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Operators must refocus their connectivity propositions around simplicity and peace of mind. Consumers will increasingly value these qualities as they grow more dependent on digital services and information.
Refocusing on simplicity and peace of mind
For consumers, buying the connectivity they need can be a complex exercise. It may involve dealing with multiple service providers (a mobile operator, a fixed-line operator and Wi-Fi hotspot providers) and evaluating the merits of volume-based tariff plans, handset subsidies and different technologies. But as technical barriers and performance differences between mobile and fixed networks erode, telcos can sell a single connectivity proposition that masks the underlying complexity for customers.
Rather than marketing 5G and fibre, throughput speeds and data allowances, operators could refocus their propositions on reliability and availability, qualities that consumers increasingly value as they grow dependent on digital services and information. For example, telcos could package mobile, fixed and satellite connectivity into a single ‘all-you-can-eat’ proposition that a consumer or household can then use with a set of specified devices. This kind of ‘connectivity-made-simple’ proposition should resonate with many consumers who, for example, do not care about the differences between 5G and 4G, or fibre and fixed wireless access.
Another approach is to embed connectivity into devices and services so consumers do not need to buy it separately. Advocating for connectivity to be as flexible and easy to consume as cloud services, the TM Forum is promoting a ‘connectivity-as-a-service’ concept that embeds ubiquitous connectivity into every product, service and application. The trade body’s vision is that, by 2030, the complexity will be completely invisible to consumers, with connectivity being scaled and optimised to meet the requirements of the specific service they use.
That timetable looks ambitious, particularly as connectivity-as-a-service is a nebulous concept that means different things to different people.
In this report, STL Partners explores three different ways to simplify connectivity for consumers. In each case, the goal is to offer convenience and peace of mind, factors that could let telcos charge a modest premium over the cost of buying the different elements separately from the cheapest supplier in each case, were customers to do so.
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Recommendations for telcos in developed and developing markets
While these trends apply globally, developed countries and emerging markets still differ, primarily because the revenues generated in the latter make it difficult to justify the widespread roll-out of fibre and 5G networks. With that in mind, the conclusions section of this report makes recommendations for telcos in developed and developing markets.
Table of contents
- Executive summary
- Introduction
- Convergence 2.0 – unlimited connectivity
- AT&T offers unlimited connectivity across multiple devices
- How converged offerings could evolve from here
- Stay-connected propositions
- Six demanding scenarios
- Deep indoors/below ground
- Crowded locations
- Communities without fixed broadband
- During transit
- Remote locations
- In the event of a network outage
- Combine devices and connectivity
- Conclusions
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