Customer experience is prime motivator for telco transformation: study

customer experience
Image credit: Olivier Le Moal /

As subscriber growth hits the brakes, telcos are increasingly turning their attention to providing the best customer experience to minimize churn – and are making this the top priority of their digital transformation efforts, according to new research by IHS Markit.

Three quarters of service provider respondents say that enhancing customer experience is their top digital transformation project, followed by automation (44%) and cloudification (38%), said Stéphane Téral, executive director for mobile infrastructure and carrier economics research at IHS Markit.

“In this saturated world, subscriber growth is non-existent – and without customers, service providers have no business,” Téral said. “With nowhere to go to find new ‘human customers,’ providers need to pay serious attention to their existing customer base.”

The survey also found that enhancing customer experience leads to major investment in network operations digital transformation with OSS, BSS and network management systems (NMS) accounting for 60% of that investment.

Also, IoT, video and enterprise IP VPNs top the list of new digital services that service providers plan to launch over their transformed networks, while big data analytics, cloud, SDN and NFV are key digital transformation enablers that are already widely deployed across networks.

“Digital transformation is everywhere and already affecting our lives,” Téral said. “The telecommunications industry is at the forefront of this transformation, both as an industry witnessing large-scale change in its market environment and as a key driver of worldwide digitization. There are now as many mobile subscriptions as people living on this planet, and those consumers are getting telecom service providers’ attention.”

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