By Kirill Rechter
January 19, 2015
Customers in emerging and developing markets will continue to benefit from competitive alternatives in the coming year and will gradually see lower prices and better service.
At the same time, due to competitive pressures service providers will be looking to improve their customer service, service delivery and billing operations.
Yes, the markets for communications services in many emerging and developing countries are still directed by a limited number of large incumbent players. However, with some exceptions, government owned monopolies no longer completely control entire markets.
These former monopolies and other large incumbents will continue to see the appearance of new communications service providers competing for their markets shares with targeted service offerings. This actually is a trend that has been going on for a number of years in most emerging and developing markets and will certainly continue for many more years to come.
Backed by readily available Internet and mobile technologies and increased network capacity, new service providers in emerging and developing markets are identifying market opportunities to provide communications services to specific customer segments and target markets.
In competitive markets, voice, messaging and data services have all become commodities. From the perspective of the consumer, there are limited differences among the service providers and buying decisions are often made based on pricing and service factors only. The markets for communications services in emerging and developing countries have yet not reached this point, although are certainly moving in this direction.
As competition expands in new markets, we are experiencing greater interest for our Modern Billing solution from both incumbents and new entrants in emerging and developing countries.
Incumbents are telling us that they want to improve the efficiency of their customer support operations and service delivery and would like to simplify their service offerings and billing activities. Most site competitive pressures as the need for these improvements. Many have openly admitted that their BSS operations are supported by overlapping legacy systems that cannot support these improvements and have become a burden to their businesses rather than a strategic advantage.
We also often hear regularly from new entrants, who wants to keep their operations efficient and focused. Many have internally developed BSS systems with limited functionality and are looking for solutions that will help their businesses grow.
Service providers in emerging and developing markets are starting to understand that BSS business processes, customer experience management and billing operations can and should be leveraged as a competitive advance and driver for business growth.
Kirill Rechter is the CEO of LogNet Systems.