AT&T’s residential fixed operation is underperforming as faster cable connections take over. It would probably like to trim its footprint or get out, and invest in fibre and its content business model. Is that really an option, and what are the lessons for other telcos?
What is disruption, when is it a good idea, and what do you do when it happens to you? We illustrate five principles of disruptive strategy based on our analysis of the telecoms and adjacent markets over the past eight years. The analysis covers both principles of creating and defending against disruption.
A small and surprising set of national operators are delivering outstanding performance in the challenging European market. Our analysis shows how they’re achieving differentiation with smart strategies that target the hottest customer need, and the considerable ramifications for the rest of the market.
Verizon and Comcast have invested in high bandwidth fibre and cable networks, whereas AT&T has until recently focused on U-Verse, an IPTV play. Which strategy is winning out and why? The answer is surprising and may transform the US and other markets, and there are parallels with Apple and Samsung’s ‘deep value’ strategies of investing in assets that are hard to replicate.
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.
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.
How Sprint’s necessary shutdown of Nextel turned into a commercial disaster, losing valuable customers, reputation, and market share. Our analysis shows that amdist the drama of the Softbank deal and the complexity of a major network upgrade, SMB customer needs were neglected, and its competitors (VZW, AT&T and T-Mobile) stepped smartly in.
Transformation can be hugely valuable for telcos if they can grow platform and product innovation revenues to add to their core services. In this post previewing some of the findings from the new Telco 2.0 Transformation Index to be published next week (w/c 20th January) we show how this could work. ‘Platform’ and ‘product innovation’ business models produce higher returns …
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
Breaking up is always hard to do, but there are some things that make it easier. In this case, the partners’ interests have drifted apart, there are no kids, and the financial settlement looks like a reasonably good deal for everyone. Vodafone wants the funds for a mixture of transformation and diversification in Europe and other markets; Verizon wants to …
This extract from the Telco 2.0 Transformation Index shows our analysis of Telefonica’s markets and market position, including economic and digital market maturity, regulation, customers, competition and pricing. It is one part of our overall analysis of Telefonica’s progress towards transformation to the Telco 2.0 business model. The other parts of the Telefonica analysis are: Service Proposition, Finances, Technology, Value Network, and an overall summary. Telefonica is one of the companies analysed and compared in the first tranche of analysis that also addresses Vodafone, AT&T, Verizon, Axiata, SingTel, Etisalat and Ooredoo (formerly Qtel). (August 2013, Executive Briefing Service, Transformation Stream.) Telefonica Telco 2.0 Transformation Index Small
The fight for the Cloud Services market is about to move into new segments and territories. In the build up to the launch of our new strategy report, ‘Telco strategies in the Cloud’, we review perspectives on this shared at the 2012 EMEA and Silicon Valley Executive Brainstorms by strategists from major telcos and tech players, including: Orange, Telefonica, Verizon, Vodafone, Amazon, Bain, Cisco, and Ericsson (September 2012, Executive Briefing Service, Cloud & Enterprise ICT Stream).
Cloud Growth Groups September 2012
Opportunities exist for operators to support third-party businesses in Customer Profiling, Marketing offers, ID & Authentication, Network QoS, and Billing, Payments & Collection. However, our in-depth research among senior execs in ‘upstream’ industries (e.g. retail, media, IT, etc.) and telcos shows that poor communication of the telecoms value proposition and slow implementation by operators is frustrating upstream customers and operators alike. Our independent new analysis (kindly sponsored by Openet) identifies strategic customer segments for telcos building new ‘Telco 2.0’ business models, key obstacles to overcome, six real-world implementation strategy scenarios, and strategic recommendations for telcos. (April 2012, Executive Briefing Service, Transformation Stream.)
Google’s Advertising Revenues Cascade
Regardless of business strategy, the development of ‘Smart Pipes’ – more intelligent networks – will be a key driver of shareholder returns from operators. Smarter networks will also benefit network users – upstream service providers and end users, and operators, and their vendors and partners, will need to compete to be the smartest. What are they, why are they needed, and what are the key strategies employed to develop them? (February 2012, Foundation 2.0, Future of the Networks Stream).
Facebook user saturation bubble chart
Enterprise cloud computing services need great connectivity to work, but there are opportunities for telcos to participate beyond the connectivity. What are the opportunities, how are telcos approaching them, and what are the key strategies? Includes forecasts for telcos’ shares of VPC, IaaS, PaaS and SaaS. (September 2011, Executive Briefing Service, Cloud & Enterprise ICT Stream)
Apps & Telco APIs Figure 1 Drivers of the App Market Telco 2.0 Sept 2011
Telcos should grow Cloud Services revenues nine-fold and triple their overall market share in the next three years according to delegates at the May 2011 EMEA Executive Brainstorm. But which are the best opportunities and strategies? (June 2011, Executive Briefing Service, Cloud & Enterprise ICT Stream)
Cloud Forecast 2014