The European telecommunications market, characterized by its diverse landscape and the dominance of a few major players, presents unique challenges and opportunities for businesses seeking to penetrate this sector. Understanding the nuances of selling to European telco companies is crucial for success. In this blog we’ll run through the key trends and popular services shaping the European telco market right now, as well as a guide on how you can infiltrate this market.
Paul Dinsmore, Sales Force Europe partner’s with over 30 years experience in the telco industry, says companies looking to break into the telco market must have services that are attractive to payment organizations, financial services organizations and mobile money companies. This would include services such as billing platforms, customer relationship platforms and customer experience management platforms. He adds that the beauty of selling software, unlike hardware, is that most of it can be sold and set up across borders. This means that you may not need to have a business presence in the country you are expanding to, due to being able to host most things in the cloud. You still need a local sales and technical support present though.
The rollout of 5G networks is driving significant investments and creating new opportunities for businesses offering solutions in areas such as IoT (the Internet of Things), augmented reality and autonomous vehicles. Europe has deep 5G penetration and follows only China, South Korea and the U.S. in adoption levels. Its successor 6G, while still in its early stages, is expected to revolutionize connectivity and unlock even more innovative applications.
Because of the increase of e-wallets and online payment systems, the need for telecom cybersecurity has increased too. There is great opportunity for those selling this protection for mobile phone applications, both in Europe and across the world.
Dinsmore adds that grey routes within the telco industry also pose a significant threat to revenue and security. These unauthorized routes, often used for international calling or data transfer, bypass legitimate network channels and can lead to revenue leakage, quality of service degradation, and increased vulnerability to cyberattacks. To address this issue, telco companies require robust cybersecurity. Companies who can offer this advanced threat detection, prevention and response capabilities to help telcos protect their networks, mitigate revenue loss, and ensure the integrity of their services will experience great opportunities in their European expansion journey.
IoT is a rapidly growing market, with telcos playing a crucial role in providing connectivity and infrastructure. Businesses offering IoT solutions, platforms, or services have significant potential in the European telco market.
The adoption of sensors, connected devices and automation in manufacturing and other industries (Industry 3.0) is creating demand for advanced communication and data management solutions. Telco companies are well-positioned to capitalize on this trend. We see our international clients finding welcome European leads.
While there is some overlap, most telco Tier 1 providers are found within country boundaries. Some are even 100 years old! You need relationships within those companies in order to stand a chance. Some of the biggest European telco providers include:
The report "Open Innovation with Start-Ups" emphasizes the need for telco operators to adopt open innovation strategies to collaborate with technology startups. This shift is crucial as the industry moves away from a sole focus on raw computing power and technology breakthroughs. By partnering with startups, telcos can benefit from their flexibility, consumer-centric approach, and potential for disruptive innovation. The paper suggests that telcos should prioritize innovation in their business plans, proactively seek partnerships, leverage their scale and scope while allowing start-ups autonomy, and establish clear shared objectives for sustainable collaborations.
Selling to telco companies often requires a highly targeted, account-based marketing approach. These organizations have complex decision-making processes involving multiple stakeholders, making it essential to build strong relationships and tailor your sales strategies to specific accounts.
Sales Force Europe's deep understanding of the European telco market and established relationships can be invaluable in navigating this complex landscape. Our team of experienced sales professionals can provide guidance on building relationships with key decision-makers, tailoring your messaging to specific accounts, and overcoming common challenges in the telco industry.
When entering the European telco market, it's often advisable to start with smaller, Tier 2 and 3 operators. These companies may be more receptive to new solutions and can serve as references for larger, Tier 1 players. Proving your value in these smaller organizations can open doors to the more established telco giants.
According to Nigel Eastwood, investor and non-executive director at Sunday Times Tech Track, the increasing prevalence of startup ecosystems beyond Silicon Valley highlights the challenges faced by entrepreneurs in scaling their businesses globally. He emphasizes the value of collaborative initiatives, such as the Go Ignite alliance formed by Singtel, Orange, Deutsche Telekom and Telefónica, in addressing these challenges.
The alliance aims to connect startups across different regions and provide them with resources to scale their businesses. By pooling their customer base, expertise, and networks, the alliance offers startups access to new markets, mentorship, investment opportunities and a platform to showcase their innovations.
Eastwood highlights the potential of such collaborations to help tech startups overcome market barriers and achieve global growth. He emphasizes the importance of similar initiatives in supporting entrepreneurs and fostering innovation in various regions.
Selling to European telco companies requires a strategic approach that combines account-based marketing, strong relationships, and a deep understanding of industry trends. By focusing on emerging technologies like 5G, IoT, and Industry 3.0, businesses can identify opportunities to provide innovative solutions and establish a strong foothold in this competitive market. Does your solution align with any of the aforementioned areas? If so, then now is the ideal time to launch your tech business in Europe. Get in touch if you’d like us to help make your expansion journey a little easier.
