Has Disruption Come Calling for the Telcos?
When was the last time you sent an SMS? Or made an international call? For many of us, it might be easier to remember when we last used a messaging application, or made a call over the Internet. With consumers moving away from traditional telecommunications services like talk time and international roaming services, traditional telecommunications service providers have to adapt – and fast – before they get left behind.
With digitalisation and the entrance of new players into industries like transportation, hospitality and banking, disruption seems to be on the cards – for everyone. And while the telecommunications industry has been largely spared till now, thanks to the way the industry was structured previously, it looks like a new period of restlessness has arrived.
SAME GAME BUT DIFFERENT PLAYING FIELD
It used to be that for a telecommunications company (telco) to succeed, it had to have the biggest network so that it can offer the best coverage. Therefore, for a new player to enter the market, considerable resources had to be invested in infrastructure development.
NEW PLAYERS ARE NO UNDERDOGS
With the problem of physical infrastructure out of the way, barriers of entry are now greatly lowered. It provides new entrants like Circles.Life an opportunity to break into the market and win by offering superior customer experience – instead of merely a pipe for services.
IT CAN BE ANYONE’S GAME
This is not to say that the telcos who have been in the industry since the early days are not aware of what the customers want. The problem is that they are beset with legacy plans and existing operational setups. But one can be certain that they are definitely evaluating their strengths and looking at how they can reposition their offerings.