This Strategy Report plots the transformational path that telcos need to follow to achieve the $375Bn p.a. 'Telco 2.0' opportunities. It describes the six growth opportunity areas for the Telecoms industry, identifies new categories of operators, benchmarks the primary strategies needed by each to evolve and thrive in the new industry environment, and highlights leading examples of telco business model innovation. It has 284 pages, including a 13 page Executive Summary and a detailed index. (April 2011, Telco 2.0 Transformation Stream) The Roadmap to new Telco 2.0 Business Models
$375Bn per annum Growth or Brutal Retrenchment? Which route will Telcos take?
Over the last three years, the Telco 2.0 Initiative has identified new business model growth opportunities for telcos of $375Bn p.a. in mature markets alone (see the ‘$125Bn Telco 2.0 ‘Two-Sided’ Market Opportunity’ and ‘New Mobile, Fixed and Wholesale Broadband Business Models’ Strategy Reports). In that time, most of the major operators have started to integrate elements of Telco 2.0 thinking into their strategic plans and some have begun to communicate these to investors.
But, as they struggle with the harsh realities of the seismic shift from being predominantly voice-centric to data-centric businesses, telcos now find themselves:
- Facing rapidly changing consumer behaviours and powerful new types of competitors;
- Investing heavily in infrastructure, without a clear payback;
- Operating under less benign regulatory environments, which constrain their actions;
- Being milked for dividends by shareholders, unable to invest in innovation.
Pressures on the Telecoms Business Model
Source: The Roadmap to New Telco 2.0 Business Models
As a result, far from yet realising the innovative growth potential we identified, many telcos around the world seem challenged to make the bold moves needed to make their business models sustainable, leaving them facing retrenchment and potentially ultimately utility status, while other players in the digital economy prosper.
In our new 284 page strategy report – ‘The Roadmap to Telco 2.0 Business Models’ – we describe the transformational path the telecoms industry needs to take to carve out a more valuable role in the evolving ‘digital economy’. Based on the output from 5 intensive senior executive ‘brainstorms’ attended by over 1000 industry leaders, detailed analysis of the needs of ‘upstream’ industries and ‘downstream’ end users markets, and with the input from members and partners of the Telco 2.0 Initiative from across the world, the report specifically describes:
- A new ‘Telco 2.0 Opportunity Framework’ for planning revenue growth;
- The critical changes needed to telco innovation processes;
- The strategic priorities and options for different types of telcos in different markets;
- Best practice case studies of business model innovation.
The ‘Roadmap’ Report Builds on Telco 2.0’s Original ‘Two-Sided’ Telecoms Business Model
Who should read this report?
The report is for strategy decision makers and influences across the TMT (Telecoms, Media and Technology) sector. In particular, CxOs, Strategists, Technologists, Marketers, Product Managers, and Legal and Regulatory leaders in telecoms operators, vendors, consultants, and analyst companies. It will also be valuable to those managing or considering medium to long-term investment in the telecoms and adjacent industries, and to regulators and legislators.
It provides fresh, creative ideas to:
Grow revenues beyond current projections by:
- Protecting revenues from existing customers;
- Extending services to new customers;
- Generating new service offering and revenues.
Stay relevant with customers through:
- A broader range of services and offers;
- More personalised services;
- Greater interaction with customers.
Evolve business models by:
- Moving from a one-sided to a two-sided business model;
- Generating cross-platform network effects – between service providers and customers;
- Exploiting existing latent assets, skills and relationships.
The Six Telco 2.0 Opportunity Areas
Source: The Roadmap to New Telco 2.0 Business Models
What are the Key Questions the Report Answers?
- Where should your company be investing for growth?
- What is ‘best practice’ in telecoms Telco 2.0 business model innovation and how does your company compare to it?
- Which additional strategies should you consider, and which should you avoid?
- What are the key emerging trends to monitor?
- What actions are required in the areas of value proposition, technology, value / partner network, and finances?
For Vendors and Partners:
- How to segment telecoms operators?
- How well does your offering support Telco 2.0 strategies and transformation needs in your key customers?
- What are the most attractive new areas in which you could support telcos in business model innovation?
For Investors and Regulators:
- What are and will be the main new categories of telcos/CSPs?
- What are the principle opportunity areas for operators?
- What are and will be operator’s main strategic considerations with respect to new business models?
- What are the major regulatory considerations of new business models?
- What are the main advantages and disadvantages that telcos have in each opportunity area?
- Executive Summary & Introduction
- Pressures on Operators
- The new Telco 2.0 Framework
- Principles of Innovation and Services Delivery
- – Strategic Positioning
- – Design
- – Development and delivery
- Categorising telcos
- Category 1: Leading international operators
- Category 2: Regional leaders
- Category 3: Wholesale and business-focused telcos
- Category 4: Challengers & disruptors
- Category 5: Smaller national leaders
- Conclusions and Recommendations