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Telcos struggle to deliver on the digitalisation dream

Telcos struggle to deliver on the digitalisation dream

Oct 14, 2016

Operators promise simplicity and agility, but enterprises are actually becoming less satisfied with their service provider. 

By Nick Wood, Total Telecom

Friday 14 October 2016


Telcos talk a good game when it comes to the digitalisation of the enterprise, but when it comes to actually delivering on the promise, they have been found wanting.

This is one conclusion put forward in a recent study by Ocean82. The consultancy generated a score based on an assessment of end-user perception of their telco's brand, VPN and related services capabilities, and overall level of service, which includes factors like value for money, and the day-to-day relationship with their service provider, among others.

The world's biggest global service providers were weighed, measured, and ranked by this study, and the results are not great.

Ocean82 found an overall drop in scores across the board during the six months to April. Orange Business Services held onto top spot with a score of 77%, but it was down from 83% in October 2015. Second-placed NTT Communications scored 66%, compared to a previous score of 73%, while Verizon came in third with 63%, down from 68%. BT saw the biggest fall: its Ocean82 score fell to 37% from 57%.

"The digital transformation seems to raise expectations about an improved customer experience but there is little evidence of any marked improvement in user perception," remarked Ocean82 director Janet Watkin.

"On the contrary, it seems users are becoming less satisfied overall," she said.

Part of the reason for this, Watkin suggested, is that becoming more customer-focused is a long and complex process for a telco, and the effects are being felt by their users.

"Most global service providers believe that creating a positive customer experience should be a higher priority than marketing communications when it comes to brand building, but they are finding this very hard to achieve in reality," she said.

"The sheer level of change observed among global providers is hard to manage. Entrenched attitudes are difficult to shift," she continued. "The evolution from a technical and/or product standpoint, to a customer-centric standpoint requires behavioural changes and these often lag behind the rhetoric of senior managers."

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