Telco to Techco: Six tenets for success
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This report leverages findings from an extensive research programme conducted in EMEA, including interviews with eight different CSPs and a survey with 54 responses from CSPs across the region. The research explored the progress of telcos within EMEA as they adopt techco practices.
Description
Format: PDF file
Pages: 39 pages Author: Tim Otto Publication Date: August 2023Table of Contents
- Foreword
- Executive Summary
- Six tenets telcos must consider to pursue a techco transformation
- Introduction
- The enterprise customer: Potential growth for techcos
- Slowing of consumer profit growth has led telcos to explore the enterprise opportunity
- Telcos lack the prerequisite skills to properly target these customers
- Complex and expensive networks limit the profitability of consumer products
- Revenue increases as a result of 5G penetration are not enough to drive growth of the telco as a whole
- Techcos will develop effective customer feedback loops and build only what is demanded
- Changing the organisational model of a telco
- Becoming a techco requires a more horizontal structure with fluid roles
- Cross-functional teams with software-first KPIs will lead telcos into the new world
- Sustainability: No longer a nice to have?
- To reach net-zero targets, telcos must embed sustainability across the organisation
- Collaboration will be instrumental to accelerate sustainability across the industry
- Cloud native: Technology or mindset?
- Network-as-a-service will enable techcos to offer transformative products
- Internal automation and industry collaboration are critical steps to true cloud native NaaS
- Ecosystem participation to develop new expertise
- Techcos will leverage the skills of others through diverse ecosystems of partners
- ISVs will bring applications and expertise to telcos developing their sector-specific capabilities
- Telcos can leverage their trusted local presence to provide value and assurance in an open ecosystem
- Conclusions and recommendations
- Enterprise customer recommendations
- Consumer customer recommendations
- Organisational recommendations
- Sustainability recommendations
- Cloud native recommendations
- Ecosystem recommendations
Table of Figures
- Figure 1: Overview of our transformation index metrics
- Figure 2: Overall output from STL Partners Telco to Techco benchmarking index
- Figure 3: Telco revenues are growing at a much slower rate compared to the global internet giants
- Figure 4: Six tenets for a successful techco transformation
- Figure 5: Telco revenues, 2019-2022, trillions of US dollars
- Figure 6: Question – What is the primary business objective for your 5G and edge strategy?
- Figure 7: Question – Which areas do you think will drive this revenue growth?
- Figure 8: Output from the STL Partners, Telco to Techco benchmarking index (consumer customer metrics)
- Figure 9: 5G penetration correlates with revenue growth, stemming from premium consumer bundles
- Figure 10: Telcos are undecided as to their organisation’s ability to innovate and understand the customer
- Figure 11: Hyperscaler NPS vs. leading telco NPS
- Figure 12: Question – Which steps do you think your organisation should prioritise to better facilitate digital transformation in the next 3 years?
- Figure 13: Output from the STL Partners, Telco to Techco benchmarking index (Organisational model metrics)
- Figure 14: A leading telco has adopted DORA metrics as key KPIs, prioritising agility and speed over reliability
- Figure 15: Output from STL Partners Telco to Techco benchmarking index (sustainability metrics)
- Figure 16: Question – In which area should your organisation prioritise higher levels of automation?
- Figure 17: Global mobile network API revenue opportunity
- Figure 18: Techcos will leverage open ecosystems for greater innovation and competition
Technologies and industry terms referenced include: 5G, Airtel, alibaba, apple, BT, CI/CD pipelines, cloud-native, EcoSystem, edge strategy, EMEA, google, hyperscaler NPS, ISV, KPN, Meta, network APIs, STC, Swisscom, techco, Telco, telco NPS, telco to techco, Telefonica, tencent, Vodafone