Cloud technology gives telcos a one-off chance to do something truly smart
Astronomy enthusiasts are attuned to rare opportunities. Solar eclipses like the one crossing North America on 8 April are events to seize with both hands. Halley’s Comet is scheduled to approach earth in 2061 for the first time in 75 years. Those hoping to see Venus transit the sun will need to wait a while longer: it is due in 2117.
Uncommon as they are, these celestial movements do happen more than once. In business, on the other hand — especially the saturated telecoms subscription business — growth opportunities can be ephemeral. The advent of the iPhone in 2007 was like a comet crashing to earth, upending the industry. As well as resetting the game for carriers, it ultimately commoditized their offering, forcing them all to invest in bigger, faster networks. Since then, differentiation beyond price has proved elusive, and winning customers over from a rival network nigh-on impossible. In the unforgiving world of subscriptions, once a customer mates, it tends to be for life.
The celestial effects of the smartphone haven’t yet been felt by all
Yet not everyone has felt the impact of the smartphone. For those of us who own one, it is hard to imagine that there are people who go through life without them. We take their utility for granted to the extent that unplugging for the weekend via an expensive designer ‘dumb phone’ has become a luxury lifestyle statement. For the close to a billion people around the world who exist below the poverty line, by contrast, internet access remains a distant reality. Even the most ‘affordable’ smartphones are out of reach. In India alone, there are still over 250–300 million 2G customers using basic feature phones — the alternative for those who cannot afford smartphones to remain connected and perform essential tasks such as mobile money transfers.
For internet service providers, they represent the last untapped market. And they are about to grow larger on the horizon.
The move from no phone to feature phone can change lives — to a degree. But carriers are undergoing a fundamental shift in vision and strategy. As countries look to embark on a move to 4G as standard that will phase out 2G altogether, it is imperative for telco brands to engage this segment of the population and ensure they are not left behind once again. The time has arrived to provide them with the internet services that can be truly transformative, and in the process build lifetime loyalty.
The Cloud Phone comet is about to strike in telecommunications
Cloud Phone technology is akin to the “comet” of the smartphone that struck 17 years ago. It points the way towards empowering an entirely new consumer segment from the ground up. Unlike traditional feature phones that are limited to voice calls and basic text communication, it unlocks a world of possibilities for users. For carriers, it is a watershed moment.
Simply put, the Cloud Phone puts internet-based services and content within reach via a feature phone handset. As millions begin to engage with previously inaccessible platforms for the first time, data consumption will surge. The transition to Cloud Phone represents a broader evolution in telecommunications: a departure from legacy systems towards more advanced, data-driven networks. Crucially, the cloud circumvents the challenge of limited local storage capacity on feature phones, paving the way for new services and experiences.
The implications of this shift in the developing world are vast for carriers operating in highly saturated markets. The influx of the cloud-enabled next billion internet users stands to drive demand for data and digital services, enhance network efficiency, and open new avenues to generate revenue. For carriers, the sun is high in the sky. Adapting to this technology means acting decisively to support a connected future for those who urgently need it — and securing growth figures that are worth talking about. Missing out on a rare planetary phenomenon does not mean the end of the world. For carriers, passing up the chance to connect the next billion consumers just might.
