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Pathways to profitability for CSPs

September 26, 2022 5-MINUTE READ

RESEARCH REPORT

In brief

Pursuing profitable growth in the next era of connectivity

Telcos at an inflection point: the next 1-3 years

+137%

Projected growth in data traffic by 2026 (24% YoY 2022-6), rising to 1.8 million petabytes. [source: Analysys Mason Datahub based on a sample of 27 countries]

-37%

Decline in median ARPU between 2012 and 2021 [source: Analysys Mason Datahub based on a sample of 27 countries]

$1.4T

Cost of capital expenditure to build and upgrade networks between 2022 and 2026. [source Analysys Mason]. Contrasted to -15.4% decline in ROIC over the past 5 years. [source CapIQ]

From cloud to AI, technology’s progress is incubating new possibilities. New network technologies play a vital role in accelerating innovation. Innovation is where CSPs intensive 5G investments will be validated.

Amidst change, charting pathways to profitability

The future of networks

Establish the foundation for a new era of connectivity, leveraging AI + analytics for speed & value.

Connected consumer

Use data & consumer trust to become the ecosystem control point for the “connected life”.

SMB Growth

Become a true advisor and business partner invested in SMB success through new services & targeted offerings.

Large enterprise orchestration

Build horizontal & vertical E2E solutions that demonstrate the power of 5G, connectivity, edge, and security.

Industry restructuring

Create innovative business structures to focus on core & differentiating capabilities, and to streamline investments.

Making the move from learners to leaders

1. Network foundation

Build advanced networks and deploy with speed

2. Improve operations

Reduce costs to improve margins and fund innovation

3. Business innovation

Create new offers and transform go-to-market to find growth

4. Revenue capitalization

Execute necessary structural changes to unlock value and capital

Meet the team

Andrew Walker

Senior Managing Director – Communications & Media, Global

April Wirtz

Managing Director – Strategy & Consulting, Communications & Media – North America

Astha Bhardwaj

Managing Director – Strategy & Consulting, Communications & Media, Asiam

Jeffrey Berry

Managing Director – Accenture Strategy, Mergers & Acquisitions and Private Equity

Sean Delaney

Managing Director – Strategy and Consulting, Communications and Media

Brian Smyth

Director – Communications & Media, Innovation

Ankit Dhamani

Senior Manager – Corporate Strategy and Mergers & Acquisitions, Communications and Media

Mark Flynn

Senior Manager – Accenture Research

Related capabilities

The Future is 5G

Accenture research shows that companies that invest in advanced network capabilities such as 5G will grow revenue 2.5 times faster by 2025.