The Phenomenal growth of telecom industry was initially contributed by voice market and communication service providers (CSP) invested their investment for garnering the revenues from traditional voice marker like 2G (CDMA, GSM).
After a decade since the major boom in Telecom industry, the revenue equation is going to be changed slowly. Now there are many players in traditional voice market and margin (ARPU) is very low.
B2B telecom solutions may fetch more revenue
So CSPs are looking for different revenue streams .Major CSPs are coming with exclusive portfolio for meeting telecom needs (Voice and data ) of business . Experts say that CSPs have renewed their focus on the enterprise business for the last 6-8 months due to dwindling revenues, low profitability, and seasonality in the business and high customer churn from B2C telecom market. So telecom market may be B2B product driven to a large extent. This is called enterprise telecom service. The enterprise business provides end-to-end telecom solutions using wireless, wireline, voice and data to corporate customers.
What are enterprise telecom services?
These services differ from one provider to the other but generally include internet, MPLS -VPN, domestic and international private leased circuits, audio and video conferencing, data centre services, managed network services, EPBX solutions.
CSPs currently offer these services to industry verticals like BFSI, IT, ITeS, manufacturing and distribution, media, education, telecom, government and retail among others.
Who are the major players?
Telcos today have turned to enterprise services in a big way. While Bharti Airtel and Reliance Communications were traditionally offering these services, Vodafone India and Tata Teleservices (TTSL) have also ventured into this unit with high decibel promotions.
Currently pegged at around R23,000 crore, the Indian enterprise-connectivity market is growing at an annual rate of 12-13% and is estimated to be worth around $10 billion (approximately R47,000 crore) in the next five years.
Why the CSPs are focusing on B2B enterprise telecom solutions?
“In the present scenario, where customer acquisition is steep and the voice business has almost saturated, enterprise business will continue to grow. On an average, corporate clients spend around R3-4 crore per annum on their telecommunication needs. We fit in best, as telecom companies can leverage on their existing network to provide these services. With 3G coming in, it can also be used for providing last mile connectivity,” said Sukanto Aich, president of enterprise business at TTSL.
“The enterprise business is a strategic initiative to drive growth. India is a key market for us and Vodafone is geared to be a one-stop-shop for communications solutions,” said Naveen Chopra, director, enterprise and carrier business, Vodafone India.
“It is a stable revenue stream and provides a better margin than the traditional voice business. Here, they also have the choice to bundle services and offer discounts to engage corporate clients. Most of these companies are innovating on value-added services in this space like managing hardware remotely,” said Shree Parthasarathy, senior director, enterprise risk services, Deloitte India.
Sources : ( Financial Express and other resources )
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