‘Network as a Service’ (NaaS) and ‘enterprise virtual CPE’ (vCPE) are the leading customer-facing applications in which NFV and SDN approaches are being applied. This report looks at 13 leading operators in North America, Europe and Asia, what they are doing, and what strategies are emerging.
STL Partners explores in detail how thirteen leading operators are addressing NFV and SDN. By exploring each management team’s vision for the technology and the current implementation activities, we have been able to identify six segments – from dynamic ‘NFV Business Model Transformation Pioneers’ to more prosaic ‘Utilitarian Adopters’. The report also outlines three major ‘best-practice’ recommendations for other players.
In this analysis we examine the background and trajectory of Telefónica’s high-profile NFV program, how it may evolve, and the implications for other operators on or considering the journey.
The last few years have seen attempts by many leading telecoms operators to refresh their business model and generate new sources of growth and value. Now many digital initiatives are being scaled back. Telefonica and Telenor, two companies in the vanguard of the ‘drive to digital’ have both disbanded their digital organisations. In the first of two reports, STL Partners explores why efforts to yoke platform and product innovation businesses to a traditional infrastructure business have proved so difficult. The financial and operational constraints associated with traditional telecoms – particularly the need for long investment cycles in ‘one-function’ infrastructure – have made achieving the switch to ‘agile digital innovation’ all but impossible. But all that may be about to change and the future could be a little brighter.
Our latest analysis shows staggering differences in ‘app-lag’ (the time it takes for an app to get a response over the Internet) across France, Germany, Italy, Spain and the UK, and twenty mobile operators. This has significant consequences for customer data experiences, and potentially operator market performance too. Operators in France, particularly Bouygues and Free, are delivering a superior customer app experience while 3 in Italy and Movistar in Spain are European laggards. (October 2015, Foundation 2.0, Executive Briefing Service.)
Over 5 years, BT Group’s share price has more than tripled, outperforming Apple’s and Google’s, while its revenues have shrunk. Why, and what can other telcos learn from its success?
In the first of two reports, STL Partners evaluates how several powerful forces, within and beyond the control of telcos, look set to change the shape of the European market and considers the options for how these forces might develop going forward.
A high-level analysis of the M2M market, including the strategies of Vodafone, AT&T and Telefonica, and the impact that the Internet of Things and new entrants such as Google and others will have with new business models. What are the implications for operators, and where is it all leading?
The latest results for Telefonica are grim, showing a 12% y-o-y revenue decline, following Orange and Deutsche Telekom’s 4% drops. This signals unequivocally that transformation is now a necessity not a luxury for European operators – and the rest of the world is not far behind. Longer term recovery is possible but not a certainty – what are the key steps? (May 2014, Foundation 2.0, Executive Briefing Service, Telco 2.0 Transformation Stream.)
Enterprise Mobility Framework December 2013
In this new report based on Telco 2.0 Transformation Index analysis we compare Vodafone’s competitive positioning with another European-centric multi-national, Telefonica. The results are surprising and instructive, showing that Vodafone faces substantial challenges if it is to grow in the foreseeable future.
Albeit pioneering, Telefonica’s Digital business unit as was lacked focus and combined too many clashing cultures and incompatible businesses. Our latest analysis sees the change as ‘the end of the beginning’ for Telefonica’s Telco 2.0 services, and summarises lessons for all players implementing strategic transformation.
Operators face difficult choices on the best way to change their business models. In this note we analyse the approaches taken by AT&T, Verizon, Ooredoo, Singtel and Telefonica, extrapolate the options for all carriers, and offer a framework to help managers define the right new business model goal for their organisation.
So Facebook is buying the mobile IM app WhatsApp for $19bn including $4bn in cash, and WhatsApp is launching a voice service. Why, and what are the consequences and lessons for telcos and others?
Disruption is taking place across the voice and messaging space – not just with telcos. Established vendors and de facto technology standards are also being challenged. For example, Cisco, the market leader in enterprise telephony, finds itself being disrupted in key markets by other vendors offering more horizontally integrated solutions. This report provides an overview and insight into a number of vendors and technologies in the voice and messaging markets, including telco platforms and services, and LTE, RCSe, and WebRTC. Three telco case studies (Vodafone, Telefonica and AT&T) are also provided, examining their activities, products and results.
Our new research shows how telcos can slow the decline of voice and messaging revenues and build new communications services to maximise revenues and relevance with both consumer and enterprise customers. It includes detailed forecasts for 9 markets, in which the total decline is forecast between -25% and -46% on a $375bn base between 2012 and 2018, giving telcos an $80bn opportunity to fight for. It also shows impacts and implications for other technology players including vendors and partners, and general lessons for competing with disruptive players in all markets. It looks at the impact of so-called OTT competition, market trends and drivers, bundling strategies, operators developing their own Telco-OTT apps, advanced Enterprise Communications services, and the opportunities to exploit new standards such as RCS, WebRTC and VoLTE. (November 2013, Executive Briefing Service). Future Value of Voice and Messaging Cover Small
150 senior execs from Vodafone, Telefonica, Etisalat, Ooredoo (formerly Qtel), Axiata and Singtel supported our technology survey for the Telco 2.0 Transformation Index. This analysis of the results includes findings on prioritisation, alignment, accountability, speed of change, skills, partners, projects and approaches to transformation. It shows that there are common issues around urgency, accountability and skills, and interesting differences in priorities and overall approach to technology as an enabler of transformation. (November 2013, Executive Briefing Service, Transformation Stream.) Telco 2.0 Transformation Index Tech Survey Cover Small
Telcos, Internet and technology players, banks and payment networks have disruptive $billion opportunities to act as intermediaries / enablers in mobile commerce and personal cloud services, based on the appropriate use of customer data. This report is a unique and comprehensive strategic guide for success in these roles. It analyses the strategies of the main and cutting-edge players, and outlines key success factors in designing and delivering customer propositions, technology, organisation and value network strategies. It also includes evaluations of the related strategic opportunities of ‘raw big data’, professional data services, and internal data use, and a business model showing how one type of candidate for the intermediary role, a telco, could grow profitable new revenues equivalent to c.$50Bn (5% of existing core revenues) within five years. (October 2013, Dealing with Dsiruption Stream). Telco 2.0 Transformation Index Small