There is a lot of buzz around marketplaces right now. Emboldened by emerging IoT and 5G services, many of the world’s largest carriers have significant interest in becoming a telco marketplace.
Permitting their B2B customers to buy third-party services from an ecosystem of partners, in one seamless purchasing experience, and encouraging the incubation of a variety of new services and revenue models, marketplaces are an exciting convergence of products and services.
With the freedom to bundle innovatively, telcos are able to unlock unexplored values for themselves and customers, and move from being providers of telecoms and ICT services to creators of digital innovation
Here are 4 stats you need to know about marketplaces.
1. 5G will enable a global output of $13.2 trillion by 2035
There is an urgent need to meet evolving consumer expectations, and with emerging trends like 5G, telcos have a greater obligation to become more collaborative and redesign their operating models in order to capitalize on its opportunities.
With the rapid adoption of cloud services and digital transformation, consumers have benefited from more reliable data speed, improved coverage and lower latency, whilst providers have only benefited marginally. In order to meet needs of various sectors, and unlock revenue streams from the use of 5G, operators and providers need to diversify their services.
5G is set to unlock new value in many industries and in order for telcos to capitalize on this, becoming a marketplace seems to be a fruitful pathway to go. Transforming the way CSPs and their partners sell their products, providers will be able to dominate new markets with agility, speed and innovation, matching sellers and B2B expectations.
2. The IoT-enabled services market forecast to exceed US$8 trillion within 10 years
The need for connectivity drives the reality that no CSP can deliver their customer needs without the contributions of partners. Additionally, current processes for providing connectivity and bundling different products will not satisfy customer needs in this hyper-connected world.
Emboldened by increasing proliferation of SIM card-enabled devices, IoT offers opportunities for telcos to play an active role in a diverse ecosystem of technology suppliers and experts, that extends beyond connectivity, and into products and services.
Many of the world’s largest carriers have significant interest in becoming a telco marketplace, permitting their B2B customers to buy third-party services from an ecosystem of partners, in one seamless purchasing experience.
3. 78% of CSPs cite keeping control of the customer as the top driver for developing a marketplace
Operating as a digital ecosystem that connects consumers with producers of goods and services, marketplaces provide the opportunity to strengthen and monetize relationships, and convert them into mutually beneficial strategic alliances.
With the high-level understanding telcos have of their customers, combined with their large customer base, there’s no reason why telcos who have built strong relationships with their customers should be left behind.
Telcos are now in a position where they can go beyond connectivity and partners, and get access to an even larger customer base.
Developing a marketplace platform, telcos are able to leverage their existing customer base to offer connectivity solutions, bundled products and services and much more. Through creating a digital ecosystem which meets the needs of customers, CSPs are able to control their relationships with consumers.
4. 40% of the world's top 30 brands are now platform businesses
With the shift towards digital experiences, this technological revolution signals a shift for communications service providers towards an open technological landscape.
Offering flexibility in not only bundling products, telco marketplaces allow companies that operate within a marketplace to assess which partners they want to work with, to grow and protect their business.
The strategic value of this ecosystem harnesses the service offerings from a diverse supplier base to offer new service bundles to new market segments - acting as a catalyst for economic growth.