Digital Transformation for CSPs – What is it all about?

Going digital’ has been a trend many businesses across industries have jumped on board with as it allows them to reach a larger audience. With everyone staying home and being online, how can businesses providing telecommunication services and in the telco industry apply and benefit from ‘going digital’? With the global pandemic pushing businesses to adapt to digital solutions, communication service providers (CSPs) need to stay a step ahead to be able to cope with the increased demand for their services. Prior to the pandemic, we experienced a paradigm shift towards a digital world. However, current events have only accelerated this paradigm as evident by the shift in spending for ‘digital’ businesses processes.

Has the COVID-19 pandemic fast-tracked customer digitalization?

Increased digitization
Source: McKinsey & Company

Unlike most businesses, CSPs and telco-focused businesses are in the center of the digital world, yet there’s always room for more due to business processes that are isolated. CSPs use the latest in technology to offer their clients the best in services, but do they do the same when interacting with their customers? We can clearly identify the absence of digital adoption by focusing on the interaction between CSPs and their customers. For instance, prior to the digital evolution, customers were able to visit a store and solve their problems face-to-face with a company representative. However, since the digital evolution, customers can now receive the same service through a website or an app.

As CSPs expand the more technology is brought in to address the specific wants and needs of the customers. For instance, online chat. The requirement for a CSP or telco-focused business maybe involve supporting online chats, however, would that specific feature be available to all agents regardless of the channel of communication used by the customer. It’s the later part that is often forgotten and is why an increased number of digital transformation programs need to be in place.

Similarly TM Forum narrows down the digital strategies of CSPs to result in the digital transformation journey to:
  1. Enhance the user experience through digital functions
  2. Drive costs down and improve operational efficiency
  3. Develop income streams outside communications and connectivity

The graphic below from TM Forum highlights the three main reasons certain CSPs have opted for digital transformation.
Digital Services at ADL

A few key trends and comparisons were also drawn out to help focus on the need for digital transformation programs for CSPs:

  • Increased use of self-service applications
  • Increased Operational expenditure (OpEx) savings
  • Bring in new business
  • Improvements in the Net Promoter Score (NPS)
CSPs will continue investing heavily towards a secure and sustainable digital transformation platform to develop and maintain themselves. Using key performance indicators (KPIs) can help assess the progress and growth of your digital strategy. If you are looking for a way to go digital, a way to improve your customer’s experience, a way to stand out, visit to explore our range of services or get in touch with one of the members of the ADL family through to kick start your journey in digital transformation.
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