Diversification: the key for operators’ new services.

15 December, 2021

It is clear that competitiveness in the telecom market is increasingly higher. This may be why telecom operators are diversifying their business since some time ago, integrating as their products the commercialization of alarms, energy, insurance, banking, and a long etc., beyond generating income from telephony, fibre or pay television, which until now was a ‘conventional’ telecommunications operator.

Use of their infrastructures.

According to experts, big companies did not know how to get income from their main asset: infrastructures.

That is, given that the market is saturated, apart from obtaining income from the change of operator of consumers, the turnover increase consists in offering other tangent products and services together with the main business that give added value, with the advantage of being able to rely on their platforms, existing clients and offer payment facilities with the monthly payment by unifying it in a sole bill.

Diversification: the key for operators’ new services.

Operators’ diversification of services.

Although there are more cases, we will take as a way of an example three operators: Movistar, MásMóvil Group and Orange.

– Movistar.

Movistar is a clear example. It has been expanding its horizons and, under its brand, offers alarms, online loans and telemedicine services.

In addition, it recently unveiled its new home insurance service, under the umbrella of the Telefónica Seguros group insurer, and in collaboration with leaders in the sector such as Santalucía and BBVA Allianz.

– MásMóvil Group.

MásMóvil Group may be the one who bet the most for the energy marketing. At the beginning of this year, the group made effective the purchase of Lucera, a marketer of electricity from renewable sources. Moreover, three companies of the group offer this service EnergyGO (Yoigo), MásMóvil Energía and Pepeenergy.

At the beginning of this December, Yoigo, a company of the group, announced the launch of medical insurance in collaboration with the private medical insurer DKV Salud.

– Orange.

Now, having an account at Orange Bank and carrying out any operation with any other bank is possible.

Orange Bank has been in the market for two years, although it started with the primary and core task of financing mobile devices. Today, it has more than 135 000 customers in Spain.

Competitors.

There are more operators and services apart from the ones mentioned as a way of an example, and we will know new ones. However, we guess that whey will finally compete for these services too. To give an example, although it is not confirmed and there are also rumours, it seems that Vodafone also wants to have its own energy market. They have already filed Vodafone Energía at the Registry for Companies, Patents and Trademarks, which will result in a new competitor for the companies of MásMóvil Group, which offer this service too.