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Challenges and Considerations When Building a Digital Mobile Operator (DMO) Brand
The Pros and Cons of In-house vs. Third-party Digital Mobile Operator Development
The Case for In-house DMO Development
Pros of In-house DMO Development
Cons of In-house DMO Development
The Case for Partnering with an Experienced DMO Joint Venture (JV) Partner
Pros of Collaborating on a DMO with a Third-party
Cons of Collaborating on a DMO with a Third-party
Picture this:
As a telco CEO, your task is transforming your company into a tech-centric, customer-first company. Your telco has many markets worldwide, and you don’t have enough time to bring new digital experiences to your customers.
One way of quickly introducing new digital products and digital telco experiences is through Digital Mobile Operator (DMO) brands.
DMOs have the added benefit of letting telcos experiment with different target audiences and experiences before sharing the learnings with the rest of the company. With telcos under pressure to move beyond traditional services and into digital-first business models, this decision has long-term financial and operational implications.
Now the question becomes: to Build or to Partner?
The main challenges of producing DMO capabilities are time and expertise. Depending on your telco’s current set of challenges, there are times when it makes sense to build and times when it makes sense to collaborate with a partner.
Telcos of different sizes, locations, and technological maturity have their own challenges. When it comes to considering building in-house capabilities or partnering, these are the most common challenges:
With the most common challenges covered, let’s summarize the pros and cons of building in-house or working with a third party to produce a DMO brand.
You can check out an overview of these comparisons in the graphic below:
In-house development offers more control, brand continuity, lower risks, ownership, and long-term potential cost savings but comes with high upfront costs, longer timelines, and talent challenges.
Partnering with a JV enables faster market entry, reduced financial risk, and access to cutting-edge digital solutions, but at the cost of reduced control, revenue sharing, data security sharing, and potential dependency on the partner.
In-house development works well if you want to have full control over all aspects of your DMO and its associated capabilities. You will not need to rely on third parties and will also keep all the software, expertise, and processes that will pay dividends down the road. However, it requires high upfront capital expenditure and can take years to achieve success.
Collaborating on a DMO with third parties works well if you need a faster time to market and want to mitigate the risks of entering new markets, offers, and target audiences with their experience. However, you must rely on them and cede some control over the brand and process.
Ultimately, your decision will depend on your telco’s strategic priorities, finances, and the speed with which your DMO brand needs to produce results.
If you are looking to fast-track your DMO’s results with minimal risk and proven expertise, a JV with an experienced DMO partner, like Circles, may provide a clearer path to success.
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One of the most immediate and impactful uses of AI is in personalization. Telcos have long recognized that customer experience is more than just a differentiator—it’s central to loyalty and long-term success. AI enables telcos to create customer journeys that are tailored based on actual behavior and preferences.
Insights
15 Oct 2024
Insights
15 Oct 2024
Picture this:
As a telco CEO, your task is transforming your company into a tech-centric, customer-first company. Your telco has many markets worldwide, and you don’t have enough time to bring new digital experiences to your customers.
One way of quickly introducing new digital products and digital telco experiences is through Digital Mobile Operator (DMO) brands.
DMOs have the added benefit of letting telcos experiment with different target audiences and experiences before sharing the learnings with the rest of the company. With telcos under pressure to move beyond traditional services and into digital-first business models, this decision has long-term financial and operational implications.
Now the question becomes: to Build or to Partner?
The main challenges of producing DMO capabilities are time and expertise. Depending on your telco’s current set of challenges, there are times when it makes sense to build and times when it makes sense to collaborate with a partner.
Telcos of different sizes, locations, and technological maturity have their own challenges. When it comes to considering building in-house capabilities or partnering, these are the most common challenges:
With the most common challenges covered, let’s summarize the pros and cons of building in-house or working with a third party to produce a DMO brand.
You can check out an overview of these comparisons in the graphic below:
In-house development offers more control, brand continuity, lower risks, ownership, and long-term potential cost savings but comes with high upfront costs, longer timelines, and talent challenges.
Partnering with a JV enables faster market entry, reduced financial risk, and access to cutting-edge digital solutions, but at the cost of reduced control, revenue sharing, data security sharing, and potential dependency on the partner.
In-house development works well if you want to have full control over all aspects of your DMO and its associated capabilities. You will not need to rely on third parties and will also keep all the software, expertise, and processes that will pay dividends down the road. However, it requires high upfront capital expenditure and can take years to achieve success.
Collaborating on a DMO with third parties works well if you need a faster time to market and want to mitigate the risks of entering new markets, offers, and target audiences with their experience. However, you must rely on them and cede some control over the brand and process.
Ultimately, your decision will depend on your telco’s strategic priorities, finances, and the speed with which your DMO brand needs to produce results.
If you are looking to fast-track your DMO’s results with minimal risk and proven expertise, a JV with an experienced DMO partner, like Circles, may provide a clearer path to success.