Transformation 2022: Creating Long-Term Sustainable Voice Business
Voice businesses need to rethink their operations if they’re going to be successful in the long term. Revenues have been declining for years but we’ve now reached a tipping point where the pain is too much for international Voice Service Providers. They are either exiting the market or looking at new ways to capture, grow and maintain profitability day-to-day.
According to TeleGeography Report and Database, international service revenues are predicted to fall to $50 billion by 2022. That means Voice revenues will have declined by nearly half in the ten years after 2012. Competition from OTT, VoIP and other communications services has driven the decline in international Voice with OTT apps delivering 40% more international traffic in 2017 than all of the telcos in the world, combined.
To succeed in today’s international Voice market, Service Providers need to transform how they operate and prepare for a future that will be very different from the past. No Service Provider can afford to stand still and keep operating in the same way.
What Needs to Happen by 2022
By 2022, Voice Service Providers need to have adopted new technologies and platforms that enable them to be successful in a new world of Voice that is half the size of the old one. Starting today, they need to prepare for even more challenging environment and take action to ensure their businesses are sustainable and profitable in the long term.
The players that act fast and take a smarter approach to their Voice businesses will be the winners in this new world of Voice. Service Providers that are open to innovation can build new agility into how they operate so they can rapidly recognise new demand and serve it.
The reality for many Service Providers is that they are stuck with legacy processes that no longer solve challenges in today’s market. Outdated products, processes and technologies add very little value to the way they do business.
- Data Management – Service Providers need complete end-to-end management of data from pricing and billing to rating and routing, all in a single platform. It makes managing the complex data simple and speeds up decision making for players of all sizes
- Automation– Automation allows Service Providers to easily manage bilateral deals and automatically optimize routing while generating detailed invoices and statements. They are not manually inputting data, instead, they get insights within seconds. That saves time, money and effort for businesses
- Optimization– Platforms that can monitor and process live data can generate optimum routing plans reflecting costs, quality and business agreements. Service Providers benefit from custom reports that increase their chances of success in the market
- Intelligence– Smart platforms that can take into account cost, quality, bi-lateral and contractual commitments gives organizations unparalleled intelligence. It enables them to simulate scenarios, see what works and make the right decision
- Time to Market– End-to-end interfaces that offer a depth of functionalities means Service Providers can react quickly, capture new revenue and compete on agility while moving faster than their competitors
The Future of Wholesale Telecoms
Service Providers need to better manage and optimize its operations to keep up with the pace of change in the market. They have the opportunity to maximize profits by finding new operational efficiencies. Fortunately, new technologies and approaches are enabling Service Providers to simplify operations in an otherwise very complex Voice market.
By 2022, Carriers need to take these steps to create a sustainable Voice business. With optimized processes, they will be able to instantly react to a market that is changing. From 2022 onwards, they will be better placed to adapt and evolve with the industry.