Telco 2.0 Transformation Index: SingTel, Telefonica lead AT&T, VZ and Ooredoo (but all need more)
The Telco 2.0 Transformation Index, launched today, gives an overall comparative benchmark and in-depth analysis of the progress of five leading telcos (AT&T, Verizon, Telefonica, SingTel and Ooredoo) in terms of transforming their operations and building new 'Telco 2.0' business models. Overall, it shows that SingTel and Telefonica have made more progress than AT&T, Verizon and Ooredoo, but that all are still at a relatively early stage of maturity and have much still to do.
In the disruptive context of a $400bn 'digital hunger gap', and core revenues shrinking by 20-30%, the Telco 2.0 Transformation Index provides the first definitive benchmark of how well telecoms operators are equipped to survive, compete and thrive.
Figure 1 below, taken from the overall benchmarking report, shows the headline output from the Telco 2.0 Transformation Index:
To see how this is captured by the Telco 2.0 Transformation Index, its methodology must first be understood.
The Telco 2.0 Transformation Index analyses five core domains covering both a CSP's external environment and its internal structures and performance:
- Marketplace: the context in which the CSP operates. It consists of the regulatory environment and the alternate service offerings offered by competitors.
- Service Offering: what the CSP delivers to customers in particular market segments. It is defined by the CSP's corporate and services strategy.
- Value Network: the way the CSP organises itself to deliver service offerings. It includes both the internal structure and processes and external partnerships.
- Technology: the technical architecture and functionality that a CSP uses to deliver service offerings
- Finance: describes the way the CSP generates a return from its investments and service offerings. It also measures the CSP's success in generating returns.
This framework is summarised graphically by Figure 2 below:
- The Value Network is the key differentiator between CSPs: Telefonica and SingTel, having both made bold organisational changes, score highly here. However, this has not yet been reflected in the quality of their service offerings.
- Verizon, AT&T and Ooredoo are strong in very different domains: Verizon performs well in the Service Offering and Value Network, AT&T performs well in the Service Offering, whilst Ooredoo is strong in both the Marketplace and Technology domains.
The Telco 2.0 Transformation Index also allows the reader to drill down and look at the rationale behind each score in increasing levels of detail. Headline output and analysis, contained within a 230+ slide benchmarking report is reinforced by five 140+ slide 'deep-dive' reports for each CSP which are each in turn accompanied by a data pack detailing every numerical input to the CSP's score.
It therefore provides a unique opportunity for strategists within CSPs and the vendors and investors they deal with to gain both strategic, contextual knowledge of the industry and dedicated, idiosyncratic knowledge of individual CSPs.
With the telecommunications landscape changing at an unprecedented rate, telcos, vendors and investors have never been under so much pressure to understand both how telcos can adapt and thrive in this new environment and how well they are doing. There are invaluable lessons to be learned from the experiences and aspirations of leading CSPs to date. These are what the Telco 2.0 Transformation Index provides: click here to find out more.