In recent years, emerging economies like Africa and Latin America have become mobile-first and quickly adopted digital transformation. The digital transformation market is growing so fast that it is projected to reach $207.87 billion by 2032 in Latin America.

Today, everything—from banking to retail and food delivery—is available to customers at the tap of a fingertip. These digital customers expect omnichannel engagement and personalized experiences from the companies they support. Simultaneously, companies have realized that to thrive in a competitive digital market, they must offer experiences alongside products.

This is why companies have started using Communication Platforms as a Service (CPaaS) to unify their customer engagement strategy. CPaaS helps them meet these demands and deliver seamless customer experiences across all channels.

We know that CPaaS is a cloud-based platform that allows companies to integrate communication capabilities such as SMS, voice, and messaging apps into their applications without the cost and maintenance of developing their own solutions. There are various use cases that demonstrate the potential of CPaaS, which we have discussed separately.

In this blog, we will specifically address why telcos should consider becoming CPaaS providers.

Why Should Telcos Become CPaaS Providers?

Telcos are ideally positioned to become CPaaS solution providers to enterprises, and now is the right time to do so.

Smartphone penetration has increased significantly in developing economies. According to Statista, there were over 415 million smartphone subscriptions in Sub-Saharan Africa in 2022, which is expected to reach 689 million by 2028. Enterprises have already started integrating CPaaS with instant messaging apps like WhatsApp and SMS to engage with mobile-first customers on their preferred channels.

Secondly, with most customers using channels other than traditional voice calls, telcos must seriously consider other revenue-generating options. Telcos are struggling to earn revenue due to intense competition, high customer churn, and rapid technological advancements. By offering CPaaS platforms, telcos can generate profits through new channels and stay ahead of the competition.

Fortunately, telcos already have robust network infrastructures, such as fiber optic networks, that can be optimally monetized by offering a new set of services.

It is no surprise that many telcos, like Airtel, have begun delivering CPaaS solutions to disrupt industries such as banking, e-commerce, and travel.

Six Factors To Consider When Choosing A CPaaS Partner

Telcos could face several challenges in launching CPaaS offerings, such as high development and research costs, a shortage of skilled personnel to create and maintain platforms, and a slow time to market due to the size and complexity of development.

Choosing the right CPaaS partner can help telcos overcome these challenges. However, since CPaaS is still a relatively niche technology for telcos, selecting the right partner from numerous choices can be tricky. Consider the following six factors when choosing a CPaaS partner:

1. Implementation and Adoption

Choose a CPaaS partner whose platform does not have a steep learning curve. The platform must be easy to implement and support commonly used languages for integrating communication APIs. Additionally, ensure that the platform is user-friendly, offering an intuitive interface and features that enable enterprise clients to maintain unified communication with their customers. Check the implementation and support credentials of the CPaaS solution provider.

2. API Integration

CPaaS platforms integrate various communication APIs, such as email, push notifications, SMS, and WhatsApp, to meet the evolving needs of enterprise users. Choose a partner who can seamlessly integrate APIs with the maximum number of existing platforms and applications. Ensure the platform offers flexibility to add more communication channels as needs change, and integrates with third-party platforms like e-commerce and CRM solutions. The partner should also provide API and SDK tools to enable telcos to add more APIs in the future and build a robust communication experience for enterprises.

3. Support

Select a CPaaS partner who offers prompt and reliable support when issues arise. Ensure that the partner provides dedicated, omnichannel support to telcos across all channels. Check the provider’s average response time, the channels they use for support, and whether they have a well-established onboarding process to help telcos acclimate to the platform, ensuring a smooth experience for enterprise clients.

4. Security

With vast amounts of data shared over the internet through voice calls and messages, security is paramount. When selecting a CPaaS partner, ensure they have the expertise and certifications to protect sensitive customer data from breaches and vulnerabilities. They should comply with industry standards like HIPAA, GDPR, ISO27001, or SOC2. Also, ensure they offer features like end-to-end encryption and enterprise-level security. Prioritizing security will help telcos build trust with enterprise clients and safeguard their reputations.

5. Scalability

In today’s fast-paced environment, enterprises expect scalable and flexible CPaaS platforms. Choose a CPaaS partner that offers scalability as a built-in feature. Ensure they provide direct carrier connections to deliver communication across multiple channels and have both public and private cloud infrastructure. Supporting omnichannel communication, including voice and SMS, will allow telcos to offer adaptable CPaaS platforms and meet the evolving needs of their enterprise clients.

6. Cost

Before investing, compare the pricing plans and hidden charges of all CPaaS partners. Ideally, select a partner that offers flexible billing options, such as usage-based or pay-as-you-go pricing. This will help telcos reduce costs and maximize ROI.

How Can Prudent Tech Help Telcos Get Started?

Now is the ideal time for telcos to monetize their infrastructure and capabilities by delivering CPaaS solutions to small and medium enterprises (SMEs) in emerging markets. This will enable them to expand their business and unlock new revenue streams. While there are challenges—such as the complexities and costs involved in developing and maintaining CPaaS platforms—telcos can easily overcome them by collaborating with the right CPaaS partner.

At Prudent Tech, we help telcos capitalize on the growing potential of CPaaS and become part of their enterprise clients' business operations. We were recently recognized as one of the top 20 CPaaS players to watch in 2024 by Channel Futures.

We empower telcos to become full-stack communication solution providers who deliver omnichannel experiences to their enterprise clients. Our no-code/low-code platform, designed by specialists, enables telcos to create value for enterprises and enhance customer experiences. Prudent’s proprietary IPRs ensure seamless, efficient, and cost-effective integration with OSS, BSS, and other existing communication applications, allowing telcos to launch services ahead of the competition. Furthermore, our platform is white-labeled, enabling telcos to use their own branding while offering CPaaS platforms to enterprise clients. This will enrich their product portfolio and boost profitability.

To learn more about our CPaaS platforms, contact us.