CSPs Risk Losing Customers to Global Digital Giants, Accenture Survey Finds
February 24 2017 - 3:59AM
Business Wire
Services Can Lead to New Growth; Connected Home
and Digital Video Offer Significant Opportunities
Accenture’s (NYSE:ACN) Dynamic Digital Consumers Survey
revealed that if a global digital giant such as Google or Amazon
launched an offer comparable to their mobile operator, 44 percent
of respondents would leave their provider, forming a gloomy outlook
for Communications Service Providers (CSPs).
This Smart News Release features multimedia.
View the full release here:
http://www.businesswire.com/news/home/20170224005040/en/
(Graphic: Business Wire)
The introduction of the eSIM also brings new challenges for CSPs
as switching between providers becomes even easier. The survey
found that 68 percent of online consumers would be interested in
using a device with an eSIM with 50 percent saying it was because
of the ability to switch from one provider to another more easily
and quickly to get a cheaper call or data plan, accelerating the
race to the bottom for data and connectivity and further
commoditizing CSPs’ core business. Furthermore, competition will
increase as new players enter the market by embedding the eSIMs
into the devices at the point of manufacturing, bypassing the
network connectivity provider and going direct to the customer.
“The traditional CSP business is becoming commoditized and as a
result they must dramatically accelerate their shift into new
markets or the window of opportunity will close,” said Francesco
Venturini, global industry managing director for Media and
Communications, Accenture. “There are opportunities ripe for the
taking if CSPs invest in their core business so it remains healthy,
while at the same time pivot to accelerate innovation and expand
their reach to provide new digital services, offering real value to
their customers. To do this they must change their operating models
and break down the silos they currently work in to be able to move
with the speed and adaptability required to succeed.”
The opportunity for CSPs: Digital ecosystem in the
home
An important differentiation CSPs have over the digital giants
is the richness of data available to them because they control the
end-to-end delivery platform right through from back office
functions to the devices, and top-to-bottom from the applications
to the network. If they apply analytics and use this data to their
advantage, it allows them to unlock a broader range of innovative
new monetization opportunities and to further optimize the customer
experience.
One area where this can be applied is within digital video,
which is increasingly in demand and provides a huge opportunity not
only to drive new revenue through the content, but also
considerably from digital advertising. With 37 percent of
respondents saying they would turn to CSPs for Pay TV channels and
34 percent for Video on Demand (VOD) services, the door is
evidently open for CSPs to succeed in this space.
The Internet of Things (IoT) is also creating fresh growth
opportunities for CSPs to offer new services. While it is
relatively early days, the connected home, which revolves around
machine-to-machine communication offering cost and time savings to
consumers, is quickly becoming a reality. But with so many
connected devices emerging, consumers face issues with
interoperability, usability and security.
The survey found that once consumers do invest in this connected
technology, over half (54 percent) experience challenges. Issues
include being too complicated to use (14 percent), cannot connect
to the internet (13 percent), the set-up does not work (12
percent), among others such as a lack of personalization, privacy
concerns or customer support.
The home is becoming a connected and personalised ecosystem of
services and CSPs have a significant opportunity to be that single
provider to manage the ecosystem in the home:
- 71 percent of on-line consumers
globally who own or plan to purchase connected home services would
choose a telecom operator, if they offered it
- CSPs ranked in second position as the
preferred providers for education and learning, home monitoring,
online security and storage for smart devices and services
- 49 percent of consumers would choose a
CSP for connected health services
“The race is on to better serve the evolving and emerging
digital ecosystem in the home,” said Venturini. “But with
competition advancing, if CSPs do not make the necessary changes to
offer hyper-personalized services quickly, they are at risk of
losing market share and becoming organizations that purely offer
connectivity with no added value, and that means shrinking
revenues.”
Methodology
Between October and November 2016, Accenture conducted an online
survey with approximately 26,000 consumers in 26 countries:
Australia, Brazil, Canada, China, Czech Republic, France, Germany,
Hungary, India, Ireland, Italy, Japan, Mexico, Netherlands, Poland,
Romania, Saudi Arabia, Singapore, Slovakia, South Africa, Spain,
Sweden, Turkey, United Arab Emirates, the United Kingdom and the
United States. The sample in each country was representative of the
online population. Ages of respondents ranged from 14-to-55 and
over. The survey, and related data modelling, quantify consumer
perceptions of digital devices, content and services, purchasing
patterns, preference and trust in service providers, and the future
of their connected lifestyles.
About Accenture
Accenture is a leading global professional services company,
providing a broad range of services and solutions in strategy,
consulting, digital, technology and operations. Combining unmatched
experience and specialized skills across more than 40 industries
and all business functions – underpinned by the world’s largest
delivery network – Accenture works at the intersection of business
and technology to help clients improve their performance and create
sustainable value for their stakeholders. With more than 394,000
people serving clients in more than 120 countries, Accenture drives
innovation to improve the way the world works and lives. Visit us
at www.accenture.com.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170224005040/en/
AccentureMolly McDonagh, + 44 7825 023
622molly.mcdonagh@accenture.com
Accenture (NYSE:ACN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Accenture (NYSE:ACN)
Historical Stock Chart
From Apr 2023 to Apr 2024