ServCo

The B2C segment, where ServCos operate (whether they own their networks or not), continues to be the fundamental pillar of the telecommunications business, generating the majority of revenues for most operators. However, this market is highly mature and competitive, leading to stagnation in average revenue per user (ARPU) despite investments in technologies like 5G and fiber optics.

Telecom operators have launched numerous applications and services but have often failed to meet shareholder expectations.

Challenges

Estos son algunos de los desafíos a los que el sector de las telecomunicaciones focalizado en el cliente final (consumo, B2C) se enfrenta:

• Surviving in a mature and highly competitive market:
  Price competition is the main market driver. To remain competitive, operators must find ways to increase ARPU without losing customers and optimize service costs. Expanding service offerings through partnerships, adopting light-asset or asset-free models, and enhancing customer experience through digitalization and AI are critical strategies.
• Cost Savings
• Evolving Consumer Behavior:
  Trends such as longer mobile device replacement cycles and greater environmental awareness are putting additional pressure on the core telecom business.
• A Mature and Competitive Market:
  Market saturation and intense competition have led to commoditization, making it harder for telecom companies to ensure returns on their significant infrastructure investments.
• Constant Threat from Hyperscalers:
  Competition from internet giants remains intense, even as their growth has slowed compared to the past two decades.
• The Need for Cultural Transformation:
• Telecom companies must overcome internal cultural barriers to scale new business initiatives and adapt to a more digital-focused business model.