Gone are the days when Telcos were the gatekeepers of all communication services. The rise of apps and social media platforms like Whatsapp and Facebook have effectively made communication free to the general population, who carry these channels around with them on their mobile devices.
With the demand for traditional mobile services, like voice calls and text messages, ever on the decline, customer churn and dwindling revenues are becoming increasing concerns for mobile network operators (MNOs). As an MNO, evolving and adapting needs to be part of your DNA to remain competitive and relevant to customers.
The telecom industry is experiencing technological growth and innovation never seen before, propelled forward by the advent of 5G broadband as well as the internet of things (IoT) capabilities. Artificial intelligence (AI) is currently experiencing a boom, with many mobile network operating (MNO) companies adopting AI to assist in their complex management operations. With its multipurpose and multifunction capabilities, AI has the potential to be a key driver for growth in numerous areas, ranging from infrastructure maintenance to sales and retail operations.
Mobile Network Operators (MNOs) currently find themselves in a bind. Their primary service – the service which has, up to this point, always defined their identity – of instant communication no longer has the value it once did. Landline, mobile and broadband services have all been eclipsed by instant messaging services and social platforms powered by wireless connectivity. And MNOs are feeling the sting in their pockets. By no longer being the gatekeepers of analogue and digital communication, operators are struggling to redefine themselves in a post-call landscape.
For mobile network operators, churn is an ongoing concern – one thatis, unfortunately, worsening instead of improving. MNOs face incoming challenges from every direction, market saturation,stiff competition both inside and outside the mobile communications industryand growing customer disinterest in the services they’ve always offered. The mobile network industry is getting more saturated by the day. Newmobile network service providers are entering the market daily, offering morefor less and compelling customers to window shop, impacting their loyalty.
According to the World Bank, around 2 billion individuals around the world remain unbanked and have no bank account. These people struggle to access basic banking services like loans and credit and are drastically underserved by these financial institutions. MNOs, with their vast access to customer data, are in a unique position to step in and help bridge the gap between banks and the underbanked. Airtime-based credit scoring is the way to do this. Through airtime-based credit scoring, MNOs can safely and incrementally offer credit to existing customers without taking on exorbitant risk and ultimately increase their bottom line. Dubbed the “mobile identity market”, credit profiling based on advanced airtime usage represents a lucrative opportunity for pursuing new service avenues and growing their customer base. Read on to learn how airtime-based credit scoring can help MNOs and the underbanked.
As remote work becomes a permanent fixture and mobile connectivity becomes an integral part of daily life, telcos are facing the challenge of meeting evolving customer expectations.
Within the telecommunications industry, telcos face a constant battle against churn. It can be difficult to do this, as the industry is heavily saturated and competitive, with new entrants emerging regularly offering their unique products, plans and packaging.The nature of the telco industry has evolved as well. Offering extensive mobile and broadband services is no longer enough to remain competitive. International fintech giants are drawing customers in the telco industry to their services like moths to a lamp. With ARPU and churn becoming increasing concerns for Mobile Network Operators (MNOs), the two key questions on all telcos’ minds are: How can they increase their ARPU while reducing churn? In other words, how can they win – and keep – customers for the long term?
It can be difficult to keep track of the rapid pace of change happening in tech and services across the African continent. The widespread adoption of feature smartphones coupled with the rising demand for access to mobile banking, mobile money lending and spending have turned Africa into a global mobile money wallet hub.A report from GSMA states that out of the 1.2 billion registered mobile money accounts around the world, 560 million are registered in Africa alone.
Handset financing is a contentious issue within the mobile network operating industry. Everyone is talking about it and everyone wants it, whether they’re an MNO or a customer. It’s not hard to understand why. From an MNO’s perspective, handset financing is a lucrative, low-risk means of onboarding new mobile customers or upgrading existing customers. Customers also love the idea of receiving a mobile device without the hefty up-front price. Despite its obvious benefits, handset financing is not as easy to procure from airtime and data suppliers, or financiers, as one might think. Often, MNOs assume it’s a simple turnabout solution to implement, but the reality is far from that. So should MNOs give up on handset financing as a means of revenue generation? Definitely not. Handset financing is a viable means for MNOs to increase their revenue, but the “how” is a little more complicated than the “why”. Let’s take a closer look at why this, and how MNOs can use handset financing to their advantage.
