Telecom trends to watch in 2023

As we edge near the end of 2022, CSG executives Ken Kennedy, James Kirby, Eric Carrasquilla, and Ian Watterson share their thoughts on trends and challenges that will face communications service providers (CSPs) in 2023.

Q. Ken – as the COO and president of revenue management and digital monetization at CSG, and as a member of the TM Forum Beyond Connectivity advisory board, you have a birds-eye view of shifts in the telecom market. What do you see as the biggest change to come in 2023?

The transition from telco to techco is easily the most exciting advancement coming in the new year. We’ll see a cultural shift as telcos think bigger and adopt an entrepreneurial mindset, positioning themselves strategically to avoid being relegated to “just” a connectivity provider. As CSPs re-imagine their identity, innovative but complex ecosystems will appear to support new collaborations and offerings.

Q. Such an interesting point, and something we’ve already seen starting to happen across the industry. Now, James, as we head into the new year, CSPs are juggling a lot of priorities. From your perspective, where do CSPs need to focus their energy first and foremost to see success?

To build on what Ken said, successful CSPs will focus their energy on B2B2X business models to make strides in the digital-centric world in 2023. Doing so will require them to connect businesses and seamlessly manage the web of multi-partner relationships that are created as a result. To reduce this complexity, we’ll see CSPs invest in advanced solutions that are rooted in digital architecture. This will help them drive new business opportunities and growth with marketplaces and partner ecosystems and improve the overall experience for consumers, enterprises, and partners. While this is no easy task, it will enable CSPs to transform into marketplace providers.

Q. Customer experience seems to be the top priority for organizations in every industry. What does this process look like for CSPs?

Yes, that’s completely right. As we head into the new year, it will be more urgent for CSPs to improve their customer journeys to better meet the ever-changing consumer demand. CSPs will be challenged to move more efficiently, maximize their full potential, and generate a winning customer, employee, and partner experience strategy.

By embracing cross-industry partnerships and bundling opportunities, CSPs can bolster their offerings and gain valuable insight into customer preferences. With more holistic data from a complex ecosystem of partners, CSPs are better poised to meet customer demands, enhance the experience, understand the context, and boost ROI. Altogether, this will help them reinvent the narrative for themselves in 2023.

Q. Great point, James. It seems like the customer journey is a big opportunity for CSPs in the new year. Eric, what do current customer experience offerings look like, and what can we expect to see from CSPs in 2023?

The overall quality of the customer experience is solely at the water and oxygen level – the bare minimum for survival. And yet, companies are stuck in this stage. The peak of the pyramid is a transformative stage that reels the customer into a sticky and engaging long-term relationship with self-learning algorithms, predictive insights, and real-time optimization.

In 2023, CSPs will advance up the pyramid by focusing on their customer experience speed and iteration, as well as the small details that create a personalized, white glove experience for their customers. By unpacking these needs at each step of the customer journey, CSPs will eliminate specific friction points they were previously unaware of. Doing so will be necessary for CSPs to avoid being drowned by the oversaturation of competitors at the base of the pyramid.

Q. Thank you, Eric. While most CSPs are focused on the rollout and monetization of 5G, some are already speaking of the next big thing: 6G. Ian, what are your thoughts on where we stand for an upcoming rollout of 6G?

The rollout of 5G excited consumers and enterprises alike because it was an astounding technological leap. The adoption of 5G in the APAC market was rolled out at a breakneck pace, and that has allowed certain markets to begin R&D trials for the next big thing in connectivity. We won’t see 6G at all in 2023, but in markets like South Korea and Japan, the first appearances of 6G are really only about two years away. To unlock 6G, it will be critical for CSPs to work together to enable the next generation of global connectivity on a larger scale.

As Ken stated, cross industry collaboration between CSPs is the key to bolstering CSP offerings. This is great to keep in mind when we think about technological advancements as we head towards 6G. Once collaboration is in place between CSPs, their collective growth will accelerate and impact future enhancements throughout the industry