Artificial Intelligence or AI, Cyber Security and Resilience, Cloud Adaptation, and 5G are the top four telecom trends of 2023 that are pushing organizations to be more innovative in their digital transformation efforts.
When done right, these investments could not only cement your business’ footprint in the digital world but also immortalize your future in the fast-paced world of telecommunications.
Telecommunications companies typically invest in network infrastructure, spectrum licenses, research and development, customer acquisition, and marketing. The Return on Investment or ROI for these can vary significantly based on the company's ability to attract and retain customers, provide reliable services, and effectively manage costs. For example, Apple's ROI can vary over time and across different segments of its business, including iPhones, Macs, iPads, Apple store services, and device accessories. The company's performance is influenced by factors such as product sales, pricing strategies, competition, market demand, and global economic conditions that range from Stock Market influences to a simple celebrity tweet..
In what ways can Return on Investment (ROI) support telecommunication companies in realizing their expansion plans?
Several factors fuel expansion plans for telecommunications companies. These factors are influenced by market dynamics, technological advancements, customer demands, and strategic goals of the company–all of which require deep financing. And while Telco companies have the operating budget to fulfill frontend products and services, ROIs are added gains that are dedicated to realizing future plans. Simply put, whoever lives in the future leads the pack.
Here are Three (3) ROI-accelerating business moves that will supercharge your expansion.
1. Never Neglect Network Infrastructure
The telecommunications industry heavily relies on network infrastructure, including wired and wireless networks, fiber optic cables, towers, and equipment. Investing in robust and efficient infrastructure is crucial for delivering reliable and high-quality telecommunications services. The ROI is influenced by the cost of infrastructure deployment, maintenance, and upgrades, as well as the ability to attract and retain customers based on network performance.
For example in 2022, Meta Platforms and Bharti Airtel announced their plans to jointly invest in network infrastructure to boost high-speed data and digital services in India. This collaboration carved out a new age in digital solutions for the country enabling global connectivity infrastructures and communications platforms as a service, which gave way to 4G and 5G test trials in the country.
“Investment in infrastructure is a long-term requirement for growth and a long-term factor that will make growth sustainable.”
– Chanda Kochhar, former managing director, and chief executive officer of ICICI Bank, India.
Companies need to invest in upgrading their networks and introducing new services all the time to stay ahead of the competition. Upgrades might include deploying faster network technologies (such as 5G), expanding coverage areas, or investing in new software and hardware solutions. Innovation and timely technology investments can lead to increased market share, revenue growth, and enhanced customer satisfaction, ultimately driving ROI and making your future plans possible one innovation at a time.
2. Magnify the Market
Investing in market expansion strategies can help you reach new customer segments or enter new geographic markets. This may involve opening new branches, offices, or stores in target regions, or expanding your online presence through e-commerce platforms.
Telecommunications providers often diversify their service offerings beyond the traditional voice and data services. They may expand into areas such as cloud services, the Internet of Things (IoT), managed services, video streaming, and other value-added services. Diversification can generate additional revenue streams and attract new customer segments, positively impacting ROI.
“Diversification may preserve wealth, but concentration builds wealth.”
– Warren Buffet, American business magnate, investor, and philanthropist.
Strategic acquisitions or partnerships can fuel business expansion by providing access to new markets, technologies, or customer bases. This investment decision allows you to leverage the strengths and resources of other companies to accelerate your own growth and diversify your offerings. A recent McKinsey survey of 50 senior executives from telco companies around the world showed that 77 percent had embarked on more than five business-building initiatives over the past ten years. Some of these businesses are newer than others but nevertheless are targeted at significant market expansions that boosted sales and revenue generation.
On top of market expansion, acquiring and retaining customers is a significant factor in the ROI for telecommunications companies. Investments in marketing, advertising, and customer acquisition campaigns aim to attract new subscribers. Simultaneously, efforts to provide excellent customer service, competitive pricing, and innovative service offerings contribute to customer retention. Higher customer acquisition and retention rates positively impact the ROI by increasing revenue and reducing customer churn.
On one hand, increasing investment in marketing and advertising efforts can help raise brand awareness, attract new customers, and expand market share. This may involve implementing targeted marketing campaigns, utilizing digital marketing channels, or sponsoring events to reach a wider audience. If your business has the potential for global reach, investing in international expansion can open up new markets and revenue streams. This may involve establishing international subsidiaries, distribution networks, or strategic partnerships with local companies–the more places you venture, the higher the reward will be.
3. Sticking to Sustainability Initiatives
Streamlining operations, optimizing workflows, and reducing costs are critical factors for ROI in the telecommunications industry. Efficiency improvements can come from automating processes, implementing intelligent network management systems, optimizing workforce utilization, or adopting advanced analytics for predictive maintenance and resource allocation. These measures help reduce operating expenses and improve overall profitability.
Customer Relationship Management (CRM) enhances your capabilities to contribute to business expansion by improving customer satisfaction, retention, and acquisition. Investing in CRM systems and processes allows you to better understand customer needs, personalize interactions, and deliver exceptional service.
“Corporations invest in sophisticated CRM or Customer Relationship Management programs to effectively oversee their relationship with their customers at every point during the buying process”
– Marc Ostrofsky, American entrepreneur, venture capitalist, New York Times Best Selling Author, and public speaker.
Investing in sustainability initiatives not only benefits the environment but can also enhance brand reputation and attract environmentally conscious customers. Implementing renewable energy solutions, eco-friendly practices, or sustainable supply chain management can contribute to long-term business expansion.
Another big consideration is the regulatory landscape that significantly affects telecommunications companies' operations and ROI. Compliance with regulations, licensing requirements, spectrum management, and meeting quality standards impact costs and potential revenue. Changes in regulations or policies can create opportunities or challenges for telecommunications companies, influencing their ROI.
Sticking to initiatives that are compliant to existing rules will benefit your investments. Regulations may impose service obligations on telecommunications providers, requiring them to provide universal access, maintain service quality standards, or serve underserved areas. Fulfilling these obligations can entail additional costs but can also create opportunities for revenue generation. Compliance with service obligations may impact ROI, depending on the financial viability and operational efficiency of meeting these requirements.
On the positive side, governments sometimes implement policies or offer incentives to encourage investment in certain sectors, including telecommunications. These incentives could include tax breaks, grants, subsidies, or favorable financing conditions. Accessing such incentives can help reduce initial investment costs, enhance ROI prospects, and promote industry growth.
Return for your investment is the ultimate measure of its viability.
You wouldn’t want to go into an endeavor that will not yield benefits you can use to drive your present and future plans.
Similarly, we operate in the same mindset here at Zinier.
That is why our integrations for CRMs will not only streamline your investment potential but also drive up your ROI. Whether it's Salesforce, HubSpot, or Sage, CRM software replaces a patchwork of spreadsheets, databases, and apps to help your business better nurture relationships with leads and customers. Our integration platform creates a harmonious transition and execution of your old ways to new and better management of your customer data. Integrating with the tools you use every day allows for faster decision-making on investment and potential market expansions, business opportunities to drive revenue, and eliminating delays and redundancies.
The Zinier product line has placed ROI as a core thought to support Telco and Field Services companies’ current and future expansion plans. Our Productivity Suite has allowed businesses to effectively manage their current assets and equipment in the field with our Platform-first approach that has accelerated Time-To-Value in customer and product delivery.
Our Integrations on one hand is a marketplace that connects everything–allowing for efficient task delivery, problem-solving, and information generation for business decisions to happen quickly. Having the right product line operating for your business is critical in realizing ROI in all of your investments. You cannot spend your time putting out fires and troubleshooting trivial tasks just because of ineffective operations, making your vision of the future a lot blurry with every blunder.
You have done the work, tested the waters, and are ready for the next big move. You have the right product in place and your investments are ready to take you places that will solidify your company’s footing in the industry.
So what’s next?
ROI acceleration simply means being efficient at what you do now so you can get to your desired future faster, safer, and a lot easier–we happen to know the secret ways to do just that, up for a quick talk?