RESEARCH REPORT

In brief

In brief

  • Explore how digital disruption, 5G and the internet of things are changing the market landscape for B2B units of Communications Service Providers.
  • Understand the scope of the opportunity and the challenges presented by OTT players chasing the same prize.
  • Successful companies will become Connected Industry Orchestrators. The report introduces the concept and lays out a 3-step transformation journey.


B2B: Driving new growth in the communications industry

The connected world and 5G rollout are creating radical opportunities for Communications Service Providers, particularly in the B2B space. There will be a breadth of new potential, particularly for the supply chain. Now is the time for CSPs to use this to their advantage, making the most of their trusted customer relationships and connectivity bases.

To compete, CSPs will need to broaden their current strategies and invest in transformation, scaling new business models and creating new opportunities in the B2B business. Driving return on investments in new B2B services also requires a complete transformation of business and operating models.

But CSPs aren’t the only companies with their eyes on this prize. OTT players are seizing new opportunities. Amazon, Google and Microsoft are examples of companies leading the way as revenue growth leaders, recording B2B growth rates of over 40%.

According to Gartner, by 2020, 23% of the CSP's large enterprise business communication revenues will be catalyzed by new digital services such as cloud, collaboration or Internet of Things (IoT).

B2B - The Next Wave of Telco Growth

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Disruption, it comes as standard

Our Disruptability Index research confirms that disruption is now the norm in the Communications industry. Unlike other sectors, Communication companies are also the purveyors of disruption, as they provide the networks and technologies over which change happens.

3269 companies were analyzed across 20 industries and 98 industry segments, looking at 15 factors that gauge and contextualize both the current levels and susceptibility of future disruption. Disruption is manageable, but for companies to see improvement, they require constant reinvention.

3269

Number of companies analyzed.

20

Number of industries included in our in-depth research. 

98

Number of industry segments we put under the microscope.

15

Number of factors taken into account in each industry segment.



Rewrite your network DNA

To beat the disruptors and capture the business opportunities for themselves, changing operating models will be as essential as choice of technologies. It requires a strong vision but also the foresight to monetize future investments. Ensuring that a strong vision becomes a strong reality.

In a world of connected industries, tradeable assets will be created by the knowledge of the behaviors and needs of the connected objects. In combination with communications companies’ unique assets, opens an opportunity for an ecosystem play where the communications company can be an orchestrator of these transactions. This leads to a business model where monetization is based on service and transaction, not on consumption of voice minutes or bytes.

Connectivity providers can follow a three-stage journey to becoming a Connected Industry Orchestrator

1. Connectivity Provider

As a connectivity provider, companies sell basic data, voice and connectivity. Revenues are secured from one-to-one service fees.

2. Connectivity ++

Here, many companies are already either planning or selling new offerings such as Software-Defined Wide Area Network (SD-WAN), multi-access edge computing (MEC) and other digital services.

3. Connected Industry Orchestrator

Becoming a connected industry orchestrator entails selling full connected industry solutions, connecting value chains, embracing sensors, cloud connectivity and Device as a Service.

About the Authors

Anders Lindblad

Lead – Communications and Media, Europe


Shivani Vora

Managing Director – Accenture Strategy


Gopi Kurup

Managing Director


Manny Mehta

Managing Director, Lead – North America Communications Industry


Anders Lindblad

Managing Director – Communications and Media Industry Lead, Europe


Francesco Venturini

Global Lead – Communications and Media​

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