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The End of an Era: Telco MNO’s out!

no-simThe direct impact of chatbots, IM, or any messaging service on a telecom operator (MNO) starts up with revenue dip for voice services; however, a thorough look at the issue shows it is more than that! MNO’s are losing the war to own the subscriber. With such applications that are taking over the mobile ecosystem, MNO’s are becoming a mere mode of connectivity. Losing a huge percentage of their voice revenues to such apps, they are in battle for the ownership of the subscriber, with all his info & digital commerce activities.

In 2006, handset manufacturers tried their luck with proposing a SIM-less phone. The resistance was so immense by the MNO’s and SIM vendors that the battle was lost the minute it was proposed. Today, the whole picture is different. In the background of the portrait, the MNO’s stand helpless since their role is being minimized to data connectivity operator. With big players like Facebook, Apple, & Google, who currently own the subscribers & their data (whether MNO’s like it or not), it is a matter of time before a new evolution comes up. More IM & chatbots applications are coming up: imo, WeChat, Line, etc.

The rise of a new data technology that requires no SIM card would end the MNO’s role in terms of traditional telecom ecosystem that we know. A new era would rise making way to such companies to take out such MNO’s. How would the ecosystem change? Let us wait the upcoming techs & trends.

The New Role Of Telecom Operators

In the past years, the revenue of traditional voice is decreasing drastically while data is picking up; However, the compensation between the two is still far from closing. MNO’s are searching for a compensation for the lost revenue.

Several new streams of revenue are being looked upon or rolled out: M2M, IoT, the old-renewed cloud services, roaming services, among others being developed. The new streams of revenue from these services did not yet compensate for the voice revenues lost.

Flat rates, lower IDD, lower interconnection, OTT, VoLTE and several other apps, services, and market dynamics are pushing the revenue down. Subscribers are always looking for new ways of decreasing their bills. Same applies for companies (enterprise services).

At the other end of the equation, MNO’s are pushing enterprise services and outsourcing their infrastructure (consolidating also) in order to lower cost & push revenues up. The enterprise services are proving to be the new boom for the telcos especially with the new standards & services of cloud, M2M, and IoT. Partnering with ICT companies (service, platform, & software providers) is the new way of doing business among the world, especially emerging markets.

Emerging markets, especially Africa, are the testing grounds for profitability of such streams due to the cost sensitivity & lack of infrastructure. Keeping an eye on services & cases emerging in these markets are worth the effort.

You have to know your customer well, else you are out of business

0fc1eb0A lot of companies have a golden business rule: keep an eye on your competitor! Such a rule is a good one, although I would not get too much obsessed with it; however, most of the companies forget about their customers.

Why is it the most important need to know your customer? I always agree with the fact that your staff are your valuable asset. This is where your ideas, executions, and drivers come from. Still, your customers are your cash generators. If you don’t know them, or your staff do not drive you to know them, then you are walking blind.

I am not going into the techniques of how to keep an eye on your customers or the ways & mechanisms of knowing your customers (I bet most of you know that). We are focusing here about the concept by itself.

Trends, habits, characteristics, demographics, ethnicity, origin, feasts & holidays, etc are all aspects of a customer that will affect your business. Who they are & what they like are all related to how you should be conducting your business. Whether you are into mass market, segmented market, B2B, B2C, or whatever segmentations you have, look into how your customers behave, their background, social status, and daily habits to come out with innovative products. Innovation is not inventing new technology. It is coming up with what your customers need, want, or wish for.

Keep your eyes open and take care of your customers. They will take care of your business.

Welcome to Samer Mehaidly’s Blog!

Hello and welcome to my blog!

As a seasoned strategist, marketer, and business developer with over 12 years experience in telecom MNO’s with a strong IT & Technical background I aim to use this blog to project my thoughts, ideas and opinion within my particular sector of expertise.

I encourage all professional comments and interactions in response to my articles.

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