Most enterprises are implementing or planning digital services, and a full 45% of that group expect to deploy services via their websites or mobile apps.
In fact, a full 95% of the 292 decision-making enterprise executives surveyed by Oracle Communications in September for its October 2018 report, "Digital Services: Disrupt or Be Disrupted" are busy with digital services. Respondents represented 18 industries across 14 countries: About half of those polled were involved in telecom, while the remainder were executives at computer hardware and software vendors, education, healthcare and manufacturing, according to Oracle.
Even though 5G has not yet officially arrived, 48% of service providers and 50% of executives at other industry enterprises believe 5G-enabled smart city-related traffic apps aimed at parking, tolls and lights, etc., will lead the 5G-enabled general digital services. Connected cars were another 5G beneficiary, as signaled by 43% of operators and 46% of general businesses, and consumer robotics -- for remote control tasks and property surveillance -- was picked by 43% of service providers and 44% of other industry respondents.
“The digital opportunity is clearly recognized by companies across all industries,” said Doug Suriano, senior vice president and general manager at Oracle Communications, in a statement. “While telecom companies have significant experience providing digital services, they face the challenge of delivering differentiated new revenue streams in an agile manner. Other industries, who in many cases are beginning to offer digital subscriptions and services enabled by physical products, also find they need more sophisticated and modern digital services monetization systems to capitalize on their digital opportunity.”
The latter's existing need for digital services adds up to a big opportunity for proactive service providers, said John Lenns, vice president, product management at Oracle, in an interview with Broadband World News. Today, 45% want to deploy digital customer engagement tools on their websites and mobile apps, the study found.
Where opportunity lies
Having heavily invested in infrastructure and delivering speeds of up to 1Gbit/s to many subscribers, service providers now want new ways to recoup and build upon their investment, accelerate deployment and defeat existing and new competitors entering the digital fray, Lenns said. After all, it takes more than technology to win over large enterprise customers and their large, perhaps multi-year contracts. Operators know this. They're banking on it.
"There are going to be winners and losers within this space. Those operators who leverage -- it's not just about the technology -- [it's leveraging] the technology in a profitable way who will be the winners," said Lenns. "You can divide up customers into the early adopters -- not just in terms of technology but in the new wave of services and how they deploy to the world -- and then there'll be the fast followers and then the people who lag behind them. Our customers see it coming, and there are customers that are embracing it and going forward, even in advance of 5G. They have to offer these new services profitably. There are ways to do that. That's what they want. [The survey] verifies what we've been thinking."
Pricing, for example, and the ways in which providers present and package services will be critical to success, he said. Whereas "simple subscription pricing" is the norm today, operators' menus will feature bundling of products or digital services; usage or consumption-based pricing and outcome or performance-based charging, Lenns noted.
Speed beats perfection in the finished product or service, too.
Taking a lesson from agile development, 91% of respondents prioritize speed over full integration within their IT environment -- a far cry from only a few years ago, when complete integration was the goal. Also, 69% would choose a lightweight, quickly deployable solution versus a fully featured solution that takes longer to deploy. And one-half of those polled say launching new, digitally enabled services should take only days -- nothing more, according to Oracle's survey.
In a flurry of activity throughout the week, Donald (DJ) LaVoy, Deputy Under Secretary for Rural Development at the US Department of Agriculture, and his team spent about $145.8 million in the non-urban or suburban areas of seven states.
Calix reported revenue of $120.19 million – up 4% – in Q4 2019, putting a bounce in the step of company president and CEO Carl Russo and a shine to Calix's ongoing transition from hardware vendor to a provider of platforms enabled by cloud, APIs and subscriber experience.
Looking to curtail e-waste and improve the bottom line, BT will require customers to return routers and set-top boxes, although subscribers will not have to pay a fee when they receive regular broadband equipment.
Deploying DOCSIS 3.1 across its entire footprint gave Rogers Communications the ability to offer speeds of up to 1 Gbit/s,
contributing to a broadband segement that generated about 60% of the Canadian operator's $3.05 billion (US) in Q4 cable earnings.
Over the next two years, approximately 60% of service providers (both large and small) will adopt virtualization on a wide scale across their networks, according to the latest survey report from Ovum. Why are providers making these moves? Is there an easy way to start?
Learn how and why service providers are using virtualization to transform their networks. This webinar will look at how providers are leveraging virtualization to create more flexible and agile networks while also providing a better customer experience. Expert speakers from netElastic and Heavy Reading will address the industry drivers for network virtualization, the benefits that can be realized, the challenges to face and the results of virtualization being achieved by providers today.
Key topics will include:
Current network infrastructure and the move to virtualization
Benefits and challenges of network virtualization
How providers can get started
Service provider success stories: the decision to virtualize, the solution, and results