B2B telecommunications describes communications between businesses. Providers of B2B telecommunication focus on maintaining systems that transmit sound, text, data, video, and voice, allowing direct communications between businesses. Profitability of B2B units in telecommunications is often challenged by the management, tending to run comparatively lower than consumer business owing to high customisation levels, lower margins inherent to IT business, and sophisticated buyers. For construction of a robust B2B business, it is necessary for the management to consider the protection of connectivity of businesses, and understand longer investment payback times.
Identifying Opportunities- A Major Challenge for Telecom Executives
A major challenge for several telecom executives is identifying the opportunities lying beyond the market, which historically fuels their profits, and helps in reshaping their companies & priorities for capitalising on the situation. However it is not easy to embrace new opportunities. Most of the B2B opportunities lie in increasing wallet share, management of migration to IP technologies, reducing churn, and maximising account profitability.
One of the European mobile telecom operators expected to boost the growth of its B2B services by 5%, by reducing churn, identification of underpenetrated customer segments, monetising data, and cross-selling fixed-line services. Trends Market Research, in its report, has provided a detailed analysis on the global B2B telecommunication market. TMR states that the enterprises are adopting new technologies for improving their businesses and the role of IT service providers is crucial in this evolution.
Cloud-based Offerings Accepted Widely across Eastern Europe & Asia Pacific
The global B2B telecommunication market is projected to register an impressive growth at a double-digit CAGR of 13.6% during 2016 to 2026, to surpass US$ 100 Bn by 2026 end. The market is anticipated to reflect an absolute $ opportunity surpassing US$ 77 Bn by 2026, according to FMI’s report. FMI states that hardware and many other complexities tackled by businesses have been minimised by an emerging trend. Cloud-based offerings such as infrastructure-as-a-service, software-as-a-service, and platform-as-a-service are being accepted on a broader scale across the Eastern European and Asia Pacific (APAC) markets, owing to the cost-effectiveness of these services.
Development of Revenue Schemes Based on Basic Principles
Telecommunication companies paid less attention on business-to-business market in the past, owing to thinner margins and smaller revenues generated from it. They are now concentrating on B2B and expecting growth, outpacing consumer telecom business. Paving ways to grasp opportunities in B2B would incur challenges for some companies, as their B2B groups are not provided with sufficient resources, and extremely low responsibilities are adhered to these units in an organisation. Although these companies seek business opportunities, their efforts often get diffused among too many projects, which results in overlooking of opportunities in core connectivity businesses of the organisations. However, they can make changes and get their revenue schemes developed by focusing on following three principles-
- It is necessary for telecoms to train their sales team for selling bundles for solving business problems of customers, instead of selling individual products and services which are more susceptible to price comparisons. Telecoms require to construct their skills in technology domains which they have decided to specialise in. Some would need to attain or enter into a partnership with other firms for attracting right capabilities.
- For building a picture of overall health of relationship, telecoms require to measure customer satisfaction along with the individual episodes. Improving operations, customer loyalty, and frontline behaviours requires customer feedback loops. However, the customer being actual collection of people including ones who pay bills, decision makers, and users, adds to the complexity of B2B environments.
- To reflect the division’s importance, B2B team of an organisation must get a fair share of the top talent and be made to report to higher authorities of the organisation, with representation on executive committee.