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ONLY WITH MY PARTNER
5.1 . ESCAPING THE COMMODITY TRAP
In the long term , however , keeping up with the latest technology and expanding one ’ s portfolio incrementally will not suffice to successfully meet the challenge that arises from the commoditization of voice and data transmission . What telcos must do instead is to realign themselves in order to develop new sources of revenue .
This is because existing business models based on usage or subscription fees for consumers are facing mounting pressure , unless they offer the customer pronounced added value . Retail customers are showing greater willingness to pay for value-added services , meaning content and services for entertainment , information and transactions . 6 ) Unlike pure voice and data transmission , such services can also achieve pull effects and improve customer loyalty .
But a fundamental shift in the telcos ’ outlook is much more important than this expansion of their existing lines of business .
Instead of focusing exclusively on consumers , as they have done in the past , telcos are opening up new lines of business through partnerships with other companies .
New monetization models such as white-label services , revenue sharing , platform fees and advertising offer potential for the future here . In just a few years , these revenue models based on B2B partnerships will surpass the pro rata share of the B2C business models in total sales .
It is very important to have good B2B partnerships . B2B is important because you get good scale effects rather than reaching out to single customers , since the companies want to exploit their network capacities .
Top executive , COAI , India
It will not work without partnerships .
Top executive , Technology & Innovation , Deutsche Telekom , Germany
There was almost unanimous agreement among the study participants with this assessment of the shift in significance .
A B2B partnership is a business model based on an agreement involving two or more companies to share resources ( e . g . financial , capabilities ) to reach a common goal ( e . g . joint product development ).
6 ) IBB Consulting ( 2017 ). Majority of Paid OTT Users Willing To Spend More On Existing Subscriptions , Add New Ones . Retrieved from https :// ibbconsulting . com / ibb-consulting-paid-ott /