Telco Operator's Guide to Survive a Tough Economy

Tough times can make or break a company, andlookout for cheaper ways to get what they need, and
whether companies make or break it all depends onso offering cheap alternatives like VoIP (Voice over
how prepared they are to deal with economicInternet Protocol) might prove to be lucrative. This is a
downturns. Careful planning and realistic goals havegood time to start looking for new value services to
become imperative as economic forecasts haveoffer, though telecom companies need to be careful
generally been dire. If the world's economy takeson how their new offerings are perceived. If
longer to heal than expected, how will telco companiesconsumers see the offering as something they can do
keep themselves in the black?without, the product will probably see dismal sales.
There are several ways to survive a dipping economyOf course, telecom companies should be prepared for
and as shown on the SmartCompany Dun &lower than usual takings, but as market shares go,
Bradstreet Industry Growth List for thehaving a significant piece of the pie is essential. As
telecommunications industry released last March, theresoon as consumers get their purchasing power back,
are also ways for companies to capitalize onpatient telcos can expect higher ARPUs (average
opportunities that crop up during tough times. Arevenue per user).
telecom company can survive the recession and keepExpand and Broaden the Network: Expanding the
itself from being in the red by playing its cards right andcustomer base and targeting a chunk of the market
having sound plans and back-up plans.share can be achieved by expanding the networks'
Customer Management: To keep revenues fromreach to cover other areas. Telcos should not hesitate
sliding, telecom companies should look at ways on howto tap into infrastructure sharing since that would
to keep their current customer bases strong, and howsoften rollout costs and can save money in the long
to attract new customers. Of course, the best way torun. Also, keeping a good sales team is important in
keep a solid customer base is to provide good Qualitygetting customers.
of Service (QoS) and give good value for money.Efficiency and Cost Effectiveness: Another part of
Consumers are more prudent during lean times, andsurviving the storm is keeping a tight ship. For some
telcos could definitely cash in on this fact. Good valuecompanies, this may mean restructuring the
is not necessarily the cheapest service in the market,organization, running efficiency checks, and cutting jobs.
but the best service at a reasonable cost. ConsumersKeeping a tight leash over accounts and credit since
these days have limited purchasing power and willtelcos these days really can't afford to be lenient in
therefore look into having the best value for theirterms of collecting its dues.
money. Offering good value and perks (bundledAs with infrastructure sharing, outsourcing may be a
services and incentives, among others) are goodgood option for telcos tightening their budgets, and it is
ways to keep customers from looking at othera cost effective solution to keeping the holes in the
providers.workforce in check and keeping good quality of
Offer New Services, Cheap Alternatives: Customersservice.
keeping an eye on their purses will always be on the