Seven Steps Telecom Operators Should Take to Overcome Business Challenges

Buana Sari
Published on Apr 25, 2024

The telecommunications industry is on the brink of substantial growth, with global spending projected to hit USD1.595 trillion by 2024, surpassing the USD1.575 trillion spent in 2019. However, as telcos step into 2024, they confront an array of evolving risks that demand immediate attention.

The proliferation of generative AI and other advanced technologies has significantly heightened the complexity of data security for telecom operators. Protecting sensitive subscriber data from cyber threats and adhering to data privacy regulations have become key priorities.

Telcos' initiatives to unlock value from their mobile infrastructure are gaining momentum and scale in 2024. The EY CEO Outlook Pulse survey underscores the ongoing emphasis on infrastructure carve-outs, with 41 per cent of telecom CEOs intending to pursue divestments, spin-offs, and IPOs. Additionally, 61% aim to forge strategic alliances to unlock value from their infrastructure. Nonetheless, the monetization of the mobile infra remains challenging for telco leaders.

The current EY Decoding the Digital Home study highlights that only one-third of households perceive telecom operators as supportive during the cost-of-living crisis. A significant majority of respondents advocate for more fixed-price guarantees from broadband providers, with almost half finding explanations of price changes perplexing. These grievances are prompting consumers to explore alternatives, leading to telcos losing control over the customer journey. The proportion of households moving to price comparison platforms or seeking recommendations from acquaintances has increased from 19 per cent in 2022 to 30 per cent in 2023.

With the aggressive presence of OTT players, telecom profit margins are dwindling, blurring the boundaries between telco and OTT services. Consequently, telcos must reassess their innovation levels and adapt their businesses to digital transformation by enhancing customer interactions and interfaces. Embracing tools like moLotus mobile video customer interaction platform becomes imperative for revenue generation, facilitating transformation, agility, and cost-savings.

As telcos witness a growing subscriber and enterprise client base, the introduction of new products, bundled solutions, and customized offerings is posing increased challenges. Efficient handling of customer support, business assistance, and sales order fulfilment necessitates the adoption of diverse automation tools.

Telcos have demonstrated remarkable resilience to external factors in recent times. A combination of mergers & acquisitions and technological interventions has contributed significantly to the broad recovery of global telcos from previous lows, although the rebound remains uneven. Telcos are revamping their strategies to navigate the volatile working environment, expanding the scope of marketing and digital transformation initiatives. They are refocusing on agility, sustainability, revenue stream diversity, and attracting new enterprise clients.

The Global Telecommunications Market Insights published by SkyQuest Technologies forecast that the telco market, valued at USD 2707.1 billion in 2021, is anticipated to reach USD 4165.49 billion by 2028, growing at a CAGR of 6.35 per cent from 2022 to 2028. Singapore-based mobile technology leader, Novosol, is disrupting the telecom industry by creating new revenue opportunities for Telcos within a quick span of three months through its groundbreaking moLotus mobile video customer interaction platform. This GSM-based technology reaches out directly to the inbox of all mobile handsets, irrespective of phone type or model, without requiring an app or data plan.

However, the pertinent question arises: are telcos adequately aligned with current and emerging challenges to achieve their business goals? Amidst the current high inflationary environment and escalating costs, telcos grapple with an array of challenges—from customers' cost-of-living pressures to evolving expectations and changing geopolitical scenarios. The threats they face are diverse and urgent, necessitating proactive strategies and swift adaptability.

Here are the top seven steps for the telcos to take to overcome the business challenges :

1. Superior Customer Communication

Telecom operators have been striving to set themselves apart from competitors and strengthen their relationships with customers. According to Deloitte's telecom industry outlook report, many customers consistently perceive little difference in performance among their service providers. Telecom operators have tended to target customers with similar product and service offerings, resulting in minimal differentiation.

In highly competitive and saturated telecom markets, leveraging analytics-driven personalization holds the key to maximizing customer lifetime value. The ability to attract, acquire, delight, and retain customers now hinges on telecoms launching campaigns that are swift, customer-centric, data-driven, hyper-personalized, and continuously evolving. Studies indicate that telcos excelling in personalization generate forty per cent more revenue than their counterparts.

Hyper-personalization, driven by tools like moLotus, is poised to be the driving force behind future growth in saturated telecom markets. By harnessing customer data assets and data analytics to craft hyper-personalized experiences through moLotus, telcos can revolutionize their approach to customer value management. Telcos have begun leveraging customer data to send hyper-personalized recommendations, offers, and messages tailored to individual customers for special occasions such as birthdays, anniversaries, festivals, and more.

Customer interaction plays a pivotal area where telcos can distinguish themselves. Recent data from an Ericsson survey showcase that an average smartphone consumer requires 4.1 days and 2.2 attempts, on average, to complete an interaction with a telco company. A mere one-day delay in completing an action leads to a thirty per cent decline in customer satisfaction. Moreover, forty-six per cent of customers believe that their telecom operator relies on outdated technology such as impersonal contact forms, bulk emails, and do-not-reply messages.

Millennials and Gen Z customers are gravitating towards telcos that engage more with customers through innovative mobile ad tech tools like moLotus. This tool offers many easy customer response options, helping clients to connect with telcos via mobile using mgram, SMS, Website Link, USSD, Calls, Clicks, and more. moLotus customer interactions transform telco-customer communication into real-time, mobile-friendly, seamless, accessible, straightforward, and engaging experiences.

Many telcos are deploying chatbots and virtual assistants to facilitate customer communication. While these tools expedite customer inquiries or issue resolutions without prolonged wait times, they necessitate substantial investments from telcos, resulting in lower ROI.

2. Business Processes Transformation

As telcos witness a surge in their subscriber base along with an array of tailored products and services, the operational landscape has become increasingly intricate. Face-to-face customer support options have been quickly eliminated since the pandemic started. Processes such as document submissions, lead generation, sales order processing, and customer service have become daunting. Furthermore, customers expect swift resolutions and are unwilling to tolerate any delays in operational processes. Telcos must exhibit greater determination than ever before.

Tackling complex processes necessitates the adoption of automation tools that can streamline operations and alleviate the financial burdens of telecom companies. Marketing automation platforms like moLotus, Marketo and Hubspot, among others, are revolutionizing the customer journey, making it more efficient, seamless, and convenient. The moLotus tool, with its advanced mobile transformation capabilities, is facilitating the automation of telecom customer processes including onboarding, reminders, thank-you communications, and more, resulting in cost reductions, revenue enhancements, and improved customer engagement.

Furthermore, moLotus mobile technology is reshaping the loyalty card segment by replacing traditional plastic-based loyalty cards with mobile alternatives. Telcos are nurturing enduring relationships with millennials by leveraging moLotus transformation features such as digital rewards, FAQs, real-time customer ratings, mobile reminders, instructional content, mobile feedback options, and more. Studies indicate that moLotus has slashed telco outbound process costs by up to thirty per cent while simultaneously boosting customer satisfaction levels.

3. Big Data Asset Monetization

Telecom operators are facing a significant challenge with the vast amount of customer data siloed within their systems. Many telcos struggle to leverage and transform this data into actionable insights. According to an IDG survey, only twenty per cent of telecom brands have successfully implemented data analytics, while seventy per cent believe that big data will play a crucial role in the future of the telecom industry. The primary reason for the lack of success in monetizing customer data among telcos is the absence of suitable analytics tools.

Big data analytics is still in its early stages within the telecommunications sector globally. However, forward-thinking telcos demonstrate that investing in data analytics tools like moLotus can yield substantial benefits, particularly in terms of customer engagement and profitability.

This innovative technology has significantly contributed to big data analytics, assisting telco partners in effectively managing and monetizing their extensive databases. Telecom brands can now engage in micro-targeting based on various parameters such as business criteria, buyer intent, demographics, and interactions, enabling them to gain deep customer insights. These insights, in turn, empower telcos to deliver customized and personalized content to their customers, ultimately enhancing customer engagement.

4. Encouraging Loyalty Among Customers

Recent research highlights the telecom industry as a battleground for retaining its existing customer base, a challenge further complicated by the entry of new telecom networks. Shifting consumer preferences have prompted telecom brands to prioritize technology adoption for fostering customer loyalty.

In response, operators are introducing innovative loyalty and rewards campaigns, leveraging mobile apps like Shopkick, Spendgo, and more. However, industry experts advocate for moLotus loyalty and rewards campaigns for optimal outcomes.

The mobile loyalty campaigns facilitated by moLotus offer a more engaging experience for customers. They feature personalized messages tailored with custom branding options such as name inclusion and personalized greetings. Additionally, these campaigns include a call-to-action (CTA) specifically designed for individual customers. Telcos are utilizing this approach to send multiple reward-based coupons directly to customers' mobile inboxes. Consequently, these loyalty and rewards initiatives have significantly enhanced customer loyalty, leading to increased conversions and engagement rates.

5. Unlocking New Revenue Opportunities

The telecom industry is facing unprecedented challenges with smartphone market saturation at an all-time high. Despite this seemingly challenging landscape, there are ample opportunities for mobile operators willing to venture into new enterprise segments, target diverse audiences, and embrace cutting-edge mobile technologies.

Recognizing mobile advertising as a lucrative revenue avenue can significantly benefit telcos in exploring fresh solutions and revenue streams. Mobile advertising stands out as the fastest-growing revenue segment for telcos, with global mobile ad spending projected to soar to nearly USD 399.6 billion by 2024 (Source: Statista). Collaborating with pioneering mobile advertising platforms like moLotus can unlock the full potential of mobile advertising revenue.

The rise in smartphone adoption has prompted major telcos to shift their focus to mobile advertising platforms such as moLotus, TubeMogul, and InMobi, which enable direct communication with customers. Among these, moLotus stands out for its robust capabilities in delivering hyper-personalized, customized, and targeted rich media ads, making it a preferred choice for telcos.

moLotus's technology delivers ads directly to customers' mobile inboxes without the need for a mobile application or data plan involvement. What sets moLotus apart is the extended shelf life of its adverts, which remain accessible in customers' mobile inboxes until manually deleted. Leveraging real-time data of telco customers, moLotus enables automated, personalized, scalable, and rich media ad campaigns throughout the customer journey.

By harnessing the unparalleled revenue potential of moLotus technology, telcos can craft innovative campaigns that yield quick responses and high conversion rates, paving the way for new revenue streams and business growth.

6. Generating Leads Effectively

Lead generation has long been a challenge for telecom businesses worldwide. In recent years, advertising platforms such as moLotus, Facebook, AdRoll, Marketo, HubSpot, and others have emerged as saviors for telecom brands. Among these platforms, moLotus is increasingly viewed as the most cost-effective method of generating and converting leads for telcos.

moLotus's lead generation campaigns have demonstrated superior effectiveness in acquiring leads. These campaigns, crafted using moLotus and similar platforms, can swiftly encourage customers to share their contact information like name, address, and phone number instantly. The non-intrusive nature of moLotus's 40-second high-quality videos not only attracts more leads for telco products and services but also facilitates their conversion into actual sales.

The lead generation capabilities of moLotus are further bolstered by a range of features such as hyper-personalization, automation, interactivity, customization, scalability, integration, and more. What's more, this process requires no app or data plan, ensuring a seamless experience for both telcos and potential leads.

7. Leveraging the Power of AI for Profitability

Using AI for profitability in telecom requires careful consideration of ethical implications. This includes issues such as transparency in AI decision-making, fairness in algorithmic outcomes, and accountability for AI-driven actions. Telecom operators need robust AI tools and frameworks in place to address these concerns.

As telecom operators scale their AI initiatives to handle larger volumes of data and more complex operations, scalability becomes a challenge. AI systems must be able to handle increased workloads without compromising performance or reliability. The telecom industry is highly competitive, with rapid technological advancements driving innovation. Telecom operators leveraging AI for profitability must stay ahead of competitors by continuously innovating their AI strategies and technologies.

In the era of AI advancement, moLotus stands out as a game-changing solution for telecom operators, introducing personalized AI avatars that revolutionize customer interactions. These AI avatars give telecom brands distinct personalities, fostering trust and influence with customers. Supported by subscriber insights and moLotus's unique big data capabilities, these avatar-based promo videos considerably boost conversions and product adoption across multiple customer demographics.

moLotus offers a range of tailored avatars to cater to different customer segments, delivering personalized recommendations and timely assistance, thereby ensuring high levels of customer satisfaction and loyalty. This personalized approach not only increases the average revenue per user (ARPU) but also strengthens efforts to retain customers.

Prominent telecom giants like AT&T, Vodafone, Orange, and China Mobile showcase the transformative potential of AI across various aspects of their operations. From optimizing network efficiency to enhancing customer support and combating fraud, these companies leverage AI to provide tailored experiences, fostering deeper engagement and loyalty among their customer base.


Telecom operators are at a pivotal juncture facing a multitude of challenges ranging from technological evolution and cost-of-living pressures to talent management and regulatory compliance. However, overcoming these challenges presents an opportunity for telcos to not only ensure business sustainability and competitiveness but also enhance customer satisfaction, drive growth, and seize new opportunities.

Embrace emerging technologies like moLotus to enhance innovation, marketing efficiency, and business resilience. Capitalize on growth opportunities in the enterprise market, forge strategic partnerships, and diversify revenue streams to unlock new avenues for business growth. Prioritize customer satisfaction by improving network quality, clarifying value propositions, and delivering personalized experiences to enhance loyalty and retention. It's decision time for telecom operators!