With the aim of increasing revenues, operators are focusing on tapping the enterprise segment. They are extending services to enterprises in Tier I and Tier II cities and shifting their attention towards emerging technologies such as cloud computing. However, they face several issues related to security and uptime in delivering services. Experts share their views on the opportunities, challenges and the future of the enterprise telecom industry…

What business opportunities does the enterprise segment offer to telecom operators?

Aditya Chaudhuri

The enterprise market for the telecom sector is estimated to be over Rs 750 billion and is growing at a compound annual growth rate of 13 per cent. Operators are mainly focusing on the fixed, data, managed services and network integration segments. Going forward, service providers need to look at the enterprise segment as an area for inorganic growth as several players in the value chain need to be integrated to deliver end-to-end services.

 Sandeep Gupta 

Voice and data services continue to account for the majority of operators’ revenues from enterprises. However, of late, m-computing and cloud services are becoming popular in the segment. The proliferation of data centres has opened up another growth avenue for operators. They are also targeting enterprises with large distribution channels and helping them expand their existing network. Residential apartments is another segment where operators intend to provide basic telecom services along with broadband connectivity and intercom services.

The key growth drivers for the enterprise segment are increasing digitisation and government initiatives including e-governance services. The roll-out of optic fibre cable (OFC) networks is also contributing to enterprise service uptake.

Ashish Khanna

An important business segment for telecom service providers worldwide, the enterprise segment is gaining traction in India as well. In light of this, operators are looking to offer services beyond mobility voice and data products. From the revenue point of view, the segment offers a significant business opportunity for service providers as the industry supports long-term contracts and the churn rate is low.

The increasing adoption of smartphones and growing use of applications have led to the convergence of various technologies. Consumerisation of IT, social media, web-based technologies and cloud are some of the emerging areas where service providers can step in and support enterprises. With the growing acceptance of the bring-your-own-device (BYOD) concept, operators can also offer security and support services to clients. The enterprise segment is moving from product offerings to managed services.

  What are some of the key solutions and applications offered to enterprises? Which of these have been the most popular? 

Operators have focused on access-based solutions such as primary rate interface lines, MPLS links and bandwidth solutions along with co-location services, videoconferencing, conferencing bridges and hosted PABX solutions for catering to enterprises. The need for managed network services and solutions has been the key driver for the signing of large annuity deals by enterprises wherein they have outsourced their entire network services, including voice and data, to operators to reduce costs.

Sandeep Gupta 

 Ashish Khanna

The majority of the telecom products and solutions can be divided into three broad categories. These are voice and data (unified communication, etc.) IT and software (storage, backup, mail and enterprise resource planning solutions) and machine-to-machine (M2M) communication.

 What are the key challenges in serving enterprise customers? How do you tackle their security- and convergence-related issues?

Aditya Chaudhuri

There are three main issues that seem to be emerging from the future requirements of enterprises, which are also translating into challenges for operators. These are:

•   Seamless, reliable, any time, anywhere connectivity which includes fixed, mobile, data, voice and video services.

•  VAS including bundling with devices based on a BYOD model being used by most enterprises.

•   Focus on cost and availability of applications as well as services.

Security is an integral part of the solutions being proposed. Convergence of access, devices and applications is crucial for an enterprise. The solutions provided depend on specific requirements such as applications, devices, geographic spread, volumes of data and industry.

 Sandeep Gupta

Ensuring the security of an enterprise’s telecom network is one of the biggest challenges faced by operators. However, it is an industry-wide phenomenon and currently, no single player in the market can claim to provide a more secure network than its competitors.

Another key concern for operators is maintaining network uptime and providing a satisfactory customer experience. Operators with their own OFC network as well as global connectivity have an edge over players that use other operators’ networks for offering services to enterprises.

From the clients’ perspective, last mile connectivity is an issue. For example, if an enterprise wishes to connect its Delhi and Rohtak offices, an operator may struggle to establish the connectivity if it does not have a telecom network in Rohtak. To overcome such challenges, operators have collaborated to use each other’s networks.

 Ashish Khanna

Despite having products and services for the enterprise market and access to clients, telecom operators face two key challenges in serving the segment. First, they do not have in-depth knowledge of the segment and lack awareness regarding specific business requirements of enterprises. Second, operators are not agile enough to provide the complex IT services and solutions required by the segment.

 What are the upcoming technology trends in the enterprise telecom domain?

Aditya Chaudhuri

The enterprise segment will witness significant technology advancement to access better speeds and reliable connectivity. This will allow the use of smart devices including smartphones, cameras, tablets, watches and household devices, which will be a part of the connected community of devices. Enterprises would also go for applications like remote health care, metering, location-based services and videoconferencing using basic telecom infrastructure.

 Sandeep Gupta

In the past, several new technologies that were targeted at the enterprise segment gained traction. For instance, videoconferencing, which was considered a premium product, has become an essential tool for enterprises. In order to explore new markets for promoting the adoption of videoconferencing and other solutions, operators are targeting Tier II and Tier III markets.

Further, operators are depending on cloud computing to drive data consumption of the enterprise segment. Service providers will also focus on introducing integrated solutions to address the technology needs of enterprises.

 Ashish Khanna

Cloud computing and BYOD are the two fast emerging concepts in the enterprise telecom domain. Operators will have to come up with solutions to address security issues arising from a large workforce moving to BYOD. With the increasing number of connected devices, service providers will have to come up with an M2M strategy and select relevant platforms and partners to penetrate the M2M market.

 What should be the future growth strategies to tap this domain?

Aditya Chaudhuri

There are two approaches that operators can take. First, they can work in a cohesive manner in order to prevent duplication of existing services and reduce the go-to-market time. Second, operators should develop products for specific segments, which can then be used to build a product portfolio for enterprise customers.

 Sandeep Gupta

Operators need to have a harmonised and integrated approach to products and services offered to clients. In addition, service providers need to be more transparent regarding the technology deployed. They should give enterprises a greater say in the choice of technology by giving them more access to products and services.

 Ashish Khanna

In order to tap opportunities in the enterprise segment, operators need to address issues related to credibility. They need to form alliances and devise a go-to-market strategy with industry leaders. They should also look at moving from a capex-based business model to an opex-based model. In addition, service providers need to leverage their existing network of product capabilities to create geographic reach to cater to the requirements of enterprises. They also need to change their approach to the enterprise segment. They should recognise the significance of enterprises as a business segment and allocate adequate resources to seize the opportunities it offers.