Selling to telcos in Europe is becoming increasingly challenging given the current European telecommunications landscape: With telecommunications being a prominent sector in Europe, accounting for €56.3 billion of capital expenditure in 2021, there is significant potential to improve connectivity and to cater to the demand for advanced services. However, despite substantial investment, the European telecom market faces challenges due to certain weak and outdated market structures. As a result, the value of European telecoms may be at risk of decline compared to other regions like the U.S. and Japan. This situation has started to lead investors to explore opportunities elsewhere. Simultaneously, as energy prices increase, the emphasis on creating a greener landscape means offering eco-friendly solutions is an essential factor to selling telecoms in Europe.
What does this mean for you as a startup with an eye on Europe?
Well, in a cautious investment climate, your compelling value proposition is crucial for attracting buyers in the European telecom market. Amid financial fluctuations, showcasing expertise, product knowledge, and a proven track record is vital for selling your telcos in Europe. How can your product help European telcos increase customer base or customer stickiness? How can you help them stand out?
With help from our telco expert, Nigel Pollard, we’ve put together some essential strategies to assist you in broadening your telco market presence in Europe. Focus on your telco sales strategy over the slower summer months by assessing what is and isn’t working for you:
Considering the strategies that successful telecommunications giants in Europe have employed could offer valuable insights for shaping your own approach. For instance, the case of large operators such as Germany's Deutsche Telekom and Spain’s Telefonica highlights the significance of prioritizing digital transformation of products and adapting to the changing market dynamics post-pandemic. Both organizations place a strong emphasis on smooth interactions amongst products and services.
Takeaways from this for selling your telcos in Europe include: the importance of customer-centricity, embracing digitalization across all service dimensions, and guaranteeing exceptional network performance that delivers dependable, top-notch connectivity. You might wish to consider incorporating these top digital trends into your services which are shaping the telco industry:
Do you offer a solution in one or more of the areas above? Now is the time to be launching your tech business in Europe.
As the future of telco digital transformation continues to unfold, with the emergence of 6G standards and specifications, staying well-informed about these trends will ensure your competitiveness when it comes to selling telcos in the European market.
We can also take a look at Orange's dedication to sustainable strategies, like their collaboration with SHV Energy – an off-grid energy distributor – to enhance gas delivery routes through IoT optimization. This has resulted in substantial carbon emission reductions and exemplifies Orange's allegiance to supporting clients' sustainability objectives, particularly in the face of energy challenges. Incorporating similar partnerships into your approach can effectively showcase your commitment to clients and enhance your competitive advantage for selling to telcos in Europe.
As we’ve mentioned, European telecommunications companies have faced significant challenges in the past decade due to factors such as inflation and sluggish economic growth. Alongside insights provided by Nigel Pollard, we have highlighted essential strategies to navigate this period effectively. However, what additional obstacles should you remain vigilant about when it comes to selling telecom services in the European market? Spiceworks has laid out some of the challenges you might face and how these can present opportunities to adapt to the evolving telecoms landscape in Europe:
To wrap up, navigating the challenging economic landscape of selling to telecoms in Europe demands strategic planning and seizing opportunities during the summer period to fortify your competitive edge. Addressing regulatory challenges, government influence, sector debt concerns, eco-solutions and leveraging data privacy and AI considerations can position you ahead of the competition. Drawing insights from industry giants like Deutsche Telekom and Telefonica offers valuable lessons for your market strategy, ensuring successful telco sales in the dynamic European market.
Partner with someone who has been there, done that. Sales Force Europe has been building relationships and selling to European telcos since we began in 2003. We are also an official member of the Telecom Council, which helps introduce startups to global telcos and major telecom vendors. In addition, we have been working with the Swisscom Third Party Services program since its inception in 2018.
We continue to have a proven track record selling to telcos in Europe, as well as key telco partnerships around the world. Contact us now to see how we can help with your European expansion to the competitive and compelling telco market.