There has been a significant change in the way that people communicate and use mobile technology services during the past five years. The rising of 3g and 4g LTE connectivity had no small part to play in this: it has been one of the major catalysts that shift away from traditional telecom services such as voice and SMS to a more data-centric overall mobile experience.
The rise of OTT applications and social media had a big impact on the way that we, as customers, use our mobile phones. When connected to the internet, we can now replace traditional telecoms services using different internet-based OTT applications, whether it be Facebook messenger or WhatsApp for messaging different people and different groups of people or you can also use this kind of application for calling in the way Skype and Viber works. Even the native operator voice-calling services will eventually be transferred over the internet.
Telecom industry, in particular, is coming to the thinking that a whole new business model is critical to survival and growth in the digital marketplace. In order to stay ahead with the trend, communication service providers now have to course towards becoming digital service providers.
The term “digital service provider” meaning applies to any company that distributes media on the internet. In the case of different telecommunications companies, it’s an organization that has moved on from offering traditional, core services to providing mobile broadband access, content, application and services to people all sold directly from the device.
The transition to DSP has been driven by the consumption of the public of cellular data, accelerated as LTE services are being deployed quickly alongside different 3g services. It’s an online, real time business that deals with countless transactions every day, having high volumes of data traffic and multiple devices per user and often too many multiple users per account. The landscape of mobile technology has changed dramatically and CSPs are tuning their businesses and their overall network infrastructure to cater for the digital needs and to serve all of their clients.
Traditional CSPs currently do most of their business through traditional retail and call center channels whereas DSPs conduct more than 80% of their transactions through different online digital channels much like any other web services giants.
There are also new propositions and products that can be rolled out that sets the best digital service providers apart from the traditional communication services providers: they are more agile and the development cycles are much more cheaper and shorter therefore all round they are technically far more profitable.
As they take the DSP journey, CSPs will be able to make some costs of running traditional customer support operations because new IT systems will handle and facilitate the transition to mobile self-care applications. These apps will allow customers and organizations to very quickly manage their own accounts, receive alerts about promotions, spending or account changes. They can also personalize their services and make new service purchases. They can share the product or the service that they avail with their family or work groups.