It seems as if some of the UK’s telecoms companies are going to be looking more at SME’s to boost their businesses due to the economic situation. As more consumers are feeling the squeeze, companies such as Vodafone and BT are turning to small businesses to try and increase their revenues.
Vodafone launched a massive advertising campaign last year in order to promote One Net. This product offers things such as linking landlines to mobiles. The campaign was a great success and added half a million users to Vodafone’s customer base which is now over two million. Worldwide, Vodafone has 34 million business customers.
Vodafone say that the SME market offers attractive growth opportunities because companies are always looking to manage costs and also improve their mobile technology to improve productivity. Now other companies such as Virgin Media, BT Group and Daisy are joining the race.
Most of Daisy’s SME customers employ an average of eighty staff. This leaves the bigger contracts to companies like Vodafone and BT. Daisy’s recent results showed that the group had cut their pre-tax losses from £10 million to £9 million. This was due to a host of acquisitions in the SME market.
SME’s are, of course, very budget-conscious and give good opportunities for telecoms companies who can combine services for them. Services such as cloud computing, broadband, mobile communications and fixed-line systems can all be combined into one package at a lower cost.
There are still calls for the government to increase the pressure on banks to free up lending to SME’s so as to stimulate growth. The Yell Group is another company who are looking to SME’s to boost revenue. They want to change focus and provide digital services to businesses, so cutting down their reliance on shrinking print revenues.