Transformation has become a staple of the telco TV industry over the last few years. Along with technological advancements, evolving customer behaviors have forced many telcos to rethink their core business models and adapt their operations.
At the center of this shift has been the continued rise and evolution of cloud-based platforms. This is what has allowed end-users – particularly younger generations – to consume TV content in new ways, satisfying the increasing appetite for on-demand content streaming while ensuring speed and quality.
It has required telcos to update their technology stack, grow their workforce, and introduce new services in order to meet demand. And of course, the Covid-19 pandemic further increased the pressure on telco operators during a period of global uncertainty.
But it’s by no means all bad news. Those same technology advancements have also presented new opportunities for telcos to keep pace with changing consumer preferences, solving many of the technical pain points that have historically hindered performance. That’s why, amidst these landscape shifts, many telcos have decided now is the time to re-evaluate their TV strategy and integrate managed service providers (MSPs) into their operations.
The power of MSPs
With the rise of cloud platforms and SaaS models in the telco TV industry, the managed services approach has become an increasingly viable and economically beneficial option for many operators. For example, it allows them to outsource specific sections of a tech stack, versus an entire network or service. Telcos can pick and choose the segments of their stack that would be more effectively managed by an external specialist – such as a specific component of their TV service that they have less experience in managing – and keep the management of the other portions in-house.
Additionally, partnering with a cloud-based MSP can help support growth in a way that wasn’t possible five to ten years ago. Instead of outside consultants having to physically visit a customer’s facility to manage on-premise systems, the availability of advanced cloud technologies and IP networks now enables entire services or networks to be managed from anywhere in the world. The ability for MSPs to operate network components remotely via the cloud has significant implications for scalability. This approach reduces the reliance on on-premise operations while making it much easier, faster, and more cost-effective for telcos to scale their TV operations up or down as required.
Finally, embracing managed services helps solve challenges around recruitment and internal resourcing. According to Korn Ferry’s Future of Work report, the global technology, media and telecommunications sector will experience a deficit of 4.3 million skilled workers by 2030. This highlights how difficult it is for telcos to find and retain talent with the right skills and experience to manage complicated TV infrastructures.
Working with an established, market-specific MSP eliminates that problem, providing the peace of mind that operations are being handled by professionals with a proven track record and industry expertise. Given the remote nature of operations today, MSPs also have the ability to recruit from a wider pool, which helps ensure they are utilizing top talent.
Optimizing business models
Another result of the evolving telco landscape – on top of evolving consumer demands – is the increased focus on operational excellence over pure business growth. More TV operators are now prioritising cost optimization and shifting from technical feature differentiation to operational alternatives that are cheaper and more effective.
This is another key reason why working with an MSP makes good business sense. Outsourcing all or part of their technology stacks allows telcos to shift from a CAPEX to an OPEX-based model for the non-core parts of the business. This offloads the pressure of necessary and often huge investments in core business infrastructure elements such as fibre and 5G.
The operational expenses are also used more efficiently when operations are being handled by specialists with years of experience and scale that is likely to be larger than that of an individual telco. Finally, in addition to reducing operational overhead costs, giving an experienced MSP the freedom to develop the platform also helps increase the speed of innovation and frees up employees to focus on other key aspects of the business.
Ultimately, recent technological innovation has made the telco industry increasingly competitive and dynamic. Being agile enough to embrace change and meet new consumer demands are key to success in today’s telco environment. Partnering with an MSP offers a way to ensure that agility in a more cost-effective way. From enabling scalability and reducing overhead costs to optimizing operations and ensuring a more efficient use of resources, the right MSP can give any telco the freedom to capitalise on new market opportunities and drive future success.
To find out how Agile Content can help, learn more about the Agile TV Platform.