Three trends to watch in 2017: B2B2X, Video Service Providers & Customer Experiences

2016 was a big year for communication service providers and the pressure to introduce new digital services to consumers on-the-go reached an all-time high. In Singapore, the telecommunications scene is set to see a drastic transformation with the entry of the nation’s fourth telco, Australia’s TPG, liberalising the industry. The appointment will shake up the industry as TPG is likely to be the first digital-only operator, allowing it to enjoy greater price competitiveness and customer experience over its competitors[1].

CSG International is a multinational corporation that provides Business Support Systems software and services, primarily to the telecommunications industry. Ian Watterson, Managing Director of CSG International (Asia Pacific), shares three trends to expect in the communications services landscape in 2017, including how B2B2X business models will take shape, Internet tech giants to invest heavily in video and service providers to go beyond personalisation.

Three trends to watch in 2017: B2B2X, Video
Service Providers & Customer Experiences

Ian Watterson, Managing
Director of Asia Pacific, CSG International

Goodbye 2016, hello 2017.

The telecommunications
landscape is set to see a drastic transformation this year as the industry
continues to transform its business models and services to better serve the
digital consumer. In Singapore, we will see the entry of the nation’s fourth
telco, TPG. Companies like TPG represent the future of telecommunications in
Singapore – in line with service providers looking to transform their business
models to better serve digital consumers – while managing traditional networks
and systems. With TPG being the first digital-only operator, such service
providers will provide consumers with greater price competitiveness and
customer experience over its competitors[2],

Digital services to consumers on-the-go are
reaching an all-time high, and the entry of
TPG is certainly timely. 2017 may just be the year when we see such
“B2B2X” business models – digital services
delivered to any number of end-users, including enterprise,
retail, partner, suppliers or end consumers – contribute
significantly to a service provider’s revenues.

Here are three emerging trends
that will shape the communications services landscape in the coming year.

B2B2X business models,
enabled by the IoT, will take shape

The Internet of Things (IoT) landscape has
introduced a whole new level of connectivity to the industry – from sensors
knowing when you’re out of laundry detergent, to new advances in healthcare.
The IoT-driven customer experience will become more sophisticated, and continue
to spur innovations across all industry verticals in 2017.

IoT-powered evolution
will better position service providers to drive profits from selling network
and data services in a “B2B2X” model. Singtel, as a case in point, is embracing
5G in the context of the IoT[3]. The service
provider has started investing in sectors such as data, digitization and cyber
security. In particular, DataSpark is a new initiative to explore data and
location analytics for businesses and governments alike. On the other hand,
while IoT is relatively in its early stages in Indonesia, telecommunication
providers such as Telkom has announced plans to invest in it to develop the
potential it has to offer. The telco has signed a memorandum of understanding
(MoU) to collaborate on new business developments including IoT and smart
products, with SK Telecom of South Korea[4]. Not only that, PT
PINS Indonesia, a subsidiary of Telkom, recently unveiled plans for a new
virtual marketplace for IoT services in the country[5].

To
actually monetize the IoT requires service providers to operate on an open,
interoperable, and virtualized digital services platform. Ecosystems of
partners will be needed to deliver digital services, also making the ability to
manage and settle revenues with myriad partners a critical component of a
service provider’s infrastructure. 

Internet tech giants
will dive heavily into video – especially live content

We are now past the era of
multi-device, and are moving into an era of “multi-connected devices”, making a
service provider’s ability to move data to both businesses and consumers more
important than ever. Streaming
live, premium content enables consumers to access content and information in
real-time on their device of preference. In 2017, social networks and streaming
services will look to usher in the next generation experience that puts viewers
closer to the action – or even in the action by leveraging
virtual reality.

In Malaysia, Astro has continuously dominated
the pay-TV market with 68% TV household penetration[6]. In the next few
years, Astro will continue to face fierce competition from competitors such as
Internet-TV service iflix, Telekom Malaysia and Netflix, pressurizing it to up
its game within the content space. This January, Astro inked a five-year
agreement with the Badminton Association of Malaysia (BAM) to broadcast live
events such as Masters Grand Prix Gold, National Championships, and Malaysia
Open Super Series on Astro TV and Astro on the Go[7]. In order to win
over more millennials, the operator also partnered with PGL to organize
Malaysia’s inaugural eSports championship, Counter Strike: Global Offensive
(CS:GO) Minor Championship Asia in October 2016. Aired on OTT platforms
worldwide, the competition attracted over 1.5 million unique visitors[8].

Earlier this year,
Facebook rolled out a new feature on its social network which allows users to
stream live video. The significance of this should not be overlooked.
Technology has evolved to a point in which anyone can produce live content and
broadcast it to the world. With this new capability, Facebook has signed
contracts with over 100 media companies and celebrities to deliver content for
their live-streaming service.

It will not be long before tech giants like
Google and Amazon follow Facebook and Twitter’s lead with live content, and
cash into the business and customer experience benefits that content
partnerships present – especially when it comes to live streaming.

Going beyond
personalisation in 2017 means being everywhere consumers are

The power of personalisation will separate the
exceptional customer experience from the average in 2017. Beyond just mobile,
being everywhere consumers are at and providing them with a personalised
customer experience will be critical.

Consumers already expect service providers to
make recommendations for new content and services, but personalisation will
evolve to include recommendations based on device, content, viewing preferences,
location, demographic and behavioral data.

Consumers will also have the flexibility to
build their own, personalised, content packages – a custom mix of streamed,
live and on-demand content rather than choosing from pre-existing bundles of
channels or services.

In Singapore, this is fast becoming a reality
with the new business model adopted by Circles.Life. Partnering with M1 for its
infrastructure, the virtual telco offers its services digitally. Its mobile
application, CirclesCare provides consumers a personalised dashboard for them
to tweak their plans accordingly[9]. Additionally, the
platform monitors a customer’s usage and offers suggestions on the type of services
one requires.

Coupled with a focus on 5G services, data will
continue to be translated into new opportunities for service providers. By
taking advantage of the consumer demand for data services, providers will
continue to create more sophisticated app experiences and target consumers more
effectively, For instance, service providers can leverage on geolocation data
to offer promotions and services according to their needs.

Service providers will bring customer
experiences to where they are, whether it be at a physical kiosk, online
support page, mobile app or retail front store. By tailoring the service
experience and embracing B2B2X business models enabled by IoT, these trends
will shape the communications services landscape this year.

–
End –

[1] TODAYOnline, Australia’s TPG wins
battle for fourth telco licence in Singapore, 14 Dec 2016

[2] TODAYOnline, Australia’s TPG wins
battle for fourth telco licence in Singapore, 14 Dec 2016

[3] The
Straits Times, Corporate chiefs ride
wave of digital disruptions, 3 Jan 2017

[4] Deal Street
Asia, Indonesia
Dealbook: SK Telecom in IoT pact, Fitch upgrades Protelindo rating, 13 Mar 2016

[5] e27, Indonesia to have a new online marketplace for IoT products and
solutions, 1 Nov 2016

[6] OVUM, Malaysia
TV Update, 19 May 2016

[7] Rapid TV News, Astro inks TV rights deal with Badminton Association of Malaysia, 12 January 2017

[8] Astro, More Malaysians are watching Astro on TV and on mobile, 8 Dec 2016

[9] The
Straits Times, New virtual telco
Circles.Life offers free unlimited mobile data for WhatsApp users, 5 May 2016