[February 24, 2017] |
|
CSPs Risk Losing Customers to Global Digital Giants, Accenture Survey Finds
Accenture's (News - Alert) (NYSE:ACN) Dynamic
Digital Consumers Survey revealed that if a global digital
giant such as Google (News - Alert) or Amazon launched an offer comparable to their
mobile operator, 44 percent of respondents would leave their provider,
forming a gloomy outlook for Communications Service Providers (CSPs).
This Smart News Release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20170224005040/en/
(Graphic: Business Wire)
The introduction of the eSIM also brings new challenges for CSPs as
switching between providers becomes even easier. The survey found that
68 percent of online consumers would be interested in using a device
with an eSIM with 50 percent saying it was because of the ability to
switch from one provider to another more easily and quickly to get a
cheaper call or data plan, accelerating the race to the bottom for data
and connectivity and further commoditizing CSPs' core business.
Furthermore, competition will increase as new players enter the market
by embedding the eSIMs into the devices at the point of manufacturing,
bypassing the network connectivity provider and going direct to the
customer.
"The traditional CSP (News - Alert) business is becoming commoditized and as a result
they must dramatically accelerate their shift into new markets or the
window of opportunity will close," said Francesco Venturini, global
industry managing director for Media and Communications, Accenture.
"There are opportunities ripe for the taking if CSPs invest in their
core business so it remains healthy, while at the same time pivot to
accelerate innovation and expand their reach to provide new digital
services, offering real value to their customers. To do this they must
change their operating models and break down the silos hey currently
work in to be able to move with the speed and adaptability required to
succeed."
The opportunity for CSPs: Digital ecosystem in the home
An important differentiation CSPs have over the digital giants is the
richness of data available to them because they control the end-to-end
delivery platform right through from back office functions to the
devices, and top-to-bottom from the applications to the network. If they
apply analytics and use this data to their advantage, it allows them to
unlock a broader range of innovative new monetization opportunities and
to further optimize the customer experience.
One area where this can be applied is within digital video, which is
increasingly in demand and provides a huge opportunity not only to drive
new revenue through the content, but also considerably from digital
advertising. With 37 percent of respondents saying they would turn to
CSPs for Pay TV channels and 34 percent for Video on Demand (VOD)
services, the door is evidently open for CSPs to succeed in this space.
The Internet of Things (IoT) is also creating fresh growth opportunities
for CSPs to offer new services. While it is relatively early days, the
connected home, which revolves around machine-to-machine communication
offering cost and time savings to consumers, is quickly becoming a
reality. But with so many connected devices emerging, consumers face
issues with interoperability, usability and security.
The survey found that once consumers do invest in this connected
technology, over half (54 percent) experience challenges. Issues include
being too complicated to use (14 percent), cannot connect to the
internet (13 percent), the set-up does not work (12 percent), among
others such as a lack of personalization, privacy concerns or customer
support.
The home is becoming a connected and personalised ecosystem of services
and CSPs have a significant opportunity to be that single provider to
manage the ecosystem in the home:
-
71 percent of on-line consumers globally who own or plan to purchase
connected home services would choose a telecom operator, if they
offered it
-
CSPs ranked in second position as the preferred providers for
education and learning, home monitoring, online security and storage
for smart devices and services
-
49 percent of consumers would choose a CSP for connected health
services
"The race is on to better serve the evolving and emerging digital
ecosystem in the home," said Venturini. "But with competition advancing,
if CSPs do not make the necessary changes to offer hyper-personalized
services quickly, they are at risk of losing market share and becoming
organizations that purely offer connectivity with no added value, and
that means shrinking revenues."
Methodology
Between October and November 2016, Accenture conducted an online survey
with approximately 26,000 consumers in 26 countries: Australia, Brazil,
Canada, China, Czech Republic, France, Germany, Hungary, India, Ireland,
Italy, Japan, Mexico, Netherlands, Poland, Romania, Saudi Arabia,
Singapore, Slovakia, South Africa, Spain, Sweden, Turkey, United Arab
Emirates, the United Kingdom and the United States. The sample in each
country was representative of the online population. Ages of respondents
ranged from 14-to-55 and over. The survey, and related data modelling,
quantify consumer perceptions of digital devices, content and services,
purchasing patterns, preference and trust in service providers, and the
future of their connected lifestyles.
About Accenture
Accenture is a leading global professional services company, providing a
broad range of services and solutions in strategy, consulting, digital,
technology and operations. Combining unmatched experience and
specialized skills across more than 40 industries and all business
functions - underpinned by the world's largest delivery network -
Accenture works at the intersection of business and technology to help
clients improve their performance and create sustainable value for their
stakeholders. With more than 394,000 people serving clients in more than
120 countries, Accenture drives innovation to improve the way the world
works and lives. Visit us at www.accenture.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170224005040/en/
[ Back To Mobile World Congress's Homepage ]
|