Without question, the rise of digital economy services has had a significant impact on the business models of service providers. Adapting to the always-on digitally enhanced lifestyles of today’s consumer is by no means easy, but service providers have to monetize their offerings more effectively, reduce customer churn and find new revenue streams.

Providing a seamless customer experience that includes traditional communications services with new digital economy services is perhaps the perfect solution. And today, many service providers – especially in developed markets – have a variety of multi-play offerings around connectivity services such as phone, broadband and TV.

With digital economy services growing ever more rapidly, multi-play bundled offerings around the digital economy are also beginning to find their niche in a digital-hungry market.

Staying relevant

Service providers look towards digital economy services in order to defend traditional revenue streams and develop new ones. Staying relevant in light of increasing competing services from over-the-top (OTT) players is also a factor; as the saying goes, if you can’t beat ’em, join ’em. Brand enhancement is a key factor for service providers offering OTT-based digital economy services; as one branding guru put it, it’s an imperative for success.

Adopting the correct strategy for success

Service providers typically adopt one of three strategies in approaching digital economy services:

  • a brand enhancement strategy focused on existing customers.
  • a regional strategy that leverages geographical network coverage to sell to both customers and non-customers.
  • a global strategy that seeks to offer coverage well beyond the service providers’ network through partnerships.

A key advantage for service providers is their existing base of customer relationships; this can be crucial, taking into consideration the digital economy’s need for new business models, partnerships and supporting technology.

So what should I do?

While service providers are pursuing these digital economy service models, they’re also investing in extending the support for existing multi-play services. A smart move, as there will almost certainly be a convergence of these services in the future. Adopting the conventional method of supporting these services through specific use-case solutions will only lead to complexities later. Investing in support for multi-play digital economy services will help reduce costs and ease complexity in the long term.

For more information on overcoming the challenges faced by the ever-developing digital economy, check out our free white paper here.

Alon is a product marketing manager at Amdocs, with over 16 years of experience in the communications IT industry. He is responsible for creating awareness, positioning and bringing to market Amdocs’ portfolio solutions. This role includes defining the business strategy and direction and encompasses new offering development, innovative technology and market insight.

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