With MWC Barcelona happening this week at the Fira Gran Via, Ariana Lynn, Principal Analyst at The Fast Mode spoke to Stacy Hamer, COO of iQmetrix on the company's participation at the event.
Ariana: What are some of the key themes of this year's MWC?
Stacy: The key themes of this years event is:
- 5G and Beyond: 5G has been a catalyst for building intelligence at the network edge, and with the next phase of 5G Advanced underlining the need for end-to-end AI integration, future mobile generations will learn fast, self-orchestrate, and open new possibilities of how we can interact with our devices.
- Connecting Everything: The industry is truly connecting everyone, but with the number of connected IoT devices set to reach over 15 billion in two years, connecting everything requires network solutions that are open, seamless, sustainable, and secure.
- Humanising AI: The impact of Generative AI continues to create headlines but within a fast-changing tech landscape, it is important to focus through a practical lens.
- Manufacturing DX: Manufacturers are putting significant time and money behind their digital strategies. While 5G provides benefits to all economic sectors of the global economy, manufacturing, driven by applications such as smart factories and warehouses, may benefit most with its natural setting for private wireless networks and data-led solutions.
- Game Changers: Where is technology going in 2024? Looking ahead is always a tricky business, particularly with the rise of technologies that have the potential to fundamentally change industry dynamics.
- Our Digital DNA: Across the telecom ecosystem, sustainability, diversity and attracting new talent has extended beyond corporate social responsibility to become core strategic priorities.Our digital future is emerging and it’s vital to implement change by making societal change part of our DNA. Our digital DNA.
The theme that iQmetrix is most excited for is the discussion around Connecting Everything. In such a dynamic and transformative era, iQmetrix has built a new category of technology that is revolutionizing telecom retail - Interconnected Commerce. Our many-to-many integrated multi-channel solution streamlines technology stacks, provides better channel management, improves device activation and creates a better experience for the end customer.
Humanising AI is another key focus in telecom retail as there is little doubt that AI is changing the world of retail, through cohesive omni-channel experiences, personalized suggestions for customers, 24/7 customer service, and even in combating cyberattacks. As iQmetrix’s Chief Operating Officer, I’ve been encountering more and more clients interested in leveraging AI-powered in-store virtual assistants to improve customer experiences. I’m excited to hear more about this topic at this year's event.
Ariana: What are some of the events that iQmetrix has lined up after MWC?
Stacy: iQmetrix is thrilled to announce the return of its in-person event this year, with an exciting evolution: SummitX.
SummitX by iQmetrix is the only event of its kind with a focus on telecom retail and Interconnected Commerce. We bring together all stakeholders from the industry – carriers, retailers, operators, device manufacturers, vendors and more – creating an interconnected community space packed with thought-provoking content from experts and entrepreneurs, unmissable keynotes from celebrated speakers, space for idea-sharing with industry professionals, and essential networking events. We also make sure there are some epic experiences and lots of fun along the way.
X is for the great experiences we’ll create.
X is for interconnectivity and intersectionality.
X is for the 10 (long) years since our last Summit.
The theme for SummitX 2024 is “Innovation | Insights | Inspiration | Interconnection” and these four elements will serve as conference tracks in the agenda, which will be finalized later in the year.
SummitX will be held at a fabulous resort destination in Scottsdale, Arizona, on October 27-29, 2024. The venue will be unveiled and early-bird registrations will open in March. In the meantime, those who would like to sign up for updates can do so here.
Ariana: What's the outlook for telecoms, specifically the mobile industry in the next 12 months?
Stacy: One of the key factors shaping the telecom sector right now and over the next year is the remarkable rise of Mobile Virtual Network Operators (MVNOs) in the US wireline cable segment. This growth has been fueled by substantial year-over-year subscriber increases and a strategic pivot towards wireless services by cable companies, which is adding significant competition to established telecom carriers.
These wireline companies have been able to gain wireless market share through aggressive bundling of wireless and internet services. Why is bundling winning subscribers? Several factors, including:
- In the face of rising food, rent, and energy costs, price-conscious consumers are always looking for bargains and discounts, especially on necessary services.
- Most younger consumers (especially Gen Z and Alpha) don’t care about “types” of connection or “prestige” brands. They want the cheapest service that will get the job done.
- Bundling brings convenience. Bundles come with only one bill, and streamlines the integration of wireless, tablet, TV, streaming, internet, and smart home devices when it’s handled through one provider.
Charter, in particular, has emerged as the dominant player in the wireline MVNO space, outpacing competitors with an impressive 47% year-over-year growth in subscriptions to its Spectrum wireless services between Q4 2022 and Q4 2023. While wireline MVNOs’ subscriber bases still represent a small slice of the overall US wireless market, that share is expected to keep increasing.
Another rapidly changing element of the telecom sector is in the US prepaid space, as large players make plays to capture this source of customers. Verizon’s prepaid brand Total by Verizon, for example, is planning on opening thousands of stores in the US this year, which has created a frenzy of business-grabbing from the authorized retailers and sub-agents who want to operate those stores and rapidly scale their retail locations.
Jason Raymer, Senior Vice President of Revenue at iQmetrix, cautions that businesses need to take a long-term view of these opportunities: “A lot of these prepaid retailers are thinking only about the transaction, because that’s truly all that matters to them right now. So, while these folks are rapidly setting up stores, it’s important to also think about how they scale their business operations longer term, if they want to succeed.”
Added to that, the complexities of operating multiple stores in a high-product-value, low-profit-margin retail vertical can be tough to manage without a robust system of business analytics - especially in the high-risk geodemographic locations that prepaid stores are most prevalent in. “It even plays into fraud prevention,” added Raymer. “If retailers don’t have the right reporting behind the transaction, they can’t manage their costs and losses in an already low-margin business. As they want to grow stores, they need technology that grows with them that’s easy to roll out.”
The telecom retail outlook
In the combined postpaid and prepaid wireless retail sector, despite continued economic uncertainty, most telecom retail operators are optimistic about device sales in the immediate future. In a question on wireless retailers’ business outlooks in iQmetrix’s Trends in Telecom Retail survey, nearly 60% of respondents said they expected sales of new wireless devices to rise over the next three years.
This seems contradictory to one of the most concerning trends for our respondents, which was the decreasing demand for new smartphones due to less frequent upgrades and longer buying cycles. This is largely caused by the advanced level of technology in today’s cellphones making upgrades less necessary or desirable, coupled with consumer belt-tightening. Nearly half of all retailer respondents (45.69%) said that, to some degree, smartphone demand has declined in the past year. However, some of their overall business optimism might stem from plans to diversify product sales. When it comes to smart home devices, for example, a healthy majority (78.7%) of respondents expect an increase in retail sales over the next three years.
The introduction of eSIM technology is a newer hurdle for wireless retailers to overcome. The vast majority of respondents - nearly 86% - see business opportunities of some kind with eSIM, and most are formulating strategies around it. But a third also see it as a threat to their physical retail channels, given that customers can purchase eSIMs online from the carrier and activate it wherever they need, so it might obviate the need for the brick-and-mortar store.
