CDTM Trendreport: Customer Interaction in the Telco Industry

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axono Value Proposition Axono is a mesh network with the goal to improve the comAxono is a mesh network with the goal to improve the communication infrastructure. The core value propositions are the increase in mobile data coverage, higher network stability, and the possibility of enabling smart device communication. Mobile Data Coverage: Coverage of mobile networks is almost without connectivity gaps in metropolitan areas. This is different in rural areas, due to slow and unreliable connectivity. A mesh network can bridge connectivity gaps and increase network coverage. For example, customers in rural areas with poor connectivity can connect through a variety of devices to reach the internet access point. Urban areas with network congestions, e.g. public transportation or sealed buildings, can also benefit from a mesh network. The network delivers mobile coverage to low connectivity areas all over the city. Within this proposition, the value lies in an improved connectivity and therefore a higher customer satisfaction. Network Stability: Natural disasters, technical failures or even a high amount of network traffic can lead to network outages. This is a worst-case scenario for telco providers and their customers, who are dependent on their service. Network stability increases with the ability of a mesh network to simultaneously transfer data between interconnected devices. The most important use case in these terms is to solve network capacity problems by providing a different channel. During crowded events, when the network is congested, the mesh network releases the existing infrastructure at low cost. Complications will not affect the overall service in the same extent compared to a network without axono. This leads to higher levels of customer satisfaction and loyalty.

Customer Relationships Seamless Integration: As a first step, current customers of affiliated telco providers will automatically turn into users of the mesh network via an update of the provider’s app on their devices. Telco companies will slightly change their products due to the mesh network. Customers will not only be one end of the data cycle, but turn into transmitters. Because axono will reduce the amount and density of traditional connectivity stations, customers who are not part of the mesh network will experience a decrease of quality service over time. By utilizing the existing customer base, large telco providers can instantly reach the critical mass of users. At first, Android smartphones will be part of the network, since Apple restrict apps to change fundamental services of the system [436]. By the time the eSIM technology is further developed, axono plans to use this easy access to allow devices which do not have the app installed to become part of the mesh network. By adjusting the eSIM protocol, all customers of the affiliated telco partner can now be instantly turned into mesh network users and use its full potential. As the last step, axono is going to update the current hardware and routers to offer an even better network quality and to relieve mobile devices utilization. Developer Support for SDK: Axono offers an SDK for developers to use the full potential of the mesh network. Third party applications will be an important differentiator to the traditional network. Therefore, supporting the development is important, since these applicationsy are going to be beneficial for the network.

Smart Device Communication: For customers, a mesh network generates value by enabling a new generation of applications. Axono can interconnect devices in industries such as connected cars, smart cities and homes easily. Therefore, applications built on this ability such as Peer-to-Peer messaging, Car-to-Car communication, and traffic monitoring are possible. This interconnection also enables real-time insights and network monitoring. For example, the interconnection of cars enables smart monitoring of the traffic system within a city. In conclusion, many businesses will benefit from integrating their applications into a mesh network.

Customer Acquisition: Building traditional infrastructure to connect every person and region with the same speed and reliability has always been considered too expensive for one provider. Axono will offer the people the same quality as people in the city. However, the mesh network requires a critical number of devices being part of the network in certain areas to run effectively. Winning sufficient customers in each area will be crucial for the technology. Targeting the first few customers in each remote area requires a lot of marketing efforts. Additionally, axono needs to win these new potential customers partially from competitors, which already offer connectivity in remote areas.

Channels To deliver axono’s value proposition to the user, it must be visibly communicated, sold, and distributed to its four different customer segments. Emotional Targeting of End-Customers: For end-customers in rural as well as urban areas, connectivity in situations of lacking or congested infrastructure, outages or natural disasters is axono’s key value proposition. This must be clearly communicated to the end-customer. This means, that axono must engage in intense and emotional media campaigns to communicate the value to the customer. This is important for the acquisition of new customers and lowering churn rates. Communication channels should include stores, web- and mobile applications, and third parties promoting the product through their channels. Selling and Distributing to the End-Customer: For end-customers, access to axono’s mesh network is provided by regular mobile network contracts. Axono can then handle sales through conventional mobile network providers’ online and offline sales channels. These include stores, websites, and mobile applications. Private customers will need to download an application on their mobile device in order to get access to the network. Technical Targeting of Businesses and Developers: It is important to also reach the two equally important customer groups of businesses and mesh application developers. Axono can reach further awareness through technical tradeshows, conferences, and business-to-business marketing initiatives, such as direct mailing and trade fair campaigns.

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