2025 a Year of Reinvention for CSPs and Their Customers

Twenty years ago, the “connectivity” boom began with the internet, which proliferated in every sphere of our lives. Mobile connectivity then picked up the mantle, ensuring 24/7 global communication was available. Complementary technologies—like social media platforms, instant messengers and connected workforce tools—bolstered our ability to connect anytime, anywhere. 

Now, we’re entering the next era of telecom industry transformation, driven by the breakneck advancement of technologies and higher-than-ever expectations from consumers. The industry is going through a metamorphosis as each communications service provider (CSP) examines its role and redefines its identity in the market.

Here’s what I expect to see unfold:

1.    Your next streaming service might be from your bank.
As customer loyalty becomes more essential to the bottom line and more difficult to build and maintain, banks are under pressure to uncover new service offerings that will help them build upon the trust and loyalty they’ve already cultivated with customers. Often, especially in emerging markets where volatility is a concern, banks are a safe and stable constant; customers’ connections to these businesses are as emotional as they are transactional, which cannot always be said for traditional telcos. People trust that their banks will stand the test of time and act in their best interest.

This has led some financial firms into the world of wireless. For example, in the past year, Nubank, Standard Bank and Revolut have all entered the wireless space and set themselves up as mobile virtual network operators (MVNOs). Grocers and other retailers have taken similar steps all over the globe. As more financial organizations realize that their customers are willing to see services expand, we’ll see them push further into new areas of digital connectivity. Streaming content offerings are a natural extension of this diversification strategy. 

However, with the streaming industry bursting with new entrants from Hallmark to Chik-Fil-A, viewers are already overwhelmed with decision fatigue and fragmentation. As banks consider a move to streaming, they should follow consumers’ lead. Focusing on strategic partnerships and bundles that unite content from various outlets will help these firms capitalize on the strong relationships they already have with customers.

2.    The demand for personalization will bring on an MVNO renaissance.
Today’s consumers want to feel seen and known by the brands they frequent, and brands finally have the technology and data capabilities to meet that expectation. What these brands will find when they dig into the details (and what many have already found) is that tailoring your product to niche audience segments gives them more reason to stay loyal and engaged. 
 
The embrace of the MVNO model is a perfect example of this phenomenon in action, and interest in the model will grow to new heights in 2025. The explosion of the MVNO market is as much about personalization as it is anything else. Unlike the monolithic CSPs that have dominated the market, MVNOs are agile enough to specialize in serving niche market segments, offering tailored packages designed to draw in highly targeted groups. 

Mint Mobile, for example, saw early successes with effective advertising targeting younger users, leveraging the star power of its celebrity CEO. Meanwhile, Consumer Cellular has built its business around older subscribers, touting low prices and a focus on exemplary customer service. Red Bull and football clubs like Brazil’s Cruzeiro have even gotten in on the MVNO action, targeting sports lovers through subscriber perks like player meet-and-greets and team merchandise. 

The success of these hyper-targeted MVNOs provides a blueprint for the level of personalization today’s consumers want from the brands they interact with. As brands dig into their data, they will undoubtedly discover the niche groups that might be thriving within their customer bases, helping them reimagine their products and messaging with specificity in mind.

3.    Stopping churn before it happens will be AI’s next battleground. 
As companies realize that it is more cost-effective to keep existing customers than to acquire new ones, retention will be at the center of every business strategy. In turn, we’ll see companies put as much emphasis on backend supports that leverage AI as they have on flashy, end-user solutions. Though AI has utility throughout customer experience (CX) programs, its ability to proactively identify customers at risk of churn will emerge as the technology’s most impactful use case in the new year. 

With churn still a top challenge for telcos, streaming services and other subscription-based businesses, AI tools designed to boost retention will become standard features of CX tech stacks. Generative AI tools that enable CSPs to get ahead of customer concerns with compelling offers or white-glove experiences will help reaffirm emotional connections. If these AI tools can extend a customer relationship by even a few months, the investment will have paid for itself. 

Ultimately, 2025 will be the year when brands are challenged to prioritize connection over connectivity, fostering deeper, more impactful post-purchase relationships that benefit both customers and organizations alike. It will be the year that we rediscover the foundation of customer loyalty, recognizing that it’s not just about the services you provide but the quality of the relationships you cultivate. Those that succeed will be the ones who listen to their customers, understand their desires and deliver meaningful experiences before their customers even know, themselves, what they’re looking for. 

Picture Courtesy: Pixabay.com