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The sector has experienced strong commoditization, failing to capture opportunities generated beyond network and infrastructure management
The Telco industry was one of the pioneers in experiencing digital transformation, being itself a key player in the development of the infrastructures necessary to unleash the digital revolution.
However, over the last decade, the sector has experienced strong commoditization, failing to capture opportunities generated beyond network and infrastructure management. The value has shifted from the connection to the services and content to which it gives access.
In response, operators have chosen to offer added value to their users, opening avenues for diversification business. Understanding the dynamics of new business models (fintech, insurtech, VOD, etc.) is key to identifying and capturing new lines of income.
An additional challenge is the strong competitive pressure that has overheated the recruitment market and fueled price wars, creating a whole low-cost segment in which the added value of the brand tends to disappear. In this context, optimizing user acquisition, streamlining internal and customer service processes, loyalty and leverage cross-sell opportunities is key to generating sustainable profit pools.
The third challenge facing the sector is technological: having been a pioneer in the development of its own platforms and systems, it faces a legacy of monolithic tools that have been overcome by new technologies, more efficient, integrable and with greater capacity to scale.
Opportunities
There are short and long-term opportunities and at The Cocktail we have the necessary skills to take advantage of them, together. The knowledge of the user, the ability to redesign the business strategy, and our digital and technological DNA. They are the perfect cocktail to face the challenges of the sector together.
- Diversification: using the current client portfolio to grow in new business lines (more or less close to the 'natural' territory). We have helped other clients generate this additional income. We have the experience and access to players in other industries to promote strategic agreements (fintech, insurtech, etc.)
- Efficiency of the life cycle of clients based on technology and self-management: from a more efficient acquisition thanks to predictive models and propensity to purchase, up to the improvement of self-management apps or the recovery process.
- Technology: we understand the advantages of new platforms, and we have experience in integrations with legacy systems. We can accelerate the implementation of new tools and facilitate the management of the change that their adoption entails.