How flexibility in commercial models can be key to success
Just like every industry and sector, the telecoms industry has undergone a great deal of change over the last two decades. However, as mobile network infrastructure technology has evolved, little change has been made to the commercial models behind the technology solutions that they purchase. In fact, traditional solutions have been using almost the same commercial models for decades, with some changes made to them only resulting in more complexity for service providers. But if the technologies within the telecom industry have changed so much, it begs the question: shouldn’t the commercial models radically change, too?
Quite simply: yes. Traditional commercial models are complex and often lacking in transparency. Indeed, service providers will often find themselves paying for different components, solutions, or software, without truly knowing the cost of each and in addition have to learn each technology and how to operate and manage it. And by end of the day, determining what the cost will be to deliver the service becomes a hard task for the service provider.
Add to this lengthy, multi-year contracts with a support model that is not straightforward, tied to a single or multi-vendor for longer than is beneficial and there you have a perfect recipe for vendor lock-in.
Some of the major changes that the industry has undergone — from the worldwide uptake of internet services, the arrival of hyperscale companies, to the demand for more mobile-driven services and applications, changing the consumer behaviour; all have driven the evolution of this industry. As a result, service providers have made continuous investments in their network infrastructure—from the buying of the spectrum, hardware, software, and services to overhauls in network technology and components to deliver the best network experience to their subscribers. Yet, service providers have continuously been criticized for being too slow and challenged to invest even more and upgrade their networks.
So, what’s the alternative as service providers evolve in this new age of telecommunications, driven by open standards, cloud-driven platforms, and a desire to move away from proprietary technology?
The solution lies in flexibility: just as service providers seek this attribute in their network infrastructure, so should it be found in the commercial models through which they purchase their solutions. That flexibility means doing away with CAPEX-heavy models from yesterday which demand high-investment upfront, and instead, ones where both CAPEX and OPEX investments are dependent on a service providers’ size, needs, ambitions, and requirements.
Here at ng-voice, we’re all about that flexibility when it comes to our commercial model. As we see more service providers embrace cloud-native voice services, many want to ensure this transition away from legacy voice doesn’t negatively impact their bottom line and instead sees them deliver this service in a way that is not only cost-effective but is also clear and without surprises.
That’s why we’ve created a commercial model that is open and transparent, and reflects the needs of our customers in the short and long term, making it affordable, and allowing our customers to pay for what they need. As our customers grow their subscriber base and require more components or resources, we can easily support them while offering a transparent pricing structure that doesn’t impact their growth ambitions. Indeed, here at ng-voice, we believe that embracing this ‘pay-as-you-grow’ pricing model makes the technology transition more accessible to service providers of all sizes.
The telecoms industry is changing at pace, voice solutions are changing too, so perhaps it’s time to leave outdated commercial models in the past and embrace transparency, flexibility, and scalability. More importantly, service providers should ask the question: what is the true cost of delivering my services?
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Vice President – Sales Worldwide.
With over 20 years of sales, partnerships and technical experience within the telecommunications industry. Qawa currently is leading our growth and customer success strategy as Vice President – Sales Worldwide.