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.
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.