Making big beautiful: Multinational operators need the telco cloud

£1,000.00 excl VAT

Multinational operators have not been effectively harnessing their size and cross-country footprint. To create attractive economies of scale, they need to adopt a Telco Cloud model. Through a more common infrastructure and an innovation model which is sensibly calibrated across OpCos, large telcos will become more efficient and innovative.


Format: PDF filePages: 25 pagesCharts: 15Author: Jonas Strobel, Cosimo Paulucci de CalboliPublication Date: December 2017

Table of Contents

  • Executive Summary
  • Multinational telcos have struggled to create economies of scale
  • A Telco Cloud strategy can deliver scale economies for multinational operators
  • Introduction – Economies of scale in telecoms
  • International expansion has delivered a global footprint for some telcos
  • Telcos’ (economies of) scale in perspective
  • Multinational telcos need to revisit their approach to creating economies of scale
  • The dilemma of multinational telcos – can Telco Cloud help overcome it?
  • Telco Cloud: a brave new world?
  • The cost problem: multinational telcos need to create synergies across markets
  • The revenue problem: multinationals need to calibrate the right innovation model across markets
  • The traditional Opco-driven innovation has inherent problems
  • Centralisation of innovation isn’t the answer either
  • What is the right model for telcos?
  • Conclusions

Table of Figure

  • Figure 1: Vodafone’s international expansion since 2000 – increasing global footprint with a preference for majority stakes
  • Figure 2: Some telcos are big – but they are unable to create the same network effects as the internet giants
  • Figure 3: European giants struggle to create economies of scale
  • Figure 4: Relative scale produces higher margins for single-country operators
  • Figure 5: Telcos’ growth performance is flattening out (Sample of sixty-eight operators)
  • Figure 6: Significant revenue growth is imperative to avoid decline of already inadequate operating margins (Illustrative 5-year projection)
  • Figure 7: There is a variety of barriers to create cross-country synergies
  • Figure 8: Telco cloud benefits
  • Figure 9: Telco Cloud could boost revenues 10.5% higher than the base case
  • Figure 10: Collapsing IT and network into a common, virtualised platform
  • Figure 11: Cost savings from Telco Cloud are expected to be significant
  • Figure 12: Telcos’ R&D expenditure is worryingly low
  • Figure 13: Telcos’ traditional OpCo-driven innovation model
  • Figure 14: Netflix – transition to a flexible microservices architecture to enable both global and local innovation
  • Figure 15: The Telco Cloud-enabled distributed innovation model

Technologies and industry terms referenced include: costs, facebook, google, growth, Innovation, Netflix, opco, R&D, scale, telco cloud