Today’s market conditions are creating challenging times for telco players. Even though consumer revenue has been historically high, margins are being squeezed because of the massive infrastructure investment telcos made in 5G to meet the COVID-19 spike in broadband demand and anticipated explosion in demand driven by various 5G use cases. Competition has been heating up from both traditional and non-traditional players. Customer expectations and the market have been shifting. And a looming recession and regulatory pressures have been creating uncertainty.
This report describes four future telecoms business models that are currently emerging around the world. It identifies some of the key capabilities that KPMG professionals believe are required to succeed in each model. And it offers practical steps to help today’s telecoms leaders envision — and create — the future.
Signals of change
While change is constant in the telco business, the factors driving change are constantly shifting. This report identifies and drills down into some of the most significant market factors that should currently be on telco leaders’ minds.
- Traditional business models are being challenged
- Escalating customer expectations
- Hyper-competitive hyperscalers
- A possible global recession
- Technology can create new opportunities — and threats
- Fulfilling the ESG agenda
- Telcos likely can’t avoid stricter regulations indefinitely
As the signals of change put pressure on traditional telco business models, there are various strategic imperatives emerging related to each one.
KPMG Connected Enterprise
KPMG Connected Enterprise is a customer-centric, tailored-by-sector approach to digital transformation. It transforms the way that you transform, helping you to focus your enterprise, operations and technology development on meeting customer, employee and stakeholder expectations, creating business value, and driving sustainable growth.
Telcos can benefit from adopting a set of fundamental capabilities to support the connected enterprise. These capabilities can help telcos define a customer-centric approach to digital transformation that connects the front, middle and back offices.
Enhancing these capabilities will help ensure that every process, function, and relationship of the organization is focused on meeting customer expectations, creating business value and driving sustainable growth.
Organizations that invest purposefully in these capabilities are twice as likely to meet customer expectations, achieve their objectives and deliver return on investment.*
You can discover how connected your organization is by using the diagnostic tool. It assesses you against industry best practice and highlights the opportunities and challenges that may affect your ability to become a connected enterprise.
*Base: 1,299 professionals involved with customer strategy decisions
Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, 2018. The research was conducted on a sector specific basis. Each capability is enabled by five level two capabilities.
Strategic approaches for your business
Every day, telecommunications companies see increasing complexity, conflicting choices, and infinite information. This is a world of opportunity. From enabling large enterprises to accelerate digital transformation to helping disruptive start-ups to take off, KPMG professionals know insights reveal new opportunities.
Learn more about KPMG firms' telecommunications practice or contact a KPMG professional who is ready to help you address new challenges and drive growth.