October 30, 2014

Telco Transformation: Preliminary research results show large variation in strategy and progress

It is a couple of weeks since we started a piece of research focused on the transformation of Communications Service Providers (CSPs).  We thought it might entice more CSP executives to respond to our survey if we gave you a peak at some of the results.  A full analysis will be made available to survey respondents that fully complete the survey.

The survey itself is available here and will take 10 minutes to complete.

It covers:

  • CSP aspirations for digital services
  • Optimal investment levels for digital services and how close CSPs are to this at present
  • Key success factors for implementation of digital services and progress in addressing these

Initial research results

Turning to this last point around implementation key success factors, below is a chart summarising the results of the first 30 or so respondents with two factors revealed (we don’t show more lest we prejudice you before you complete the survey):

CSP transformation, summary chart.png

Source: CEP Transformation Survey, Preliminary research results only

It is clear that, on average:

  • 8 out of 9 of the key success factors are rated as close to or above ‘Important’
  • 2 factors are rated as being particularly important - ‘Senior management support’ being one of these. 
  • All of the factors will take more than 2 years to ‘resolve’ with several close to averaging over two years (including ‘Prioritising digital services’). 


So, in summary, there is a lot of important stuff to get right if CSPs are to transform themselves and successfully adopt new business models and services and it is going to take a while to get there.


Digging a bit deeper shows wide variation

As any statistician will tell you, averages are awfully misleading.  In this case, what they fail to show is the variance from respondents in the two factors we have revealed - ‘Senior management support’ and ‘Prioritising digital services’.  The charts below show the distribution of responses among all participants (with the bubble size representing the proportion of respondents) for both factors.

CSP transformation, more details.png

Source: CEP Transformation Survey, Preliminary research results only

What these show is that:

  • While there is consistency among respondents about the importance of senior management support for CSP transformation, there is huge variability over progress.

o   Worryingly, few respondents feel they yet have the support of senior management - Only 14% rated it as ‘Competed, In hand’

o   Perhaps even more worrying is that 25% are unclear on how to progress winning over their senior management team

  • For ‘Prioritising digital services’ things are even more varied:

o   Wide scope of responses on both importance to change and organisation progress

o   Around 28% feel it is ‘Irrelevant’ or of ‘Limited Importance’ and most of these, unsurprisingly feel it will take more than 2 years to resolve or are unclear how to resolve (but presumably don’t care much about this) - the 5 bubbles in the bottom right

o   Conversely, 46% feel it is either ‘Important’ or ‘Critical’ and are equally sceptical about their organisation’s ability to resolve - the 4 bubbles in the top right

 

Once we have sufficient responses, we will share the detailed results with respondents and give insight about differences by region and, potentially, by individual CSP.   Will also explore how big CSPs think new digital services could become for them over time (in revenue terms) and how much they should be investing (as a proportion of their opex and capex budgets).

The survey itself is available here and will take 10 minutes to complete

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October 27, 2014

Telco Q3s: VZ, AT&T, Orange, China Unicom, EE, MTN - Telco 2.0 News Review

‘Digital Asia 2014’ Executive Brainstorm and Innovation Forum, run by STL Partners in collaboration with Telkom Indonesia, is designed to equip 250 specially-invited business leaders from across the region’s telecoms, enterprise and technology sectors with new, breakthrough ideas, methods and tools on how to grow significant new revenues in the next 12-18 months leveraging Mobile, Cloud and Big Data.

Telco Q3s: VZ, AT&T, Orange, China Unicom, EE, MTN

It’s time for the telco Q3s. The dynamic duo go first, with TelecomTV pointing out that Verizon is on $3.8bn of net income and AT&T is on $3bn, and most of the rest of their numbers are roughly similar.

That said, the main story at AT&T is wireless net-adds, with 2.4m year-to-date and 785k in the quarter, while service revenue is flat and operating-level profits falling.

Continue reading "Telco Q3s: VZ, AT&T, Orange, China Unicom, EE, MTN - Telco 2.0 News Review" »

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October 23, 2014

CSPs/Telcos: How big is digital going to be?


If you work on behalf of a Communications Service Provider (CSP), we would like to ask you to participate in a research programme we are undertaking on transformation. We have already collected some fascinating results and, through your participation, you can have access to these too.

Most Communications Services Providers (CSPs) around the world have embarked on the journey to new (Telco 2.0) business models via the development of ‘digital services’.

As part of STL’s support to CSPs on this journey, we would like to ask you to contribute to a questionnaire on transformation. It will take only 10 minutes and focuses on 3 big issues:

  • How important should digital services be for CSPs?
  • What is the optimal level of investment in digital services and how close are CSPs to this at present?
  • What are the biggest barriers to successful implementation of digital services and how effective are CSPs at overcoming these barriers?

- Access the survey here -

Please note:

  1. The survey will take only 10 minutes to complete.
  2. Your individual answers will not be revealed to anyone, ever.
  3. A summary of the valuable results will be shared with you.

You can contact us here if you have any questions about the survey. We will also be covering CSPs’ digital transformation at Digital Asia 2014, 2-4 December, Bali, and at OnFuture brainstorms in Arabia, Europe and the Americas.

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October 20, 2014

Internet of Things special: Telco 2.0 News Review

‘Digital Asia 2014’ Executive Brainstorm and Innovation Forum, run by STL Partners in collaboration with Telkom Indonesia, is designed to equip 250 specially-invited business leaders from across the region’s telecoms, enterprise and technology sectors with new, breakthrough ideas, methods and tools on how to grow significant new revenues in the next 12-18 months leveraging Mobile, Cloud and Big Data.

Cisco “fog computing” release 2; GSMA spec for IoT devs; IoT makes GM a net neutrality player

Cisco announced this week the second release of its Internet of Things products, the IOx Fog Computing line, including a new applications management module and some new vertical apps for railways and video surveillance, as well as support for the software in 16 more routers. They are also boasting of some major deployments - General Electric and WindRiver, manufacturer of real-time operating systems for IoT devices, stand out.

Continue reading "Internet of Things special: Telco 2.0 News Review" »

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October 15, 2014

Enterprise Mobility: Digital Asia 2014


In the age of the smart device, organisations are adopting Enterprise Mobility to transform how they support and engage employees, customers and business partners.

STL Partners’ recent research, has revealed that MNOs are well placed to support their business customers’ Enterprise Mobility ambitions. MNOs have a “credibility advantage”: enterprises expect Telco’s to be able to support them. However, most operators are a long way from seizing this opportunity.

We’ll be exploring this topic further as a focused session at Digital Asia 2014 (2-4 December, Bali), the session aims to enable Enterprise Mobility strategists, planners and practitioners to brainstorm and share best practice. The session will include presentations and break-out groups focusing on:

  • What strategy and roadmap should MNOs be putting in place?
  • Which resources and organisational changes will be required?
  • What should the product portfolio look like?
  • When and how should an operator build / Buy / Partner?

    This focused Enterprise Mobility session includes Monty Hamilton (Director Digital Innovations, Telstra), presenting on how Telstra have adopted enterprise mobility solutions within Telstra to turn their operations into a more efficient organisation, leveraging digital channels and touch-points with customers.

    To register your interest for the focused session ‘Enterprise Mobility’ at Digital Asia 2014 (2-4 December, Bali) please click here. To find out more on the event please visit www.onfuture.com/Digital_Asia2014.

    DigitalAsia_2014_headimage_800.jpg

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  • CSPs/Telcos: Is your organisation transforming quickly enough?


    If you work on behalf of a Communications Service Provider (CSP), we would like to ask you to participate in a research programme we are undertaking on transformation.

    Most Communications Services Providers (CSPs) around the world have embarked on the journey to new (Telco 2.0) business models via the development of ‘digital services’.

    As part of STL’s support to CSPs on this journey, we would like to ask you to contribute to a questionnaire on transformation. It will take only 10 minutes and focuses on 3 big issues:

    • How important should digital services be for CSPs?
    • What is the optimal level of investment in digital services and how close are CSPs to this at present?
    • What are the biggest barriers to successful implementation of digital services and how effective are CSPs at overcoming these barriers?

    - Access the survey here -

    Please note:

    1. The survey will take only 10 minutes to complete.
    2. Your individual answers will not be revealed to anyone, ever.
    3. A summary of the valuable results will be shared with you.

    You can contact us here if you have any questions about the survey. We will also be covering CSPs’ digital transformation at Digital Asia 2014, 2-4 December, Bali, and at OnFuture brainstorms in Arabia, Europe and the Americas.

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    October 14, 2014

    Cloud Services: New Telco 2.0 Research stream iniatated; plus Cloud Services at Digital Asia 2014 speakers include; CEO Telkom Sigma, COO Telstra & Head of Cloud APAC Google


    Cloud is both disrupting and generating opportunities for Enterprise and Telco businesses. With the goal of accelerating the adoption of cloud services by telecoms operators whilst building on several years of ground-breaking Telco 2.0 research, we are initiating the Cloud 2.0 Programme, a set of activities that bring together leading thinking, practice and senior practitioners from telecoms operators, technology companies, and other industry facilitators.

    The programme acts as means to transform and develop operational agility and to provide external enterprise cloud propositions. Led by Bob Brace, Senior Analyst, STL Partners/Telco 2.0 (formerly Head of Cloud at Vodafone), the programme will comprise a stream of dedicated research reports, sessions at our executive brainstorms, and other networking and information sharing activities.

    Future reports in this stream include

  • The role of telcos in the cloud in 2015
  • NFV: Will it live up to the hype?
  • Telstra: a telco cloud case study

    The first session at our executive brainstorm (with networking opportunities) will be held at Digital Asia 2014 (2-4 December, Bali) covering how Cloud is shifting IT from playing a supporting role to being a core driver of business success. Senior Telco and industry Cloud specialists will explain how they are using cloud to differentiate in their markets, drive operational success and agility, and how cloud computing is now disrupting the networking and security markets.

    Key themes covered in the session include:

  • How Cloud has disrupted the Enterprise
  • Virtualisation affected computing first and now the network - what this means for Enterprises and Telco’s
  • How can Telco’s differentiate with cloud?

    Stimulus speakers and panellists include:

  • Bob Brace, Senior Analyst, STL Partners
  • Judi Achmadi, CEO, Telkom Sigma
  • Nathan Bell, COO, Telstra/Telkom JV
  • Cory Franzmeier, Head of Cloud APAC, Google

    To register your interest for the focused session ‘Cloud Services’ at Digital Asia 2014 (2-4 December, Bali) please click here.

    We are also initiating coverage of a new research programme on Cloud, and we’d really appreciate your input here. here


    DigitalAsia_2014_headimage_800.jpg

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  • October 13, 2014

    Nokia vs. Ericsson; Akamai in China; BRIC special - Telco 2.0 News Review

    ‘Digital Asia 2014’ Executive Brainstorm and Innovation Forum, run by STL Partners in collaboration with Telkom Indonesia, is designed to equip 250 specially-invited business leaders from across the region’s telecoms, enterprise and technology sectors with new, breakthrough ideas, methods and tools on how to grow significant new revenues in the next 12-18 months leveraging Mobile, Cloud and Big Data.

    Google’s first billion in India; Xiaomi hires Googler; spectrum rush; Reliance on your children

    Google says it expects to make $1bn of revenue in India in FY 2015. This money is coming basically entirely from advertising and e-commerce services, where Google seems to have broken through really well. It’s probably no accident that India is the priority for their Android One low-cost stock-Android devices.

    Continue reading "Nokia vs. Ericsson; Akamai in China; BRIC special - Telco 2.0 News Review" »

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    October 8, 2014

    Digital Disruption, Innovation and Transformation: Digital Asia 2014


    For several years the telecoms industry has enjoyed the benefits of broadband growth. Now, just as this is slowing, alternate communications solutions threaten to disrupt the industry’s core voice and messaging services.

    However, it is not all bad news: there are opportunities for operators to develop new sources of value and many are embarking on this route. We’ll be exploring this topic further at Digital Asia 2014, (2-4 December, Bali) and are initiating coverage of a new research programme on Internet-Driven Disruption, focusing on what changes need to be made by the industry to deliver a new business model including:

  • New strategies for creating and dealing with ‘digital disruption’
  • Key digital innovations and trends
  • New operational models and metrics - learning from the internet disruptors

    Stimulus speakers and panellists at the focused Digital Asia 2014 session include:

  • Chris Barraclough, MD & Chief Strategist, STL Partners/Telco 2.0 Initiative
  • Indra Utoyo, Director of Innovation & Strategic Portfolio, Telkom Indonesia
  • Gil Genio, COO Business & International Markets & CSO, Globe Telecom
  • Giles Corbett, Head of Libon, Orange

    To register your interest for the focused session ‘Digital Disruption, Innovation and Transformation’ at Digital Asia 2014 (2-4 December, Bali) please click here.

    We are also initiating coverage of a new research programme on Internet-Driven Disruption, and we’d really appreciate your input here. here

    DigitalAsia_2014_headimage_800.jpg

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  • October 6, 2014

    FCC, Euroregulators, BT, TIM, Altice, ARM, HP: Telco 2.0 News Review

    ‘Digital Asia 2014’ Executive Brainstorm and Innovation Forum, run by STL Partners in collaboration with Telkom Indonesia, is designed to equip 250 specially-invited business leaders from across the region’s telecoms, enterprise and technology sectors with new, breakthrough ideas, methods and tools on how to grow significant new revenues in the next 12-18 months leveraging Mobile, Cloud and Big Data.

    FCC action on 600MHz, whitespaces; Comcast-TWC on hold; Kroes lambasts carriers; GSMALeak

    The FCC has issued a new draft-NPRM on the future licensing basis for cellular spectrum, suggesting that it should be more geographically based. It also proposed changes to the Part 15 rules that govern radio interference, in order to let unlicensed operators use spectrum in the 600MHz band that had originally been assigned as guard bands. Harold Feld at Public Knowledge seems keen. Speaking of him, here’s a detailed post from his personal blog on how the FCC can solve some of the problems associated with Title II regulation by “forbearing” from implementing parts of it.

    And it announced that it had “stopped the clock” on its consideration of the Comcast-TWC merger.

    Continue reading "FCC, Euroregulators, BT, TIM, Altice, ARM, HP: Telco 2.0 News Review" »

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    October 1, 2014

    Dealing with Disruption: Effective Strategies


    Disruption is now widely spread and relatively well recognised throughout the global economy, but dealing with it is another matter. This challenge is central to the agenda of strategists and decision makers in every industry, particularly among Telecoms, Media, Technology, Retail, Finance, and Consumer Brands. What are the key factors, lessons and strategies for success in the increasingly dynamic and complex digital ecosystem?

    We’re developing a major new research stream on ‘Dealing with Disruption’ to help strategists and decision-makers develop successful new approaches to defending, evolving and growing their businesses, and would very much like your input via the short online survey here to help us shape the agenda. We’re also exploring disruption in Telecoms, Cloud, Big Data, Commerce, Content and Enterprise Mobility at Digital Asia 2014, Bali, 2-4 December. To find out more, or if you’d like to join us, please email contact@telco2.net.

    Playing ‘The Great Game’

    Back in 2011, when we published Dealing with the ‘Disruptors’: Google, Apple, Facebook, Microsoft/Skype and Amazon, the key driver was the desire for telcos to a) recognise the threat from, b) understand the drivers of, and ultimately c) develop strategies to deal with the wave of impending disruption from so-called ‘Over The Top’ (OTT) and Internet-based services. One output of the report was the outline of ‘The Great Game’ - the battle for key areas of the digital economy, and how the players were using disruptive strategies to build defensible platforms of their own.

    the great game 4 Nov 2011 v7 (Final) summary.png

    To some extent, the industry has started to get to grips with this emerging landscape. For example, we found major differences in the effectiveness of different telco strategies to pricing threatened services, as illustrated in the following chart from The Future Value of Voice and Messaging (November 2013).

    Continue reading "Dealing with Disruption: Effective Strategies" »

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    September 30, 2014

    Apple Pay & Weve Fail: A Wake Up Call


    We’ve just published a new research paper ‘Apple Pay & Weve Fail’. The unveiling of Apple Pay and unravelling of Weve (the UK operators’ payments venture) looked like bad news for telcos’ ambitions in mobile payments in some markets, and highlighted challenges to Google and others’ models. Yet there are already successful telco models and favourable market trends that telcos should exploit. So what are the opportunities now?

    You can read an excerpt of the report here. We’ll also be exploring the implications at Digital Asia (2-4 December, Bali), and are initiating coverage of a new research programme on Internet-Driven Disruption, and we’d really appreciate your input here. For more on any of these services, please email contact@telco2.net or call +44 207 247 5003.


    The consumer is authenticated via iphone's fingerprint scanner.jpg

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    September 29, 2014

    TI bidders, Millicom digital services, BlackBerry comeback, security crisis: Telco 2.0 News Review

    ‘Digital Asia 2014’ Executive Brainstorm and Innovation Forum, run by STL Partners in collaboration with Telkom Indonesia, is designed to equip 250 specially-invited business leaders from across the region’s telecoms, enterprise and technology sectors with new, breakthrough ideas, methods and tools on how to grow significant new revenues in the next 12-18 months leveraging Mobile, Cloud and Big Data.

    Trujillo bids for TI; Sawaris bids for TI; DTAG thinks it might keep T-Mo; Vodafone waits on BT 4G over UK fibre; Millicom digital services surge

    Here’s some excitement. Former Telstra CEO Sol Trujillo wants to buy Telecom Italia, raising $10.8bn or about 50% of the carrier’s market capitalisation. The obvious attraction is of course TIM Brasil, plus perhaps its other Latin American assets now they’ve been gathered into one handy package. He also, however, claims that if he gets it he’ll deploy much more FTTH in Italy, somehow, although the carrier comes with $35bn of debt.

    Continue reading "TI bidders, Millicom digital services, BlackBerry comeback, security crisis: Telco 2.0 News Review" »

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    September 22, 2014

    Apple CDN; Netflix; Google 2.0; Nextel PTT rides again - Telco 2.0 News Review

    ‘Digital Asia 2014’ Executive Brainstorm and Innovation Forum, run by STL Partners in collaboration with Telkom Indonesia, is designed to equip 250 specially-invited business leaders from across the region’s telecoms, enterprise and technology sectors with new, breakthrough ideas, methods and tools on how to grow significant new revenues in the next 12-18 months leveraging Mobile, Cloud and Big Data.

    Apple iOS 8, a global tournament of CDN performance; Netflix comes to Germany; has Media 1.0 found the money in the Internet?

    This week saw a major challenge in terms of Internet content delivery. It was of course the Apple iOS 8 update, a download of more than a gigabyte to vast numbers of devices. Apple, per Dan Rayburn, seems to have chosen to use its own home-built CDN for most of the downloads, although outside the US, they also made use of Akamai and Limelight capacity, enough of it that latency on Limelight’s network went up across the board.

    As the ramp-up began, some ISPs were 50% above normal by 4pm Pacific time. Apple was the biggest traffic source in France, overtaking YouTube, and second only to Netflix in the US. Traffic peaked at 3Tbps on a sample of North American residential ISPs.

    Screen-Shot-2014-09-17-at-11.03.19-PM-1024x797.png

    Continue reading "Apple CDN; Netflix; Google 2.0; Nextel PTT rides again - Telco 2.0 News Review" »

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    September 17, 2014

    Connected Car: Key Trends, Players and Battlegrounds


    We’ve just published a new research paper ‘Connected Car: Key Trends, Players and Battlegrounds’. Connected cars are set to revolutionise the automotive industry as we know it, turning the car into the ‘ultimate mobile device’ and driving the growth of M2M in a big way. With Apple, Google, telcos and many others in the chase, we analyse the growth drivers, value chain, and key battles for control of this increasingly complex ecosystem, and outline a new connected car services framework.

    You can read an excerpt of the report here. We’ll also be exploring the implications at Digital Asia (2-4 December, Bali), and are initiating coverage of a new research programme on Internet-Driven Disruption, and we’d really appreciate your input here. For more on any of these services, please email contact@telco2.net or call +44 207 247 5003.


    Extract chart from report:

    Connected Car Example Chart.png

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    Telco 2.0 Strategy Report Out Now: Telco Strategy in the Cloud

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