I had the privilege of authoring the foreword to this year’s Broadband Outlook Report, published by Telecoms.com Intelligence. The report provides a comprehensive run-through of the most current and pressing technologies affecting the broadband delivery industry today. This year’s theme is “Digital Transformation,” one of the telecom industry’s most nebulous and ill-defined terms.
The Broadband Outlook Report is based on quantitative research from more than 600 telecommunications and internet professionals, with over 50% of respondents representing communications service providers (CSPs). Inside you will discover:
- How CSPs define digital transformation
- What percentage of CSPs have a digital transformation strategy
- Which capabilities CSPs say are the most important to improving the digital experience
- And much more insight into the telecom industry’s digital transformation imperative
I have provided the full script of my opening remarks below, entitled “The Road to Digital Transformation is Paved with DNS.” If you would like a copy of the Broadband Outlook Report, you can download it here.
The dramatic growth in demand for online connectivity, fueled by the mobile internet boom, has created an overwhelming challenge for communications service providers (CSPs), resulting in a market situation we call the “digital transformation paradox.”
While the digital economy has flourished on the back of their networks, CSPs have been forced to keep pace by investing significant amounts of money into network infrastructure. Such financial burdens have made it nearly impossible to commit innovation and development resources towards higher-value digital services in order to thwart competition from over-the-top (OTT) players.
Herein lies the paradox: CSPs created the very infrastructure that enabled a thriving digital economy, but, through no fault of their own, have not reaped their fair share of the reward. CSPs are now turning the tide and moving up the digital transformation curve—a representation of the key steps needed for CSPs to digitally transform into subscriber-centric digital service providers (DSPs).
Now, the tables are turning. CSP infrastructure investments cost-efficiency gains are paying off. As telecom providers undergo the transformation from CSP to DSP, they are shifting their focus from the “network” to the “subscriber” in order to deliver personalized, value-added services that create a compelling online subscriber experience.
“The Digital Transformation Curve represents the key steps needed for CSPs to become subscriber-centric DSPs.”
How are CSPs undergoing this digital transformation effortlessly and without great expense? It may be counter-intuitive, but the answer is not to invest in new, overly complex subscriber-facing applications from multiple vendors. This approach exacerbates the problem with respect to delayed time-to-value, lack of employee cohesion and increased subscriber confusion. The fastest, most cost-effective way to successfully end the paradox is to look for greater simplicity by finding the lowest common denominator to unify the systems, functions and people CSPs need to deliver an exceptional and personalized subscriber experience. The answer is found in an asset that already exists in every single CSP network today. The answer is DNS—the fundamental building block of the internet.
“The answer is DNS—the fundamental building block of the internet.”
Because DNS is critical to virtually every online request and application, it is an ideal technology to power personalized services and give subscribers greater control over their online experience. CSPs are discovering the true value that DNS provides beyond simple internet look-up functionality, and are now using it to secure the network; offer stronger subscriber protections; create high value, premium offers such as parental controls and content filtering; and enable interactive communications that reach virtually 100% of subscribers in a timely and convenient manner.
“The road to digital transformation is paved with DNS.”
With DNS—a high-performance, extensible and cost-effective service enabler—CSPs are creating greater customer value and speeding time-to-market of new product and service innovations, putting them in a much stronger competitive position against OTT players, as outlined in the Broadband Outlook Report. As you read the report and the survey responses within, I invite you to discover why we at Nominum say: “The road to digital transformation is paved with DNS.”