CRM Telcom Necessary for Operators
CRM Telecom is the very essence of today’s Telecommunications industry. Today, the challenge for telecoms is to balance the ever-increasing need for sophisticated IT with the need to keep IT costs reasonable. In other words: making IT a driver of value.
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Providing telecom services requires a massive amount of Information Technology (IT) support. CRM Telecom costs represent nearly 5 percent of telecom revenues, compared with industries such as manufacturing, utilities and food, which spend just over 2 percent of their revenue on IT. In telecom, complex and constantly changing tariff structures require sophisticated IT systems for mediation, rating and billing. Real-time processes such as billing of prepaid accounts require a fully IT-automated process chain. Moreover, CRM has become an integral part of telecom products and services, and will continue to be in the future.
At the same time, many countries are experiencing market saturation for voice telecommunication services. The result: Competitive pricing and stagnating demand have caused mobile operators’ average revenue per user (ARPU) to spiral downward.Increasing data revenues from mobile broadband have lessened the slide, but not stopped it overall. Deregulation and the unbundling of services, new technologies (such as voice over Internet protocol, or VoIP) and competition from cable network and mobile operators have sent fixed-line operators’ revenues into a nosedive, too.
Our calculations reveal that overall profits in the European mobile industry could turn negative as early as 2011. Clearly, telecom companies must further intensify their efforts to reduce costs and improve efficiency in order to prepare for the rough times ahead.
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