Five steps for long-term competitiveness in the communications industry
Operators can transform costs and drive growth with
a balanced approach to today's challenges
a balanced approach to today's challenges
Overview
A new class of competitors will force Communications Service Providers (CSPs) to find new strategies for long-term competitiveness. This will demand significant investment. Financing this investment requires CSPs to transform their cost base and change how they allocate resources. Accenture's Fuel for Growth framework can help CSPs to find, achieve and sustain long-term competitiveness.
Maddie Walker explains Fuel for Growth strategy in Telecom TV interview
Key Findings
Disruption will continue to be the norm for Communications Service Providers as their traditional business model comes under assault. Industry analysts Ovum predicted that $100 billion of operators’ revenue was at risk in 2016 alone.
Driving this revenue risk are Over-The-Top (OTT) providers delivering services over IP networks belonging to others. Liberated from network investments, they use just 7% of their revenue on capital expenditure while CSPs will be pushed to 18%. That push comes primarily from the pressures of spiralling video usage; it’s expected to account for 69% of mobile data traffic by 2019. Meanwhile, familiar names in OTT (Google, Amazon, Facebook) are adding capabilities to become communications providers in their own right.
Communications Service Providers are still in the enviable position of owning the networks on which everyone's growth relies, and they have access to the “eyeballs” of millions of customers. Our Fuel for Growth framework is tailored to deliver long-term competitiveness for CSPs.
Authors
Maddie Walker
Managing Director - Communications, Media & Technology
Jürgen Morath
Managing Director - Strategy
Quentin Derome
Strategy Lead - Communications, Media & Technology