Reinventing Telecoms: How MNOs Can Transform Revenue Declines into Digital & Non Telecom Services Success - Ishtiaq Ahmed

This article is inspired by four days of visits, interactions, and key lessons learned at GITEX 2024 in Dubai, with a special focus on the telecom sector.

As traditional revenues from voice, SMS, and basic data continue to fall, mobile network operators (MNOs) must urgently adapt. Recently concluded GITEX 2024 in UAE showcased how leaders like e& (formerly Etisalat) and DU are diversifying to ensure sustained growth.

Here are some insights on areas of decline and strategic redirection for telecom operators . By addressing these areas, telecom operators can effectively redirect their strategies and enhance future service offerings:

Decline in Core Revenue

Voice and SMS revenues are dropping sharply, with global voice revenue projected to fall from $230 billion in 2023 to $182 billion by 2028. The rise of free OTT services like WhatsApp and Zoom accelerates this decline, especially in high-tariff regions.

Where to move and what are directions for telecom sectors:

1. AI and Generative AI (GenAI)

AI and GenAI present transformative opportunities for MNOs by automating customer service, personalizing user experiences, and optimizing network performance. GenAI can enhance marketing, product development, and predictive maintenance, strengthening telecoms' digital strategies. Adopting AI can unlock significant revenue potential in the telecom sector.

2. Fintech: The MFS Boom

Inspired by M-Pesa, operators like Etisalat (e& money), Orange, and Vodafone are leveraging mobile networks for financial services, boosting revenue and customer loyalty.

MFS is transforming financial inclusion and opening new service opportunities like micro-lending and insurance.

Key 2023 stats:

• 1.75B registered accounts (+12%)
• $1.40T in transactions (+14%)
• 435M active 30-day accounts (+9%)
• 8.3M agents (+14%)
• $74B in merchant payments (+14%)
• $29B in remittances (+33%)

3. Cross-Industry Partnerships

Operators are forming strategic alliances, like Etisalat’s EV charging and logistics integration with Careem. Such partnerships, presented at GITEX 2024, illustrate how MNOs can offer automation, smart city infrastructure, and transport solutions, broadening their revenue potential.

4. 5G, IoT, and Data Monetization

5G technology and the IoT revolution unlock vast new markets, from healthcare to industrial automation. MNOs can capitalize on data monetization through analytics and targeted advertising, provided they navigate privacy regulations.

Conclusion: Adapting for Longevity

1. Invest in Fintech: Integrate innovative financial services to create new revenue streams.
2. Leverage AI & Gen AI: Utilize AI for analytics and customer service enhancements.
3. Expand 5G & IoT: Prioritize 5G deployment and develop IoT solutions for various applications.
4. Monetize Data: Implement strategies for data-driven products while ensuring privacy compliance.
5. Forge Partnerships: Collaborate with tech leaders to co-create competitive digital services.

By embracing these strategies, telecoms can secure long-term growth in the evolving digital economy.

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Ishtiaq Ahmed is a senior telecom, digital, and fintech strategist. Connect for consultancy and advisory services to drive mutual business success.