2013 Trends: Tim Yates, CEO, Business Logic Systems

In 2013, there will be a continued shift in focus for Communications Service Providers (CSPs) from ‘volume-led’ acquisition growth to a ‘value-based’ retention and growth strategy...

There will be a continued shift in focus for Communications Service Providers (CSPs) from ‘volume-led’ acquisition growth to a ‘value-based’ retention and growth strategy. This involves a significant change of approach with the building of new capabilities that focus on building loyalty and driving incremental Customer Lifetime value, either by extending tenure and or extending usage to new services.

As demand for more data services/devices increases we will see the adoption of new, faster (LTE) networks. Informa is predicting that 21 operators in Africa will adopt these new LTE networks during 2013. On the back of these new networks, CSPs will need new up-sell and cross-sell capabilities that will enable them to offer tailored bundles and proactive communications to help subscribers optimise their data speeds (e.g. ‘sign-up to turbocharge speed for 2 hours to watch a movie’).

Over-The-Top players present a longer-term challenge, but in 2013 their traction will deepen by taking ARPU, Customer Relationships, and brand equity, away from CSPs. We expect to see CSPs begin to develop, test, and implement strategies that will convert their single-sided business model into a two-sided model that leverages their customer insight into an ecosystem of content owners, advertisers and media brokers.

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