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.
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.
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
How can communications services providers (CSPs) transform their businesses from Telco 1.0 (infrastructure-led stasis) to Telco 2.0 (sustainable innovation-led growth)? An essential, step-by-step guide to the implementation of new Telco 2.0 business models, providing telecoms executives and their partner companies with a systematic approach to capitalise on new opportunities and neutralise potential threats. The report outlines robust frameworks and methodologies for selecting the right Telco 2.0 strategy for each organization, identifying and implementing the key opportunities, and avoiding expensive and time-consuming mistakes. (December 2012, Telco 2.0 Transformation Stream) Telco 2 Implementation Cover
‘Telco 2.0’ has evolved considerably since we put forward the original concept for telcos’ future success in 2006. Here we dispel ten myths and misunderstandings that have also evolved that can misdirect strategy. (August 2012, Executive Briefing Service, Transformation Stream.)
impact of 2sbm aug 2012 small
Vodafone have been quietly stealing a march in the European SMB communications market with a well executed strategy centred on its OneNet cloud-based product. We look at how, including comparisons with BT, Telenor, and others. (May 2012, Executive Briefing Service)
Vodafone Voice Analysis May 2012
Our latest report on M2M 2.0 covers: M2M market growth, structure and dynamics; business models; the best role(s) for telcos; and leading thinking from Deutsche Telekom, Vodafone, Telenor, KPN and Swisscom. It describes how ‘Service Enablers’ are key to the telco opportunity in M2M in addition to connectivity. (July 2011, Executive Briefing Service)
M2M Pie Chart Service Enablers July 2011
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