An industry standard for easing the transition ‘from telcos to techcos’

Commercial context

The evolution of this generation's key digital technologies, such as 5G and AI, is fundamentally improving the services CSPs can provide. These advancements allow CSPs to move beyond their traditional telecommunications roots and transform into advanced digital technology companies (‘techcos’) defined by their innovation. In doing so, CSPs aim to craft rich digital experiences for all stakeholders, a shift deemed crucial for fostering sustainable growth in an increasingly diverse and competitive market environment.

However, undergoing this transition is far from simple. CSPs around the globe are at various stages of development, meaning there is no universal rulebook for making this shift or even a clear benchmark for the level of technological adoption required. Despite these challenges, the transition is imperative in order to expand into new markets and ensure long-term competitiveness.

The solution

What the industry needs is a standard tool means to help make this transition, which is the purpose of the Transforming Techco landscape through open digital experience to achieve sustainable business growth Catalyst. Central to the Catalyst project's vision is the Open Digital Experience (ODE) platform. The ODE platform is designed to deliver superior experiences to stakeholders within and beyond the company, including customers, partners, and suppliers. Its open architecture allows for the seamless integration of new stakeholders, thereby enhancing the ability to serve targeted customers effectively. By using data-centric decision capabilities and AI support, CSPs can redefine their propositions, create new opportunities, and ultimately gain new insights into how they evaluate their operations and products.

Wider application and value

The practical applications of this transformation are exemplified by various CSPs. For instance, HKT has implemented genAI according to this framework through its cognitive contact center, which has significantly enhanced customer experience (CX). The improvements have resulted in a remarkable customer satisfaction rate of 86%, with satisfaction ratings consistently above 4 out of 5. The efficiency and productivity of contact center agents have also improved, with handling times reduced by 40%. This improvement enables agents to address customer needs more effectively and promptly. HKT’s deployment of genAI in its contact center has resulted in significant cost optimization, improving the OpEx to revenue ratio by 10.1%.

Similarly, China Mobile Liaoning has seen an increase in customer satisfaction for mobile and broadband services by approximately 4 percentage points on average, and achieved a 15% decrease in dissatisfied FMC users. The overall fixed-mobile convergence (FMC) customer base and home broadband revenue have grown significantly, illustrating the successful application of advanced technologies in enhancing service delivery and business performance.

China Unicom has experienced substantial benefits from the intelligent operation of its customer service as well. Customer service efficiency has greatly improved, leading to increased customer satisfaction rates of over 85% and user connection rates exceeding 80%. By empowering digital government and enterprise services, China Unicom has enhanced its industrial digital income and social influence, showcasing the broader value of comprehensive smart customer service offerings.

Moreover, techcos’ active participation in collaborative projects, such as the TM Forum’s ODE, underscores their commitment to accelerating technological advancements and driving meaningful industry-wide changes. The Catalyst project marks a significant step in the evolution of CSPs into techcos. As Michael Yue, VP, HKT said “The Catalyst sets a clear route (and industry standard) for telcos seeking to embrace advanced digital technologies. Companies that have done so are not only revitalizing their business operations, but also setting new benchmarks across the wider industry. Through this Catalyst’s means of approaching continuous innovation and collaboration, CSPs are well-positioned to navigate the complexities of the digital age and deliver lasting value to their stakeholders.”