Telecoms service providers worldwide are upping their game to capture market share, grow revenue, and increase profitability by growing business in the small and medium-sized business (SMB) market, according to research conducted by GlobalData, a leading data and analytics company.
Robert Pritchard, Principal Analyst, Enterprise Technology and Services at GlobalData, comments: “Given the historical fact that small businesses are the growth engine of economies worldwide, combined with the trend towards re-shoring and safe-shoring business activities that are undermining many multinationals’ global ambitions, enterprise telecoms service providers are turning their attention to national and regional markets.”
GlobalData’s quarterly SMB Watch, which highlights the latest news and trends in the SMB market, found that service providers are increasingly focused on selling business outcomes rather than technology. One key area of interest is cybersecurity, with Artificial Intelligence (AI)/ Generative AI (GenAI) inevitably becoming a topic of interest alongside sustainability as enterprises of all sizes look to reduce their greenhouse gases to counter the global climate crisis.
Pritchard continues: “The shift towards telcos’ more business results-focused go-to-market strategy is being supported by a growing sophistication in providing customers with insight and assistance on issues that smaller businesses do not have the in-house skills to address. This can range from establishing credibility through customer use cases and primary research to interactive technology brainstorming sessions to discover opportunities.”
Pritchard concludes: “Of course, in order to deliver value-added, higher-margin, and ‘sticky’ propositions, service providers still have to invest in their 5G and fiber infrastructure, where, because of high capital expenditure, market consolidation continues mostly on an in-country basis to maximize returns. The focus might have moved away from networks, but they remain at the heart of everything.”
