Top Five Middle Eastern Telco Business Trends To Watch Out For

by Buana Sari Digital Marketer

In the Middle Eastern economies, a telco revolution is underway. The Middle East and Africa telecom market, fueled by innovation and expansion, is set to grow at an impressive 5.28% CAGR during the forecast period (Source : Mordor Intelligence). Telcos like Saudi Telecom Company, Etisalat Group, Zain Group, Ooredoo Group, and Oman Telecommunications are the popular brands, driving connectivity and reach nationwide. Over the past 25 years, this region has seen a remarkable transformation in telecommunications, with all but a few countries embracing liberalization and private-sector investments.

Mobile communications, in particular, have taken the region by storm, boasting 400 million unique mobile users, with 280 million of them embracing mobile internet. The telecom sector has played a pivotal role in generating jobs, with nearly a million employment opportunities created directly and indirectly.

Technological advancement stands as the cornerstone of progress within the Middle Eastern telecom industry. Staying at the forefront of innovation is pivotal for telco businesses looking to amplify their revenue streams, and amidst this digital transformation, a new disruptive technology emerges in the form of moLotus mobile video customer interaction platform. The technology is partnering with global Telcos like Indosat Ooredoo Hutchinson, Airtel, Vodafone, Celcom, Maxis, Digi, etc. and has created successful campaigns for big brands such as HSBC, Suzuki, DBS, Amazon, L’Oreal, Panasonic and many others.

Surveys highlight that the moLotus mobile technology is gaining prominence as the preferred choice for the brands across a wide range of industry verticals, including banking, ecommerce, insurance, automotive, retail, consumer electronics, government sectors, and more. Industry experts are increasingly recognizing the new technology as the all-in-one adtech solution for all aspiring Telcos across the Middle East.

This technological leap empowers Telcos to cater to the intricate digital communication needs of their B2B as well as B2C customers. As the industry landscape evolves, a paradigm shift in telecom service assurance becomes a necessity. Telcos must reimagine their operations to navigate this dynamic digital terrain effectively.

Nonetheless, amid these promising opportunities, Telcos also face challenges. Unique tools, technical know-how, expertise, business support and capacity are in demand. Moreover, the emergence of new competitors, particularly the over-the-top (OTT) players, has significantly impacted the growth of the telecom industry.

As we explore the top five trends shaping this dynamic industry, it's evident that the Middle East and Africa's telecom future is exceptionally bright.

1. A Massive Shift Towards Mobile Advertising

In the Middle East, governments are putting emphasis on fostering sustainable economic development. At the heart of this endeavor lies the central role of mobile technologies, poised to exponentiate economic growth. According to Statista mobile advertising spend in the Middle East will reach a noteworthy USD 4.8 billion in 2023, constituting fifty-two percent of the total digital ad expenditure in the region. Many factors are influencing this growth, including rapid smartphone penetration, more affordability of data plans, and the hike in disposable incomes of customers. The MENA region is experiencing a significant boost in smartphone adoption, with the most substantial growth predicted in the region's under-developed mobile markets by the year 2025. This growth is supported by perpetual investments from Telcos in mobile infra.

moLotus, the breakthrough mobile advertising platform, stands as an exceptional opportunity for Middle Eastern Telcos in this growing mobile advertising landscape. It empowers Telcos to leverage their substantial subscriber base and deliver automated, personalized, customized, scalable, interactive ads directly to mobile users. It enhances telco marketing by better connecting Telcos with subscriber base via rich media content, irrespective of mobile device models or app availability. The outcome is more revenue generation via mobile advertising, an increase in lead generation, customer acquisition, engagement, retention and superior brand perception. moLotus high impact mobile video ads, in particular, are receiving more traction in the region, offering superior means to promote a wide array of products and services.

In the Middle East, social media usage is a popular online activity and a prominent platform for Telcos looking forward to leverage mobile advertising. Major social media platforms like Facebook, Instagram, and Twitter offer different advertising opportunities, providing telco brands with effective tools to reach their target customers.

Leading telecom operators like Ooredoo, a global player with a strong presence in the Middle East, are making huge investments in advertising. They have brought out a host of mobile advertising services, including in-app advertising and mobile video advertising. Similarly, Etisalat, a key telco operator in the UAE, is keen to embrace mobile advertising. The brand has launched many initiatives to support this growth, including a mobile ad platform for businesses to create and manage their campaigns.

Telecom operators, with their unique advantages, are now better positioned to thrive in the mobile advertising market. They have a considerable amount of first-party customer data consisting of demographics, interests, and usage patterns, which can be used to optimize mobile ads. Additionally, Telcos offer a massive customer base, serving millions, providing a huge audience for advertisers. Their control over mobile advertising networks helps them to optimize ad campaigns for best performance.

2. Digital Transformation Gaining Momentum

Middle Eastern Telcos have evolved significantly changing their roles - not restricting themselves to providing connectivity and high-speed data services. Instead, they are utilizing quick growth opportunities offered by the ongoing digital transformation. However, effective reimagining of legacy processes and their alignment with new paradigms requires a fundamental rethink.

Most Middle Eastern Telcos are investing in digital transformation to stay competitive. One transformative solution empowering Telcos is moLotus. It equips Telcos in automating customer processes, making them faster, convenient, and hassle-free. The advanced automation capabilities of the moLotus platform and technology are being utilized to automate various telco customer processes, including onboarding, reminders, thank you communications, and more. This automation not only reduces costs but also boosts revenue and improves customer engagement.

There is an increased adoption of cloud computing by some Middle Eastern Telcos to enhance operational efficiency and agility. Utilizing cloud-based solutions enables telecoms to cut costs, boost scalability, and accelerate the launch of new products and services. Additionally, Telcos are leveraging the power of Artificial Intelligence to enhance their operations, including customer service, security and network management. For example, AI-driven chatbots provide round-the-clock customer support, while machine learning algorithms trace and prevent network issues.

Key operators in the region are at the forefront of this digital transformation. Etisalat, an important player in the UAE, is making considerable investments in 5G, cloud computing, AI, and ML to revamp its business and meet the surge in demands of its customer base.

Ooredoo, a global telecom operator with a formidable presence in the Middle East, is leveraging digital technologies to improve business efficiency and customer service. The company is also channeling investments into new digital services, such as video streaming and e-commerce. Ooredoo Kuwait has dramatically digitized and automated its services to differentiate from the competition.

In Saudi Arabia, STC, a leading telecom operator, is heavily investing in cutting-edge technologies like 5G and cloud computing. These investments are aimed at transforming its business operations and supporting the broader digital transformation of the Saudi economy.

An interesting illustration of moLotus's potential lies in its capability to automate, reimagine and streamline processes – service and payment reminders, renewals, loyalty, and customer onboarding. In doing so, it enhances the efficiency of these Telcos, exceeding customer expectations, improving both top-line and bottom-line performance, and significantly curbing costs.

3. Leveraging Big Data To Boost Revenue Generation

Telecom operators in the Middle East are looking forward to unlocking the untapped potential of their big data assets. With traditional revenue streams from voice and SMS services on the decline, Telcos are increasingly turning to their vast reservoirs of big data to not only offset these losses but also to generate new avenues of income. The Middle East is experiencing a rapid ascent in the big data monetization market, projected to surge from USD 2.5 billion in 2022 to an impressive USD 5.4 billion by 2027, charting a formidable CAGR of 23.8% during this forecast period.

Intriguingly, Telcos wield several strategic tools for monetizing their big data assets. Among these transformative tools, moLotus shines as a powerful example, leveraging subscriber data to create personalized campaigns. This data is leveraged by moLotus to offer valuable insights turbocharging revenues and decision-making. Harnessed for mobile advertising and customer enhancements through moLotus, it's a catalyst for elevating ARPU and growth. Telecom operators can offer moLotus generated customer data insights to advertisers and brands, while safeguarding customer privacy. Moreover, Telcos can engineer value-added services that leverage customer data to offer personalized recommendations, improving their revenue-generating potential.

As the future of big data monetization in the Middle East shines brightly, propelled by the escalating adoption of big data analytics by businesses and governments across the region, Telcos that adeptly navigate this landscape and successfully monetize their data assets are poised to diversify their revenue streams and foster substantial business growth. Main players like Etisalat and STC are utilizing their big data assets to design innovative customer-centric services, from personalized product recommendations to innovative content curation.

However, the path to big data monetization is not without ethical considerations. Concerns often arise regarding data privacy and consent, with the potential for telecoms to collect and sell data without permission from customers. To address these concerns, Telcos must take care of transparency in their data collection processes and usage practices, ensuring that customer consent is diligently obtained before any data is shared with third parties.

4. Striking Strategic Alliances on the Rise

In the Middle Eastern telecom sphere, strategic collaborations are emerging as potent instruments for fortifying revenue streams. Allying with the right tech entities not only increases the reach of Telcos but also leverages their assets together with complementary expertise, carving out a more competitive edge. However, it's worth noting that not all partnerships are created equal. Telcos need to be discerning when selecting their strategic allies. Opting for trusted ad tech platforms like moLotus can substantially elevate the outcomes of these partnerships. By partnering with moLotus, Telcos gain access to a unique and powerful platform that enables hyper-personalized, direct-to-inbox advertising. This revolutionary approach not only enhances brand visibility but also significantly boosts revenue generation.

Partnering with moLotus, Telcos can leverage the platform's resources, knowledge base, and tech acumen. This cooperative approach often leads to cost efficiencies, streamlined operational effectiveness, and access to deep insights. moLotus not only simplifies the customer experience for Telocs but also opens up an avenue for highly targeted and effective advertising, contributing to increased customer loyalty and brand perception.

Several Telcos are on the move striking partnerships with technology platforms recently. Consider Etisalat, a stalwart among operators in the UAE, which has allied with Magnite, a global advertising platform. Their aim is to provide ad tech solutions to Middle Eastern businesses. Similarly, Ooredoo, another global Telco with a formidable Middle East presence, has allied with PubMatic, a global digital advertising tech company, to deliver advertising solutions to regional enterprises. Meanwhile, STC, a Telco leader in Saudi Arabia, has found a valuable partner in InMobi, a global mobile ad platform, to provide mobile advertising solutions in the Middle East. Also, Mobily, a Saudi Arabian telco, has formed a partnership with OpenX, a worldwide digital ad tech company, to give digital marketing solutions to regional entities.

5. More Thrust Towards ARPU Growth

Telcos in the Middle East are facing the pressing challenge of revitalizing their Average Revenue Per User (ARPU). Just like their global counterparts. Some of them have experienced growth in new customer acquisitions and revenues in recent years. However, sustaining this momentum is proving to be a big challenge, particularly with mounting economic pressures.

Regrettably, projections for the Middle East's telecom industry indicate a decline in ARPU for the year 2023. Several factors contribute to this downward trend, echoing global telco challenges. The greater use of OTT services, including WhatsApp, Facebook Messenger, and Netflix, enables users to communicate and access content without consuming mobile data, directly impacting ARPU. Furthermore, rising living costs across the Middle East are tightening household budgets. In response, customers are reducing their expenses on telecom services, further compounding the ARPU decline.

Nevertheless, experts recommend a strategic shift for Middle Eastern Telcos. To counter this trend, integrating innovative mobile marketing technologies like moLotus emerges as a viable solution. By adopting such technology, telecom players can effectively engage customers, deliver more value, and optimize every element of the customer journey. This, in turn, promises a swift recovery of ARPU.

However, what sets moLotus apart is its proven track record of significantly boosting ARPU for telecom brands from 2% to 4%. Extensive studies have demonstrated that numerous Telcos have witnessed remarkable increases in ARPU, varying between two to four percent, following the inclusion of moLotus in their marketing mix. The implementation of moLotus's pioneering marketing capabilities not only elevates customer responsiveness but also drives revenue growth and enhances overall business performance, all while keeping operational costs in check. The technology's proficiency extends to fostering cross-selling, upselling, and add-on campaigns, ultimately contributing to amplified customer lifetime value and an impressive ARPU uplift.

With a positive outlook and a commitment to utilizing moLotus's smart capabilities, Middle Eastern Telecom leaders are quite optimistic about uplifting their ARPU, thereby ensuring perpetual growth.

Conclusion

These emerging trends hold immense significance for Middle Eastern telecom businesses. Adapting to the evolving digital landscape is no longer an option but a necessity to thrive in this dynamic sector. The move toward embracing digital transformation, capitalizing on big data monetization, and forging strategic partnerships can redefine the industry's future. These changes are already underway, unlocking new opportunities for Telcos in the region.

To remain competitive, it's crucial for Telcos to stay informed, flexible, and ready to embrace these trends. By keeping a close eye on transformative forces like moLotus, they can continue to shape the telecommunications landscape in the Middle East, ensuring a vibrant, prosperous, and customer-centric future.