by top US telecom services providers.
The experts also conducted a risk assessment. This phase of the engagement helped the client to identify current and potential risk in the US telecom industry. By understanding risks impeding the business operations of telecom service providers in the US, the client was able to take proactive approaches to tackle them.
The experts at Infiniti Research even evaluated the capital requirements for entering the US telecom industry and identified the right partners to support the client’s business processes.
The insights obtained from Infiniti’s market intelligence engagement helped the client to understand US telecom industry size, market opportunities, US telecom industry growth rate, and potential risks. Our experts also helped the client to gain a deeper understanding of the US telecom industry challenges. Furthermore, the experts supported the client in building strategies to respond to competitive threats.
The experts also helped the client to devise risk management strategy and evaluate the potential for their services in the US telecom sector. This helped them to successfully establish their business operations in the United States. Also, within two years of entering the new market, they were able to establish themselves as one of the top 10 telecom service providers in the US.
US Telecom Industry Trends