BY ADMIN | JULY 24, 2023

Tackling Telco Troubles by Unlocking the Power of CPaaS

There was a time when telcos ruled the world of communications. From the invention of the first telephone in 1876 right up to the early 1970s, the primary service provided by a telco was phone calls. The advent of the internet in 1974 and the growth of the world wide web saw data become a vital telco offering. Then, in 2007, along came the smartphone and suddenly the world of telecommunications started racing forward at breakneck speed. There have been unprecedented developments in just the last 15 years alone. The sheer pace of change has left telcos struggling to keep up and adapt. From ruling the roost for a century, telcos suddenly find themselves at risk of not just lagging behind, but becoming obsolete.

The zooming growth in telecommunication functionalities and market is posing some arduous challenges for telcos. From technological advancements and increasing data traffic to spectrum allocation and competition, and even over-the-top solutions and regulatory compliance, telcos have a ton of things to deal with to simply stay up-to-date. Just looking at the multitudinous challenges may be enough for the less robust to throw in the towel. Because everything is moving in tandem, it is not even possible to deal with one aspect at a time and this need to address all the challenges together can make them seem insurmountable.

Certainly, telcos cannot do it alone. If they are to regain their dominant status in the world of telecommunications, they need outside support. This is where CPaaS comes into play.

The all-in-one solution

Communications Platform as a Service (or CPaaS as it is commonly known) is a cloud-based omni-channel platform that facilitates the integration of real-time communication features like voice, messaging, video and chatbots. As it is cloud-based, there is no need for the creation or building of hardware. The availability of APIs and pre-built tools means CPaaS is open to both techies and non-techies, making it one of those rare technologies that is easily accessible to many.

As for telcos, CPaaS is the solution to pretty much all their problems. And no, that’s not just hyperbole - it’s the truth, plain and simple. CPaaS has the answer to all the main challenges faced by telcos today.

Technological advancements

Cloud computing, 5G, Internet of Things, virtualization - the list of communications-related technological advancements seems to get longer each day. Supporting these new technologies is not an option, it is a must. Yet, how can telcos be expected to build and upgrade infrastructure to keep up with the super fast developments in technology? Not only is it impractical, it also requires a phenomenal amount of money and cutting-edge technical expertise.

The answer is CPaaS. A telco can offer the gamut of popular communication modes without having to worry about upgrading existing infrastructure or building new hardware. CPaaS has a range of communication application programming interfaces (APIs) and software development kits (SDKs) that cover voice, SMS, video, chat and authentication, and these can be easily integrated into a telco’s existing infrastructure. No forking out huge sums of money. CPaaS is a cost-effective software that enables telcos to immediately broaden their offerings and provide the most advanced communication services to their customers.

Increasing data traffic

Data is the gold of the new millennium. People are constantly online, regardless of whether they are working, learning, watching a movie, listening to music or playing games. The number of people using the internet is going up each day thanks to the proliferation of smartphones and other connected devices. With so much activity online, the demand for data has skyrocketed. Telcos often find themselves hard pressed to deliver large quantities of data while also ensuring network reliability and quality of service.

CPaaS eases this burden on telcos by providing scalable infrastructure capable of handling high volumes of data. Telcos can leverage this infrastructure to ensure seamless delivery of data- intensive services, such as video calling and messaging. In this way they can offer their customers uninterrupted data even during peak times.

Spectrum allocation

If a telco is to provide reliable and high-speed connectivity, it needs access to sufficient spectrum. However, spectrum is tightly regulated, with allocation being subject to stringent regulatory policies. Acquiring additional spectrum is complex and highly competitive. The finite nature of the electromagnetic spectrum, coupled with the number of players in the market, makes it a precious and highly sought after resource. The lack of sufficient spectrum is restrictive for telcos, hindering them from meeting the demands of their customers.

With CPaaS, telcos can offload certain communication services to the internet. This transfer frees up spectrum for crucial applications that are solely dependent on spectrum. CPaaS provides an alternative to spectrum, reducing a telco’s reliance on dedicated spectrum. Thus, telcos can optimize spectrum allocation and efficiently manage their resources.

Competition and market saturation

While competition is an intrinsic part of business, some industries experience significantly greater competition than others. Unfortunately, the telecommunication market is one such field where competition is exceptionally intense. The sheer number of service providers means that there is a tremendous amount of pressure to attract and retain customers. As the market becomes saturated with a proliferation of players, telcos are struggling to find the edge they need to stand out from amongst their rivals.

For a telco to be noticed in a crowded marketplace, they need something that differentiates them from others. They need to position themselves as distinct and unique. One way to do that is to design a line of innovative products and personalized services. Telcos can utilize CPaaS APIs to create unique applications and services like interactive voice response (IVR) systems, two-factor authentication and omnichannel messaging. With these unusual offerings, telcos can attract new customers and retain the patronage of their existing ones.

Over-the-top services

Not only does a telco have to compete with other telcos, it also has to contend with over-the-top (OTT) services. Voice and video calling applications, like WhatsApp, and messaging platforms like Skype are hugely popular the world over. These pose a direct threat to telcos as they offer similar services, often free of charge. These applications and platforms have a host of extra features that are both useful and fun, increasing their appeal among audiences of different ages and demographics. In order to sustain their revenue streams, telcos need to find ways to compete with these OTT services.

CPaaS has everything that OTT services have and more. By utilizing the voice, video and messaging capabilities of CPaaS, telcos can offer their customers feature-rich communication services. These can be seamlessly integrated with a telco’s existing offerings, providing a package that is hard to resist and a sure-fire seller.

Regulatory compliance

Telecommunications regulations are complex. There are laws pertaining to data protection, privacy, net neutrality, security and more, and telcos need to ensure adherence to all these different facets of the regulatory framework. Making things even more complicated is the localized nature of regulations, where laws differ from place to place. Regulatory compliance, while absolutely essential, is both tough and time consuming.

CPaaS enablers work in line with international and local regulatory frameworks, strictly conforming to laws and rules pertaining to data protection, privacy and security. Telcos can rely on the CPaaS enabler’s compliance features and security measures, reducing the compliance burden and enhancing overall security.

Cybersecurity threats

As telecommunications technology advances, so too do the threats to its security. As a repository of vast amounts of customer data, telcos are a sitting target for cyberattacks. In order to protect their customers and their own systems, telcos need a bullet-proof security system. Given how even the smallest security breach can have tremendous negative ramifications, telcos must deploy robust cybersecurity measures that protect their networks, infrastructure and customer information. The cybersecurity system used by telcos must also be sophisticated enough to handle the many different, ever-evolving types of threats.

CPaaS has an in-built security system that actively monitors potential threats and instantly neutralizes them. Sensitive customer data is given an added layer of protection through encryption. Stringent authentication mechanisms control accessibility, preempting potentially dangerous elements from infiltrating the software. CPaaS provides telcos with the multi-layered and rigorous cybersecurity protocol they need to ensure the integrity and confidentiality of communication services.

Leveraging CPaaS

It is plain to see that CPaaS is the key to overcoming the challenges faced by telcos. In order to unlock the full potential of CPaaS, telcos must select a good CPaaS enabler. This means carrying out due diligence on vendors by looking at reliability, success rate and customer testimonials. Assistance with integrating CPaaS into existing systems and workflows, and a customer support team that is available round-the-clock are vital.

Perhaps most importantly, the CPaaS enabler must be affordable. This kind of technology should be economical paving the way for increased revenue. Subscriptions and commissions often cut into profits. Therefore, a CPaaS enabler that functions on a revenue-share model, where telcos can keep earning a consistent income from their clients, would be ideal.

While telcos may be able to debate on which CPaaS functionalities to choose, adopting CPaaS is a foregone conclusion. Beyond just staying relevant, CPaaS opens up new business opportunities and enables telcos to offer bespoke packages to their clients. A telco can gain a massive leg-up to scale the competition and emerge a leader in the industry.