CSP Benchmark Report Highlights Telcos’ Growing Use of AI in CX

CSP telco research

The latest TM Forum report on mobile networks, communications service providers and the global mobility landscape highlights several areas for CX improvement, as the market looks to return to growth.

The report, “Telco revenue growth: is it back to the future for CSPs?” (free subscription required) shows bright patches, while legacy market players struggle to generate new revenue streams in the face of stiff competition.

The Customer Relationship Angle

While much of the report focuses on back-end operations (see Orange’s approach to rethinking its digital backbone), there is plenty to chew on when it comes to customer experience, with some real-world examples.

For example, when it comes to revenue diversification, the report notes efforts “need to be based on either a) leveraging customer relationships or b) adding value to telecoms networks.”

“The evidence to date is that strategies that involve leveraging customer relationships to cross-sell new or third-party services has been unsuccessful, particularly in B2C markets. Only those brands which deliver excellent customer experience will have any chance of bucking the trend.”

The Inevitable Rise of AI in CX

It also highlights how AI is delivering cost-savings in customer experience. For example, “(Kenya’s) Safaricom has deployed an AI-assisted product design, configuration and recommendation tool… which has had immediate business benefits and is now feeding into its wider data ecosystem transformation. Intended to create faster, lower-cost design and configuration, and recommend personalized offers.

From Safaricom’s experience, the results to date include:

  • 90% operational efficiency increase through automating service design and delivery
  • 90% reduction in time-tomarket for new B2C offerings
  • 70% reduction in customer complaints related to hourly data bundles
  • Doubled conversion rate on targeted packages through delivery of relevant, personalised customer product offers.

AI is also playing a key role in back office and tech stack operations, delivering fresh efficiencies that legacy providers urgently need.

One area where CSPs can play a greater role in building the customer experience is in the use of AI assistants replacing app usage, (by 25% in 2027 according to reports), assuming they have the infrastructure and a consumer-friendly AI to engage their audience.

There are many more insights across the 43-page report, with B2B and B2C coverage, insights into revenue opportunities, and upcoming technology investments.