Page 5 - Telecom Reseller August-September 2016

August/September 2016
JIRBANDEY
telecommunication organizations, there are four major areas we can speculate about, and these are the ones we’ll be discussing here. First will be major providers considering moving their European headquarters outside of UK.
We can draw from Mr. Colao, Vodafone’s CEO hinting that FTSE 100 companies such
as Vodafone could move their headquarters if the free movement of people and capital was restricted. Freedom of movement may become more regulated in a UK outside of EU, but will movement of capital will ever become restrictive enough for companies such as Vodafone to consider relocating their headquarters?
Second is international calls. On the back of Britain leaving the EU, we might see another Scottish referendum in order for the Scots to leave the UK and apply for an individual EU membership. In basic terms, a phone call from Scotland to England would then count as an international call and the new costs imposed on consumers.
Next area of concern is roaming charges. e European Commission recently ruled in favor
of abolishing roaming charges by June 2017. Companies like Vodafone and ree have already been rolling this o er to their customers. By the time UK has triggered Article 50 and spent the next two years negotiating a deal to exit the EU, we might see roaming charges snapped back
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NOW, I WANT TO TALK A LITTLE MORE ABOUT WHY. HERE ARE FOUR BIG REASONS.
REASON 1: Customers crave a connection to simpler times. Life is so frantic and complicated, due in large part to technology. And people cherish their technology tools because they let us attain goods and services quickly and e ciently. But when we need to get on the phone with a person, or when we are face-to-face, we want to know we’re talking to a human being who has our interests at heart—not a machine. We long for the days when the shopkeeper would open the store a er hours for a customer in need.
A culture of compassion and empathy still has to come through in your person-to-person interactions and as much as possible in your technology-aided service interactions such
as live chat. ere really is something about communicating a smile during face-to-face interaction or conveying that on the phone or during online interaction.
REASON 2: Customers nd comfort in “the familiar”. No one likes to spend their valuable time dumping less than stellar companies only to start all over again in search for better ones. People enjoy predictable companies they’re used to and comfortable with—as long as those companies deliver great service. (For example, I still go to my doctor in Colorado for second opinions—and I live in Florida.)
Find ways to remind your customer how far back you go and that you strive to foster a lasting relationship. Whether that means logging notes about their particular needs in your customer relationship management database so you
can follow up or o er “anniversary” discounts honoring their patronage, you can earn their loyalty and keep them coming back by treating them like they genuinely matter.
REASON 3: Old school service ts with the burgeoning artisanal movement happening
now. For many years there’s been a lot of mass- produced junk out there. But more and more, shoppers are choosing products and services that are unique, customized labors of love. Look at the cra beer craze. For generations in the US people drank pilsner—they were conditioned to do
into place for UK customers, travelling through Europe.
Regarding the fourth area of change, according to Bird & Bird, following Brexit, the UK is not going to be subject to decisions and regulations set by the Commission on spectrum allocations and use across the EU. Most likely UK will cooperate with member states and neighboring countries, however regulatory divergence may rise between UK and EU in respect of regulations of OTT services. UK may take a more liberal approach on these services that could help add to stagnant revenue streams of carriers and Telcos in west Europe.
For the year ended 31 March 2016, Vodafone reported organic group revenue growth of 2.3%. Most of this growth came from outside the company’s European area of operations. Vodafone’s service revenue from its African,
Middle Eastern and Asia-Paci c operations grew at 6.9% year-on-year. European service revenue shrank by 0.6% on an organic basis for the period and UK service revenue contracted by 0.3% for the period.
TELCOS ARE NOT BREXIT READY
In a recent poll by Pinsent Masons, an international law rm, has highlighted that only 35% of telecommunication rms polled have a clear plan for dealing with impact of UK leaving EU.
In addition a recent survey by TechUK of 277 technology business leaders found 70% were
in favor of staying in the EU, with only 15% supporting a Brexit. More than 90% of those in favor of leaving the EU said it would give the UK more exibility in a global economy, and 64% believed it would make the UK more globally
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competitive. Here we can argue that the main disadvantages of staying in the EU would be around red tapes and regulations enforced by EU on UK innovation and growth in these areas.
To summarize, nearly in each area where a door is closed by UK leaving the EU, a new one may open through opportunity, innovation
and investment. A lot will come down to the negotiations in the next two years, who the Conservative party will nominate to lead the country through these negotiations and how quickly the nation can unify and back the majority decision in the referendum. As roaming and spectrum rules could become British, it is very likely that they will mirror the European approach in these instances and we won’t see any immediate bene ts from a new ‘free market’ that is to be the new UK. ■
When you have to be right
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