Telcos must take the call

Over the past decade, telcos have been under continuous pressure as their traditional value pools have gradually eroded and new growth horizons have proven elusive, driving return on investment capital (ROIC) ever closer to weighted average cost of capital (WACC). While telcos rose to the challenge of 2020 – connecting people to work, school, family and healthcare – the pandemic accelerated and amplified trends that were already redefining the basis for success.

Our prior research has demonstrated that organisations that move early to restructure and change during times of crisis come out ahead in the subsequent decade. Therefore, 2021 was a critical year for operators: a unique opportunity to fundamentally reimagine their business or, alternatively, risk another decade of decline.

The next generation of telcos will be defined by leaders who act now, risking short-term incumbency advantages to seize untapped growth. The current moment demands a holistic, future-back approach to transformation, in which leaders deliver on four or five bold, integrated changes to reset their organisation’s DNA….

There has been customer-back disruption, in which digital-native companies like Uber and Netflix have set a new standard for seamless online experiences. There has been business-model disruption, with technologies like AI, big data and the Internet of Things. There has been new-entrant disruption, with increased competition among traditional and non-traditional players.

From “A Blueprint for Telecom’s Critical Reinvention”