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Cost, profit, service? What suffers? A look at today’s telecoms corporate suppliers

David Hamilton / 12 Feb, 2016

The established telecom network suppliers are in a quandary. How do they increase profit and shareholder value, while maintaining a high level of service to an increasingly demanding client base?

There was a recent article in The Times about a carrier getting back to how it operated 30 year ago. This involves jettisoning parts of its product portfolio, reducing headcount and presumably becoming more profitable. Telecoms isn’t the first, and it certainly won’t be the last, area where this approach is practiced. But a fundamental question has to be asked. Although profit may be improved, with happier shareholders and investors, what about the customers paying the bills? Do they suffer an adverse level of service?

Our view is that to always buy directly from the established suppliers is not necessarily the best cost model nowadays. There is an abundance of network capacity, so working with a partner who can get you access to this capacity from a variety of suppliers, is certainly something to consider. These companies, which tend to be smaller, are more nimble. That means they can be both proactive and reactive, always looking at things from the customers’ viewpoint. Tellingly, they don’t have the suppliers’ interest as their foremost thought.

With such an approach, customers can be guaranteed service quality. That’s something to be highly prized in today’s marketplace. If one supplier drops, there’s another on hand. What’s more, nimble partners can shop around, getting the best price available. And that gets passed on through competitive customer costs.

At Crestwave Solutions, we’ve got happy clients – not supplier shareholders – already enjoying the benefits of this approach. Just give us a call if it’s something you’d like to consider and we’ll talk you through the options.