Successful Telco 2.0 Transition Requires Strategic Partnerships with Digital Players
2014.12.29   |   7 pages   |   NextGen Strategy Reports

Brendan Dunphy



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Most MNOs still appear uncertain how to navigate to the digital world of Telco 2.0. Understanding the options, and how to go about choosing and implementing a strategy, is increasingly urgent. Faced with a fundamental change in the way value is created (a strategic infliction point according to Andy Grove, Chair of Intel) most have so far tried to avoid any strategic decisions, simply extending their current business model. As ARPU has declined, competition has increased and OTT operators have disrupted revenue streams, all MNOs have addressed efficiency.

Telefónica, almost uniquely, empowered a separate digital business unit to pioneer and lead the way for the MNO, but it has since closed that unit and re-absorbed its digital mission into the parent organisation. Failure to make bold strategic decisions to transition to Telco 2.0 today may leave many adrift tomorrow. This is already the case in India, for example, where digital entrants from adjacent sectors (e.g. e-commerce and social media), are re-setting customer expectations faster than MNOs anticipated, leaving them to scramble to partner and adapt as best they can.

Companies: Intel, Telefonica, Facebook, WhatsApp, Twitter, Instagram, Free. Three, Singtel, Vodafone, SFR, Orange, Bouygues, Vodacom, MTN, Cell C

Countries: UK, France, India, Guatemala, Indonesia

Keywords: Innovation, Digital players, digital product development, OTT, horizontal integration model, KPIs, Telco 2.0 S-Curve, all-IP telecoms, digital disrupters, Digital Business Unit, business model, MNO, Telco 2.0 Strategy, ARPU decline, adjacent sectors, voice-centric Telco 1.0,

Table of Contents
  Successful Telco 2.0 transition requires strategic partnerships with digital players 1
  Inferences and Implications for Mobile Operators 1
1 Supporting Research & Analysis 2
1.1 Context 2
1.2 Analysis 3
1.3 Research 3

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