Telco Marketers Eye Over-the-Top Players as Opportunity, Not Threat; Providers Look to Boost Revenues Through Partnerships and

Telco Marketers Eye Over-the-Top Players as Opportunity, Not Threat; Providers 
Look to Boost Revenues Through Partnerships and Alliances 
Research Sponsored by HP Shows Marketers Are Enthusiastic About
Owning Customer Experience; Call for New Views Into Customer
Intelligence and Behaviors to Optimize Subscriber Pricing and Service
PALO ALTO, CA -- (Marketwire) -- 01/24/13 --   Marketers in the $1.3
trillion global telecommunications industry are being both challenged
and enabled by free over-the-top (OTT) communications service
providers, such as Google, Skype and Facebook. A new Chief Marketing
Officer (CMO) Council study, conducted in partnership with HP, shows
that while these companies are supplying customers with sophisticated
web-based features that are competing with fixed and mobile
operators, OTT players are also being courted for partnerships and
revenue-sharing opportunities by traditional communications services
providers (CSPs).  
Besides the legacy local and long-distance wire line phone services,
the CSP sector also includes wireless communications, Internet
services, fiber optics networks, cable TV networks and commercial
satellite communications. 
Some 44 percent of telco marketers who participated in the CMO
Council's new "Profitability From Subscriber Acuity" study during the
second to fourth quarters of 2012 are actively exploring OTT
partnerships and revenue-sharing opportunities. In addition, 31
percent are identifying potential revenue streams from new products
or services that can be offered to OTT players, including subscriber
analytics and behavioral insights. This represents a significant
shift in the mindset of telco marketers. Just one year ago, a CMO
Council study dubbed "Dexterity From Subscriber Complexity" reported
that OTT represented a threat, not an opportunity. In that study, 88
percent of executives considered OTT innovators as competitors, and
only 6 percent were actively forging partnerships. 
"This shift tracks with marketing's role of leading the charge for
new market and revenue opportunities," said Liz Miller, Vice
President of Programs for the CMO Council. "What is clear from this
study is that marketing has been tasked with owning the customer
experience and driving bottom-line revenue improvements. Considering
that research has put the potential revenue loss from OTT starting at
$13.8 billion in 2011 alone, it is not surprising that telco
marketers see OTT as an opportunity to exploit." 
While 222 CSP marketers participating in the study have oversight
across the majority of customer touchpoints that most impact customer
experience, they are still seeking deeper views into key front-line
areas like customer support, in-store strategy and channel
management. To facilitate the flow of information and processes
across these areas, marketing is also taking a more active role in
identifying key technology platforms and solutions as 38 percent of
respondents serve as the key decision makers while an additional 38
percent serve as key influencers in the technology selection process. 
But despite the significant commitment to advancing the customer
experience, marketers are being stymied by a lack of visibility and
insight into critical areas of intelligence and analytics. Only 5
percent of marketers have access to an automated solution that
leverages data and intelligence to enable improved decisions or
personalize individual engagements.  
This leaves most organizations to rely on: 

--  Monthly meetings where insights and intelligence are shared with
    senior management (59 percent)
--  Monthly customer insight and analytics reports (57 percent)
--  Analytics dashboards with limited general user profile information (43

"This lack of visibility into the key drivers of customer behavior
leaves a significant opportunity to drive incremental revenue and
improve engagement performance," said Miguel Carrero, Director of
Actionable Customer Intelligence Solutions, HP Enterprise Services.
"Marketing is being asked to sway behaviors but simply does not have
the tools needed to make those core decisions effectively. However,
this research also shows that above all else, marketers understand
what they need to be more effective and what points of measurement
will enable real change and improvements in the customer experience." 
Additional key findings from the report show that: 

--  Marketing is deeply involved in identifying and developing business
    opportunities, including new pricing plans or new products and
    services. Twenty-nine percent are driving the process while 36 percent
    are deeply involved as the key contributor.
--  Fifty-four percent of marketers are being brought into the pricing and
    product development discussion from the very start of the process
    versus 9 percent who feel they are brought in too late in the cycle.
--  Siloed data is the top reason marketers feel held back in their
    ability to influence and optimize pricing models. This is followed by
    the lack of a complete view of the customer (39 percent) and a
    corporate mindset that is resistant to change (37 percent).
--  Nearly one in four marketers feels as if he or she is introducing new
    pricing plans to customers all the time and is heavily leveraging
    in-store engagements, email and advertising in both traditional and
    online channels. Unfortunately, half of respondents feel these
    channels are only moderately effective.

The detailed findings of this study, along with summaries of in-depth
interviews with marketing leaders from global CSPs including AT&T,
Bell Canada, Deutsche Telekom, Etisalat, MTN, Optus, Orange, Sprint,
STC VIVA, Telefonica, Telstra, Virgin Mobile and Vodafone are
included in the 90-page comprehensive report, now available for
download from
( The
study is outlined question by question through summary findings and
detailed charts and also includes an infographic.  
About HP Enterprise Services
 HP helps the world's CSPs transform the
way they do business and grow in a fast-changing market. CSPs must
meet the huge demand for new, personalized services while building
high-speed networks and streamlining internal operations. Facing
competition from OTT rivals, CSPs must develop new business models
and revenue streams that leverage their core assets, the network and
customer information. HP is unmatched in its ability to help CSPs
drive transformation, with more than 30 years of telecom experience,
global IT leadership, expertise in entertainment and leadership in
consumer devices.  
HP offers an end-to-end portfolio, including core telecom network
infrastructure, convergent IT and telecom solutions, software
portfolios for OSS and BSS, service delivery platforms, subscriber
data management, cloud service enablement, professional services
(including business consulting, integration and managed
services/outsourcing), joint go-to-market programs, carrier-grade
servers, storage and wireless printers and notebooks. 
About the CMO Council
 The Chief Marketing Officer (CMO) Council is
the only global network of executives specifically dedicated to
high-level knowledge exchange, thought leadership and personal
relationship building among senior corporate marketing leaders and
brand decision-makers across a wide range of global industries. The
CMO Council's 6,500+ members control more than $350 billion in
aggregated annual marketing expenditures and run complex, distributed
marketing and sales operations worldwide. In total, the CMO Council
and its strategic interest communities include more than 35,000
global executives in more than 110 countries covering multiple
industries, segments and markets. Regional chapters and advisory
boards are active in the Americas, Europe, Asia-Pacific, Middle East,
India and Africa. The council's strategic interest groups include the
Coalition to Leverage and Optimize Sales Effectiveness (CLOSE),
Mobile Relationship Marketing (MRM) Strategies,,, Marketing Supply Chain Institute, Customer
Experience Board, Digital Marketing Performance Institute,
GeoBranding Center and the Forum to Advance the Mobile Experience
(FAME). More information on the CMO Council is available at 
Media Contact:
Crystal Berry
CMO Council
Director of Marketing Programs and Communications
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