from MTHULISI SIBANDA in Johannesburg, South Africa
JOHANNESBURG – COMMUNICATIONS service providers have been urged to make the most of new opportunities in living services to maximise their revenues.
The call by Peter Sinclair, Managing Director for Communications, Media and Technology business at Accenture in South Africa, comes amid the competitive landscape for Communications Service Providers (CSPs) shifting.
With barriers to entry collapsing, a new class of digital competitors is leveraging scale to spend far more than traditional providers can on engineering resources, product innovations and customer experiences.
For example, one of the leading Over-The-Top (OTT) provider of streaming video spends more than 20 times as much on customer recommendations as the average pay TV provider, and has roughly five times more resources who describe their roles as primarily dedicated to customer experience and user interface (UI).
“These digital disruptors have established a new standard of simplicity for the customer experience and a rate of new feature introduction that incumbents in both communications and media are struggling to match,” Sinclair said.
Sinclair added CSPs can now can take advantage of the emergence of a new, exciting world of living services, starting with services to the home, that is creating new ecosystem value chains and new potential for profitable revenue growth.
He pointed out “Smart home” technology uptake had been slowly building over the last few years, with early-adopter consumers introducing elements such as connected security, smart thermostats and voice activation systems into their homes.
Accenture projects consumer mass market uptake and ease of use for the smart home will be driven through integration.
This is driven by demand.
Accenture research found that 80 percent of consumers surveyed want a single provider for all their digital needs.
CSPs need to develop platform businesses and ecosystems that deliver everything their customers want together in one integrated offer.
“If CSPs can create the platform of choice for customers and third-party businesses alike, then the smart home opportunity will prove extremely fruitful,” Sinclair said.
– CAJ News