fbpx
Connect with us

Telecoms

Telecom operators and reducing customer churn

Inside Telecom Staff

Published

 on

Telecom operators usually consider two main factors in their plan to maintain and increase their business revenue. The first factor is the act of acquisition where companies are more focused on acquiring new subscribers to use the service being offered by the telco. The second factor is the act of retention whereby the goal is to maintain the current users of the service for as long as possible. In terms of costs – in the majority of cases – acquiring a new user can cost up to 5 times more than retaining a current one. In parallel, a slight increase in the retention rate by 5% can lead to increasing profits by an average of 60%, according to a report by Bain & Company.

Churn rate introduction

According to the American Customer Satisfaction Index which measures the overall customer satisfaction and its determinants by sector, the report cites that the telecommunication sector is one of the top 10 with a score of 72.2. 

From the above insights, we can understand the importance of retention. The opposite of this is churn rate, which addresses users who are leaving a specific service. Customer churn is considered an essential factor for any innovative service that a telco intends to launch.  

How can telcos reduce customer churn? 

Reducing the churn rate for telcos is challenging and can vary from one service to another. Tapping into the user experience is key to reducing the rate. By using data collected on customer behaviors, telcos can tailor a service to match customer interests to ensure they deliver the best service and reduce the customer churn rate significantly.

A daily-life scenario 

Let’s consider a family of 5 who use data on a daily basis. In the morning, the mom may be looking for recipes and meal inspirations, which would enable a telco to customize content to match the needs of the user. In the afternoon (when school ends), telcos ascertain that the content being consumed is primarily by the kids in the family, hence, telcos can push relevant content which may peak a young person’s interest at this particular time of day. 

The way forward

The conclusion that can be made here is that telco services are in need of more real time decision making on the type of service/content offered to their subscribers, which amplifies the need for intelligent systems like AI, ML, etc. to be integrated seamlessly within their network.

Article Written by Mr. Hussein Taki, Business Development Director at Mondia Group.

Advertisement

We’re a diverse group of industry professionals from all corners of the world. Our desire is to provide a high-quality telecoms publication that caters to an international market, offering the latest and most relevant telecoms information to businesses, entrepreneurs and enthusiasts.

Telecoms

Three Angolan operators cleared for IPO listing with more to come

Inside Telecom Staff

Published

 on

Three Angolan operators cleared for IPO listing with more to come

Angola has cleared the way for three state-owned telecoms companies to be listed on Initial Public Offerings (IPOs), according to a presidential decree published on Thursday.

Local media have reported that two presidential decrees have authorized IPOs for the privatization of state assets in TV Cabo Angola and Multitel respectively. However, a third decree has sanctioned a “limited tender by prior qualification” for the government’s shares in internet service provider Net One.

It is important to note that all three orders grant the country’s finance minister lead authority over privatization efforts, which include decisions over the validity and legality of the process.

Angola’s sale of its stakes in several telecoms companies is part of President João Lourenço’s strategy to oust his predecessor’s family from the country’s business community.

Angola Telecom, which is wholly owned by the government, holds a 49.27 percent stake in TV Cabo Angola and a 30 percent stake in Multitel. Another 60 percent of the latter firm is held by state-owned enterprises, with oil firm Sonangol taking 40 percent and Banco de Comercio e Industria (BCI) holding 2 percent.

The entire 90 percent state-held stake in Multitel is set for privatization, along with 51 percent of Net One held by MSTelcom, which is wholly owned by Sonangol.

In parallel, several media reports have surfaced noting that five other Angolan operators will also be auctioned off during 2021 under the government’s privatization initiative. These include AT, Angola Cables, Angola Comunicacoes e Sistemas, MSTelcom and Unitel, which is the mobile market leader.

Telephone directory company ELTA and postal operator ENCTA may also be privatized to some extent.

A 60 percent stake in Angola Cables is currently split between AT (51 percent) and MSTelcom (9 percent). Angola Comunicacoes e Sistemas is 100 percent owned by MSTelcom and Sonangol, which itself is tapped for privatization by 2022.

MSTelcom and Sonangol also each hold a 25 percent stake in Unitel, with the former’s slated for sale via public tender. The latter obtained its holding from Brazil’s Oi in January 2020.

Continue Reading

Telecoms

Virtual Card for online transactions created by Airtel Uganda and Mastercard

Karim Hussami

Published

 on

Airtel Uganda and Mastercard

Digital transformation is evolving so rapidly worldwide to the point where it has transformed our lives by digitizing each aspect of it, especially the financial part, and will continue to do so in the next few years.

While total transaction value in the digital payments segment is projected to reach US$6,685,102m in 2021, according to Statista, “The total transaction value is expected to show an annual growth rate (CAGR 2021-2025) of 12.0 percent resulting in a projected total amount of US$10,520,219m by 2025.”

That said, Airtel Uganda, in partnership with Mastercard, introduced a virtual debit card offering Airtel Money customers a safe, convenient and secure platform to transact online globally.

Virtual card to help non bankers

How will this new form of payment help customers? The virtual card which is valid for one year allows Airtel Money customers in Africa, especially those without a bank account, to make payments to local and global online merchants.

Those merchants like Netflix, Uber, Amazon, Google play, Aliexpress, Alibaba, accept Mastercard cards while maintaining that the customer’s financial data is always secure and private.

Amit Kapur, Chief Commercial Officer Airtel Uganda, said “Airtel and Mastercard have a shared passion for digital transformation and making mobile financial services accessible to everyone across the country. Airtel Money customers can conveniently do online shopping, pay tuition and subscriptions to their favorite sites and apps by simply registering for a virtual card through very easy and familiar steps.”

In addition, customers have the option to delete the card whenever they want and create another one immediately re-highlighting the security proofing the card offers.

“Across the MEA region our digital partnerships strategy remains focused on enabling digital transformation for our partners so that their consumers can enjoy seamless access to payments and a superior experience. We are very excited to partner with Airtel to lead the transition to digital by enabling access to their millions of consumers for online and in-person payments across the globe,” Amnah Ajmal, Executive Vice President for Market Development, Mastercard Middle East and Africa, said.

Since the virtual card is linked to the customer’s Airtel Money Wallet, the Airtel Money balance is always the card balance. All transactions have a maximum charge of UGX1,000.

Check frauds and additional risk

Every new technology has its pros and cons, and the virtual card is also comprised in this category.

The advantages include:
  • The ability and capacity to check for fraud related activities.
  • The cards have a short time lap and expire within a short period, making hackers not interested in them.
  • The processing fee is very low compared to other payment schemes on the internet.
  • No fee is processed without the consent of the buyer.
The disadvantages include:
  • Risk taken by the merchant because the goods are delivered to the customer before the money is transferred to the company account.
  • The recurrent expenses become a hassle because, your card number is likely to have expired by the time of your next purchase period.
  • There is a long wait between the sale and the payment being deposited in the merchant’s account.
Continue Reading

Telecoms

Uganda bans social media in run off to presidential election

Yehia El Amine

Published

 on

Uganda bans social media in run off to presidential election

Uganda’s communications regulator has imposed a blanket ban on all social media and messaging apps since Wednesday until further notice, South African telecoms company MTN Group said in a statement.

Reuters confirmed it had seen a letter from the Ugandan communications regulator dated 12th January 2021 which ordered internet service providers to “immediately suspend any access and use, direct or otherwise, of all social media platforms and online messaging applications over your network until further notice.”

The social media ban comes on the eve of a tense presidential election, which sees long-time leader Yoweri Museveni go toe-to-toe with popular singer Bobi Wine (otherwise known as Robert Kyagulanyi Ssentamu).

According to Internet monitor NetBlocks, Ugandans faced difficulties accessing the Internet via mobile devices and wireless connection as of Wednesday, as the country entered its nationwide blackout from 7 p.m. (16:00 GMT).

“I can confirm that MTN Uganda and all Licensed Telecommunication Operators in the country have received a directive from Uganda Communications Commission (UCC) to implement a suspension of the operation of all internet Gateways and associated access points,” Nompilo Morafo, MTN’s group executive for corporate affairs told Reuters.

MTN Uganda (MTNU) is Uganda’s leading mobile operator with 60 percent of the market.

“MTNU will continue engaging with the relevant stakeholders to limit the duration of the service disruption,” Morafo added.

Reuters cited an anonymous source from Uganda’s telecoms sector as saying that the government had “made clear” to executives at telecoms firms that the ban was a retaliatory move after Facebook blocked access to certain accounts supporting the government.

Facebook confirmed on Monday that it blocked a network located in Uganda with apparent links to the country’s communications ministry for posting from fake and duplicate accounts.

“Any efforts to block online access to journalists or members of the public are unacceptable breaches of the right to information,” Global media watchdog The International Press Institute said in a statement regarding the Ugandan government’s blackout.

The upcoming election has been riddled with controversy, with the government violently cracking down on opposition rallies citing a breach in their COVID restrictions on large gatherings.

In parallel, supporters and various rights groups have accused the government of attempting to stifle Museveni’s opposition.

Wine has amassed a huge following within the country’s young electorate, where almost 80 percent of the population falls under the age of 30. Wine is aged 38, which is half Museveni’s 76 years.

President Museveni has been the country’s long-time president since seizing power as a guerilla back in 1986 and is widely credited to have stabilized the country following the bloody dictatorships of Milton Obote and Idi Amin.

Museveni, however, has long been accused of intimidating opposition candidates and supporters as well as rigging elections since his party – National Resistance Movement party – introduced them ten years into their reign.

The lead up to elections has been extremely violent to say the least, with 54 killed by police and military officers following protests that erupted back in November 2020 when Wine was arrested by authorities.

The popular singer has mainly relied on Facebook to cover his campaign and press conferences, as most local media outlets are state-owned, much of whom refusing to give Wine a platform.

Continue Reading

Trending