Mobile operators face digital dilemma

An overwhelming 89% of mobile operators admit that OTT and other digital content providers can rollout new services in just within six months, while nearly a third say it takes at least a year for them to do the same, according to Tecnotree.

A survey of 46 global mobile operators conducted by mobilesquared also found that 69% of operators expect to see a rise in the usage of digital and digital-content services from customers travelling to Europe, as a result of European Union roaming legislation. 

“While traditional telco competitors are still a concern for mobile operators, OTT providers, spearheaded by the likes of Facebook, Netflix and Square, that are far quicker to market with new services, pose a bigger threat,” said Timo Ahomäki, CTO of Tecnotree.

“In order to better compete in the race, operators must transform into a digital service provider,” said Ahomaki. “This involves a much higher level of customer interaction, with greater quality of service and quicker delivery.”

However, almost half of mobile operators still need to update various legacy Business and Operational Support System (BSS) infrastructures every time they want to deliver new digital services to their customers.

Just 21% have made the move to fully integrate billing functions within their digital product set. However, the time it takes to replace all, or significant parts, of the stack with a new BSS present a further challenge with 37% of mobile operators saying it takes at least a year.

While they recognize the importance of providing a personalized service package, or product catalogue that is more relevant to customers, 30% of mobile operators say that CRM & profiling issues are the biggest barriers to achieving this.

Finally, in identifying which digital services they believed would offer the most value for them in the next twelve months, operators identified M2M (38%), video on-demand services (38%) and TV (36%).