4 minute read 5 Apr 2021
Group of people with protective masks outdoors in the city

What CSPs can do to extend their market opportunities for telecoms

By Jose-Luis Garcia

EY Global Technology, Media & Entertainment and Telecommunications (TMT) Managed Services Leader; EY EMEIA Technology Sector Leader

Over 30 years of senior executive experience supporting successful, large-scale business transformation. Skilled in management consulting, Telecoms and IT, sales and operations.

4 minute read 5 Apr 2021
Related topics TMT Telecommunications

The COVID-19 pandemic has reinforced the criticality of the telecommunications sector across the world.

This article is part of the EY NextWave Telecommunications Journal

In brief:
  • Telcos must ensure the successful transformation of their own businesses whilst also being the enabler for digital transformation across all industries.
  • As enterprises across all sectors begin to understand what 5G is truly capable of, network demand will soar. 

Consumers feel positively about the work that communications service providers (CSPs) are doing in general and the market opportunity is there to provide telcos with the possibility to offer more than just connectivity. However, there are still some challenges to face.

Unlike other sectors, CSPs must deal with digital transformation in two different ways: they have to ensure the successful transformation of their own businesses and, at the same time, be the enabler for the digital transformation of all other sectors in our global economy. That is what makes this sector so fascinating, but it also introduces additional complexity.

Generally speaking, but more importantly under a scenario of economic deterioration, CSPs have a need for continual investment to increase the resilience of their networks in mission critical functions; secure the quality and capacity of their services; and make sure that the impact of the economic slowdown in all other sectors is minimized. Quality, security and resilience are vital.

To achieve this overarching goal while remaining profitable – and because telecommunications is a capital-intensive industry – CSPs are faced with the need to implement operational efficiency measures that, once realized, will free up the much-needed funds for transformation. And all of this must be done while attempting to adapt their business models to an ever-changing market.

It can seem daunting. But the opportunities outweigh the challenges and working with us means CSPs can begin to take advantage of today’s dynamic environment.

Think forward

The key to achieving this goal is to be proactive and flexible about change. Think ahead but also have the ability to adapt to changes in your planning in a nimble way. As an example, and when it comes to 5G specifically, the market will inevitably reach a point where there’s a lag between supply and demand. As enterprises across all sectors begin to understand what 5G is truly capable of, network demand will soar, thus stressing the supply in the system. CSPs need to model demand scenarios and think ahead to meet them – but also expect the unexpected.

Equally, and to keep up with digital transformation, telcos need to offer more than just connectivity. The good news is that they do not have to do it all by themselves, but rather can open up to an ecosystem of partners; leverage alliances in new ways; embrace more flexible approaches; share infrastructure; and implement new business models wherever and whenever necessary.

Now’s the time to work with over the top (OTT) organizations and other relevant players, as opposed to resisting them – and crucially, seek out the opportunity, look for those companies that might be successful in the future, and transform the business as we know it today or even create new business where none currently exists.

Working with Netflix or Google today would undoubtedly be more expensive and complicated than it was 10 years ago. Partnering with, or acquiring, a business is always easier and cheaper in the early stages. Therefore, telcos must dare to reimagine their business and take controlled risks to shape the future. Today, they are in a fantastic place to do so.

To read more about Future Network Now take a look at the full NextWave Journal (pdf)

Summary

Future Network Now can be delivered with a view to simply assess the current state of your business, or to support telcos to implement and ultimately run the necessary improvements under a managed services construct. It’s a completely flexible approach.

About this article

By Jose-Luis Garcia

EY Global Technology, Media & Entertainment and Telecommunications (TMT) Managed Services Leader; EY EMEIA Technology Sector Leader

Over 30 years of senior executive experience supporting successful, large-scale business transformation. Skilled in management consulting, Telecoms and IT, sales and operations.

Related topics TMT Telecommunications