If there is one segment that is going strong despite the Covid 19 induced downturn it is telecom. Everyone needs communication technologies. Still, not everything is rosy on the telecom front. They need to look at additional streams of revenue as traditional ones dry down to a trickle. The answer could lie in hosted PBX Software that will help them to offer IP PBX as a service to hundreds of thousands of existing customers and rope in new ones.
Do telcos need more revenue?
Telecom service operators need more than normal revenues that help them to meet operational expenses. The game of upgrading software and hardware continues with no end in sight and upgrading infrastructure is expensive.
Services such as internet broadband connections generate voluminous traffic but net earnings are low given the intense competition.
The solution is to have additional streams of value added services of which the IP PBX software is a potential, huge earner. Unlike infrastructure upgrades, IP PBX does not entail huge investment in equipment or even personnel. Simply go hosted. The solution provider takes care of everything; telcos start generating immediate revenues, badly needed to meet the emerging 5G/IoT market. If a telecom operator does not offer the latest in tech, it is more than likely they will go under and, so, revenue generation is indispensable.
Some possible avenues of revenues for telecom
The hosted IP PBX software is not the only option but it could well be more attractive. Consider some other areas that telecom operators are exploring:
Payment services and money transfers: this does require a slew of expert personnel and tie up with established banks. It involves some investment and a lot of promotion to sign up customers. Margins may be slim. Orange has chosen to go this route.
Media: VoIP and internet are mainstream. This makes it ideal to push media and offer OTT services through existing VoIP infrastructure, which AT&T has chosen to do but at a considerable investment by acquiring Time Warner. Not all telcos may be cash rich and have the capability to monetize such media acquisition.
TV: Internet TV is attractive and likely to fetch good returns as shown by BT offering Premier League soccer and rugby sports channels through broadband connections.
In case of the last two above, there is competition in the OTT segment, possibly leading to a wafer thin profit margin, not making the investment worth its while. Then there is an additional factor to consider: TV and media mainly target individuals, a customer segment that is diametrically opposite to the enterprise and SME segment that is the bulk consumer of VoIP and internet services. In this context you will find that hosted IP PBX software is more relevant and a better starting point for additional revenue generation by telcos.
Profits, better services, customer retention
All three are significant drivers for success. Hosted IP PBX could possibly be the tool to drive more profits, project an image of a well-rounded telco offering better service and, with more VoIP services from a single source, ensure loyalty.
SMEs are the largest segment of customers consuming VoIP traffic and larger enterprises too fall in this category but with a difference. Large enterprises tend to negotiate rates and pare down profits while SMEs are willing to pay for comprehensive VoIP services that strengthen business communication and help them to thrive.
IP PBX, when you opt for it as a hosted solution, piggybacks on existing VoIP infrastructure. It can be offered to existing customers who are sure to welcome the service offering since telcos (backed by IP PBX software vendor) assure quality services at a better price point.
The hosted multi-tenant IP PBX itself has a number of modules that can be bundled together or offered as individual, chargeable components. Customers are happy since they get what they want. Telcos are happy since they can monetize IP PBX to its fullest without any significant investment upfront and minimum operational costs.
A double benefit is what IP PBX brings to the table: Internal communications improve for the telecom service provider and they are earning by offering IP PBX as a Service. This paves the way for other related VoIP services such as SMS, unified communications, Fax as a Service and so on…and all without upfront investment in software or maintenance or upgrade worries in a more for more strategy.
Telecom service providers do need to stay abreast with the latest tech that involves considerable investment. Looking for more revenues with minimum investment is the way to go and, in this regard, hosted IP PBX could prove to be a winner. You get immediate results in that you can sign up customers with ease and the IP PBX software provider provides the entire set up.