As the Chief Product Officer of Alianza and a veteran in the telecom industry, I’ve been a first–hand witness to a remarkable evolution that communications service providers (CSPs) have undertaken over the last few decades. As a prime example, most CSPs used to be telephone companies that operated dedicated voice networks. Today, however, those same CSPs have transformed into broadband companies that offer IP-based connectivity services in addition to voice, TV, security, and managed Wi-Fi. These diversified revenue streams have changed the game: telco revenue is higher than ever and demand for connectivity isn’t decreasing anytime soon.
New Impetuses for Telco Revenue
As a CSP, your focus is on delivering broadband services, which is your core competency and where you will be directing investments. Voice is just another application on your IP backbone.
Nowadays, however, CSPs of all sizes are actively looking for new revenue streams and ways to enhance margins while reducing operational complexity. Since the need for legacy network transformation is becoming more pressing, C-level telecom executives need to evaluate the following:
1. Status-Quo vs. Innovation
Just how compelling are your communications services?
To understand how consumers view communication services, consider the analogy of Taurus vs Tesla. On one level, the functionality is fundamentally the same: they transport people from point A to point B. On a deeper level, however, the vehicles are radically different. The Taurus has an outdated style, mediocre performance, and a polluting internal combustion engine. On the other hand, Tesla has a modern style, tremendous performance, and an incredibly efficient all-electric drivetrain. One speaks to an older generation, while the other represents the future of transportation.
You could make a similar analogy withvendors like Microsoft Teams, Zoom, RingCentral, Webex, and Alianza, who are Tesla-like, offering modern cloud communication capabilities vs. the dated services delivered off legacy platforms.
2. On-Premises Solutions vs. Modern Cloud Communications
How do you describe your own services?
CSPs that rely on platforms of the past — like BroadWorks, Metaswitch, or legacy TDM infrastructures — more closely resemble the Taurus model. They’re still able to deliver basic telecommunications capabilities, but those capabilities pale in comparison to the more modern offerings.
This presents significant challenges when it comes to competing with cloud-based solutions and generating more telco revenue.
As a service provider, should you prioritize additional investment into legacy infrastructure (like a new paint job on the Taurus) or transform your communications services to be more Tesla-like?
3. Invest in Existing Systems vs. Alternative Strategies to Compete with OTTs
What does your future look like?
The presence of formidable competitors such as Microsoft Teams, Zoom, Cisco, and RingCentral further underscores the need to offer a compelling alternative. Failing to do so increases the likelihood of customer attrition. After all, customers increasingly want more compelling and innovative communication solutions, and rival CSPs that offer these services will seem more attractive than their peers in the long run.
It is crucial to determine if managing a telephony network aligns with your core competencies, or if it would be wiser to allocate your limited resources to other areas, such as enhancing broadband connectivity services.
Furthermore, even if you choose to invest in new communication services, you must assess your capability to effectively compete against rivals like Microsoft, Zoom, and RingCentral. If your existing infrastructure truly enables you to remain competitive, that’s fantastic. But if it doesn’t, it’s time to look for a partner that can help you create and maintain a competitive edge.
Maximize Telco Revenue with the Right Partner
To remain competitive, retain existing customers, and generate new revenue streams, it is imperative for CSPs to embrace the transformation towards modern cloud communication capabilities and align with the next generation of telco. Those that do will be better positioned to address challenges and elevate service offerings to meet the growing expectations and demands of an evolving market.
In supporting this transformation, an ideal cloud communications partner would enable a robust set of communications services all under the service provider’s own brand via an integration and service orchestration platform. Broadband providers can capitalize on strategic alliances to address customer expectations and, ultimately, stay competitive in the ever-changing telecoms market.
Partner with Alianza
The future of telecommunications is here, and Alianza is leading the charge. Our constantly evolving cloud communications platform helps service providers deliver exceptional and innovative offerings under their own branding.
With Alianza, you can modernize legacy systems, simplify operations, add high-growth services, and accelerate revenue growth — all with the same partner. Learn why Alianza is the only true cloud-native, carrier-grade communications platform built specifically for service providers today.
