How Recession and the Empowerment of Consumers Impact the Telecommunications Industry

Abstract

IBM’s most recent global telecommunications consumer survey reveals that the deteriorating economic conditions in many European countries and the empowerment of the consumer exert negative pressure on the business of communications service providers. The results shed light on a budget-conscious, demanding consumer spending an increasing amount of time online, more apt to interface with their friends and family over social networks sites about their services rather than communicate directly with the provider. Many consumers’ are growing less loyal as their expectations rise and as they take advantage of new channels of information. The paper gives recommendations how providers can gain competitive advantage by deepening their consumer insights, encourage interactions and create an emotional connection to their consumers as seen in other industries.