CSP focus turns to generating revenue from enterprises
As 5G arrives, private networks start to gather momentum and new applications enabled by artificial intelligence (AI), machine learning and software-based network control transform telecoms.
VanillaPlus caught up with Sam Barker, the head of analytics and forecasting at Juniper Research, to understand where the opportunities lie for communications service providers (CSPs).
VanillaPlus: CSPs continue to need new sources of revenue and to increase revenue from existing services. Is it fair to say the enterprise or business-to- business market has been overlooked amid the excitement over potential 5G consumer revenue? Isn’t it the reality that the real money in telecoms comes from enabling communications for enterprises?
Sam Barker: Network operators’ revenue comes from multiple sources, however they all generate revenue streams from their network infrastructure, including voice, messaging, Internet of Things and international roaming. Whilst the majority of revenue is generated from costs levied on mobile subscribers, it is more evident than ever that CSPs must now explore the B2B markets to grow revenue.
The traditional mobile pillars of SMS messaging and peer-to-peer (P2P) voice calling are in decline. Although the global pandemic brought about a change of consumer habits, with mobile commerce growing quicker than forecast out of necessity, and voice calling seeing an upturn in lieu of face-to-face interaction, the general trend suggests that over-the- top (OTT) messaging and calling services offered by third-party providers will continue to impact CSPs’ revenue.
However, there are other revenue streams that CSPs must now focus on: mobile commerce, mobile identity, carrier billing and application-to-peer (A2P) voice functionality all offer tangible alternative revenue opportunities for CSPs that put the cost onto the enterprise. Indeed, Juniper Research’s reports into areas including A2P Messaging, Flash Calling, CPaaS and Conversational Commerce, all expose a single trend; that scaling up CSPs’ revenue involves increasing B2B services
Plus! Analyst Report: Mobile authentication is driving increased business messaging volumes, reports Juniper Research – on page 12