Subscriber at the heart of the digital product ecosystem

24 January 2022
5 min. to read

Telecom industry is facing new challenges daily. In a matter of several years the telecom market in Russia has reached saturation. 

According to GSMA “By the end of 2020 the mobile communications penetration rate in Russia is estimated at 89% (which corresponds to 130 mln subscribers). 

Competition not only among CSPs but with related industries and digital giants is increasing. To successfully compete with the hybrid market players, the CSPs are rapidly adopting digital transformation strategies for their businesses and replenish their product portfolio with unique innovative telecom services to stand out and get competitive advantage.

This has led to digital ecosystems formation trends with cross-industry partnerships to create convergent products. The mobile operator is no longer perceived as just a telecommunication transport service provider, it’s turning into a single point for getting all kinds of digital services. The subscriber becomes the key player in the center of digital products ecosystem, and it’s the subscriber’s preferences that determine who gets the competitive advantage.

Сustomer experience is the top strategic priority 

The same trend is observed in Russia among the operators of the "Big Four". To attract and retain subscribers services are adapted to the needs of every target audience (group), which ensures a higher penetration of services, frequency of use, as well as greater involvement in communication with the brand.

For instance, Тele2 subscribers can exchange unspent traffic for other services: purchase a movie in the online cinema Wink, have a discount on a new smartphone or get a nice cup of coffee.

Back in 2019, MTS announced that it plans to implement the CLV 2.0 (Customer Lifetime Value) strategy with a focus on creating a product ecosystem based on the core telecommunications business with a seamless transition between services.

Thus, going beyond traditional telecom services and diversifying the business allows operators not only to stand out and discover new sources of profit, but also to gain a competitive advantage forming a positive customer experience.

According to KPMG research, "8 out of 10 C-level executives identify customer focus as the organization's top priority and a top digital strategy focus."
Kokshenina Elena
Business Analyst

Give your customers freedom of choice

On September, 25th, 2019 the CSP Tele2 together with the supplier of BSS solutions (Business Support Systems) Bercut, implemented the Market Tele2 platform, which is unique for the Russian telecom market. It is based on the IN@Voice billing system. Market Tele2 is the first and still the only online platform in the country where subscribers can buy and sell minutes and gigabytes.

Tele2 Market is the first Internet platform where subscribers are able to purchase the services they need by selling unspent traffic from their tariff package. The platform made it possible to convert non-monetary resources of the operator (and / or partners) into currency. The user independently decides how much traffic to use, and the remaining minutes and gigabytes do not expire, but can be sold. This has a positive effect on the subscriber loyalty index, enriches the customer experience and serves as a differentiator for the operator in the market. The proceeds from the sale of lots are used to purchase other services of the operator or its partners. Thus the subscribers are free to choose what services they spend the prepaid package on.