In brief

In brief

  • Communication Service Providers (CSPs) have an opportunity to re-establish a key role in future value chains, especially in their B2B businesses.
  • Infrastructure-bound CSPs have un-scalable, siloed legacy business, operating and workforce models and new rules are needed to scale new growth.
  • The advance of intelligent digital technologies like 5G offers opportunity for end-to-end business transformation through innovation-led approaches.


Trash the Rulebook—flip to new growth models

Accenture’s Global Communications and Media Industry Lead, Francesco Venturini outlines the challenges—and the incredible opportunities—for the industry to build on its strong heritage and flip to a choice of new growth models.

The rules have changed

The industry is being squeezed from all sides. Top-line growth is stalling. Revenues have levelled off. Customers are finding new ways to engage, digitally and digital disruptors are undermining the traditional base of services.

Shift and disruption of value

The commoditized core business isn’t profitable and there’s ongoing substitution with low cost, digital alternatives.

Changing rules of the game

Market boundaries are collapsing and traditional approaches to growth are no longer sufficient. Historic positions of strength are eroding.

The liquid customer is here

Ongoing reduction of customer loyalty. Incumbency is no longer an advantage – CSPs are not an essential part of the users’ daily digital routine.

The telco playbook is outdated

Infrastructure-bound, with vertical integration & siloed operating models. CSPs have unscalable operating & technology models and legacy workforces.

Scaling new growth is a deliberate and perpetual change journey, not a single event

The S-Curve to manage transformation.
  1. Transform the core business by building more competitive cost structures to improve flexibility, increase profits, and drive up investment capacity.
  2. Grow the core business by redirecting some of that investment capacity to drive incremental growth in the core business.
  3. Scale new business while identifying new sustainable business models which leverage and monetize key control points and scale them (at the risk of core business cannibalization).
  4. Pivot wisely by keeping an eye on pace and balance. The “core” and “new” businesses usually need to co-exist for a substantial period of time.

New models for B2B and B2C growth

Success demands a departure from today’s models and competencies if CSPs are to scale new growth models. In the long term, we see there being two key growth scenarios for CSPS. Each scenario needs distinctively different skills and capabilities, as well as divergent investment priorities and value creation logic.

Connected industry orchestrator

Building the B2B business by connecting industry X.0 with secure, reliable & smart connectivity.

  • Driven by open APIs and digital management & operations capabilities, specialized network clouds/value added services supported by real-time AI.
  • Consolidated, mega-network. Hyper-lean operating model.
  • Outcome-based connectivity monetization.

Multi-sided platform model

Maximum reach in B2C via an ecosystem of partners, customers and developers.

  • Monetization of CSP control points & AI-powered creation of offerings to drive customer value.
  • Focus on data & ecosystem services around Home, Mobility & Enterprise to command a digital service market revenue share.
  • Turn customer access & insight into tradeable assets.

About the Authors

Francesco Venturini

Global Lead – Communications and Media​


Manny Mehta

Managing Director, Lead – North America Communications Industry


​​​​​Matteo Maga

Lead – Communications & Media for AAPAC


Anders Lindblad

Lead – Communications & Media for EALA

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