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Communication service providers (CSPs) are keen to crack the B2B market beyond selling connectivity. The best way to understand how CSPs are transforming their B2B customer experience is to look at what’s motivating them to transform in the first place. Deutsche Telekom merges companies. One product at a time.
Yet no killer B2B application has emerged to give CSPs immediate and sustained business growth. As such, many of the technologies that CSPs are now deploying for 5G era operations are part of the effort to broaden reach or are being packaged up and sold as a service to boost the IT-centric capabilities of B2B offerings.
So as CSPs speculatively launch new B2B service and product types, they are accessing those new models for profitability before scaling up their operational capabilities. When we look at connectivity solution evolution on the B2B side, service models like SD-WAN have genuine revenues flowing through them and are growth markets.
annually over the last three years and that B2B revenues were flat before the Covid-19 pandemic started in 2020. The pandemic hit many CSPs’ core B2B communications businesses as the global office workforce started working from home using existing consumer broadband connections and some businesses failed.
This addresses three key issues for communications service providers (CSPs): Creating new revenue streams and return on 5G investment; improving B2B clients’ experience; and tackling high operational costs. The Catalyst, 5G slicing as a service for B2B2X over convergent cloud central offices. alt_text.
Early examples focus on SD-WAN. Virtually all Tier 1 CSPs with a sizeable enterprise services business (or serious aspirations to build one) have NaaS-supported B2B offerings; they have to in order to compete. TELUS eyes nearly $1 billion in new revenue.
On average, the percentage of total revenues that B2B services (connectivity and beyond) represent, reached 30% in 2020 for many major operators. A good example of this is in the B2B space. CSPs are having success with software-defined wide area networking (SD-WAN) for enterprise service. B2B private networks.
Vodafone Business and Oracle Communications share the belief that co-creation is key to success in delivering B2B and B2B2X value in the 5G era. Future revenue growth for service providers will come primarily from B2B and B2B2X business models as we continue to move beyond connectivity. B2B & B2B2X opportunities with 5G.
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