Global Telecoms Digital Playbook Ey

Global digital
telecoms playbook
About this document
1
Purpose
Operators need to move from being
communication service providers (CSPs) to digital
service providers (DSPs). The Global digital
telecom playbook and EY’s advisory services can
help operators with this transformation.
Target audience
Quad-play operators
Triple-play operators
Adjacent industry service providers
2
3 Content
Communication
service provider
EY point of view
Digital solutions
Digital service
Industry challenges provider
p01 Macro context: markets and customers
p08 Telco 2020: the future

Contents
p15 Telco segments and digital maturity
p18 Value chain elements deep dive
p29 Solutions and mapping to digital offerings
p41 Digital maturity modeling toolkit
p45 EY capabilities
Macro context: markets and customers
Markets and industry stakeholders
Commoditization Saturation Alternative

Commoditization Limited acquisition Alternative
led growth products and
business models
Commoditization
Market dynamics
Challenges Opportunities
• Overall loss of velocity due to slow growth led by declining acquisition • Differentiation and loyalty-building through customer
or upsell Customer experience excellence
• Rising expectations of service with the fast-evolving digital customer • Leverage the M2M space by forging strong partnerships with network
management and software platform providers
• The huge digital divide in emerging markets offers immense potential
for the next wave of growth
• Decreasing agility induced by years of legacy • Operational effectiveness through state-of-the-art processes,
• Increasing pressure on margins with declining prices Organization technology, partnering and culture shift
• Fragile revenue market share with new business models popping up
• Consolidation in industry and pressure to realize group synergies
• Cost pressures mounted by advancing network technologies • Leverage capabilities to create own OTT monopolies
• Paralysis due to certain regulatory environments Ecosystem • B
► ecome enabler champion (e.g., client management) for entire ecosystem
• Unknown competition with the advent of digital
• Loss of customer ownership to OTT and OS players
2 | Global Digital Telecoms Playbook

Markets and industry stakeholders
Industry stakeholders dynamics
Stakeholders
Customers Equipment and

Internet players/OTTs
technology providers
• Digitally evolved • Fringe cost model • Advancing technology
• Higher service expectation • Lower time to market • Expensive upgrades
• Low loyalty • More innovative • Omni-channel reach
• Global customer reach
Regulatory authorities Payment associates Device manufacturers
• Compliance inducing • Aggressive independent • Declining dependence on

critical delay payment platforms operators for bundling
• Regulatory tightening • R
► egulatory bottlenecks for • Customer choice evolving from
• Artificial spectrum scarcity telcos as banks connectivity to devices to OS

Globally, key digital trends have triggered operators’ transformation toward being
digital service providers
1 Over-the-top
Content Distribution Connectivity Screen User
App store/ App store/ Internet Software/ Consumer

Apps Services Telephony Devices Discovery
retailing retailing access platform insight
Mobile operators are now open and receptive to partnering with

OTT service providers and exploring new revenue oportunities.
2 Big data
• Telecoms is both a consumer and provider of big data services.
• Telecoms opportunities with big data:
Targeted product and New business models Network experience Proactive
Focus areas marketing offers enablement optimization data strategies
Data mart provider for Platform provider for Provide insights to partners Suite of services
customer data sets information processing for improving servicesg catering to third parties
Exponential growth in the volume and velocity of data

generated is creating huge opportunities in big data.

3 E-payments 4 IoT/ M2M

With the advent of the digital customer, CSPs will have to invest in New business opportunities are emerging from the possibility of connecting
digital payments new devices and industriess.
Security
and surveillance
NFC-
enabled
handset NFC
Mobile subscription fee and/

potentially eWallet fee
Transportation Logisitics
Customer Carrier and logisitics
card holder and mobile subscriber
Potential rental fee for Potential rental fee for UICC

slot on UICC card slot for an eWallet application
Medical
Annual credit card fee and health care
and potential eWallet fee
Industrial
and energy
customer pays
merchant for product
Trusted Service
Trusted service manager
Manager
(TSM)
interchange fee for Potential rental fee per

transferring funds customer for updating
data on card
Merchant Customer’s bank
Customer’s Bank
Internet of
New for eWallet
Things
Telcos
Telco’s to
to provide
provide
communication infrastructure
communication infrastructure

5 Mobile Advertising 6 Cloud computing

Large latent mobile advertising opportunities are still untapped Cloud-based infrastructure presents opportunities to acquire
in many parts of the world. large-scale flexibility quickly.
Media Third-party Third-party

Advertising
channel and Campaign
campaign Ad sales Technology Targeting Ad service
advertising analytics
creation
services
Manage Provide Collect and

Create Provide
the channel customer Run the provide
campaign technology
on which Sell the ad intelligence ad serving campaigns’
and advise for ad
advertising inventory for ad engine results to
announcers provisioning Delivering cloud
is displayed delivery announcers

Customer exposure to host of digital interfaces is increasing rapidly
Customer 2.0 is forcing ecosystem players to provide digital interfaces and consistency of digital experiences across channels
E-wallets Social
Word of media
VAS mouth
Ch
Ch
ce
ce
Online
rvi
rvi
an
an
communities
ne
ne
Se
Se
Voice l Video on
l
Traditional demand
media
Customer 1.0 Customer 2.0
Chat
Data
Music on
Organization demand Organization
E-care Online
Call centre Traditional sales
sales Digital
Traditional marketing
marketing

Telco 2020: the future
Looking ahead: digital will transform the 2020 revenue mix
Operator perceptions of 2020 revenue mix Industry M2M forecasts
Q. What proportion of revenues do you believe digital services will account for at M2M revenue forecast, 2014-19
your organization in five years’ time? (Please select one.)
US$b US$b
Connectivity
% respondents support platform,
6.3
Mobile network
0%-5% 19 traffic, 3.8
70
Service
enablement 60
6%-10% 13 platform, 29.7
50
40
11%-15% 19
30
16%-20% 20
16
Service wrap,
383.3 10
21%-25% 13 0
2014 2015 2016 2017 2018 2019
25%+ 22 Operator revenues Other ecosystem players
0 10 20 30 Source: GSMA Source: Ovum

Source: Ovum
Operators worldwide predict a marked shift in their revenue mix by 2020 Mobile ecosystem revenues 2020 forecast
Operater share = 50%
“Digital services currently account for 3% of

revenues. In five years’ time, this will rise to
10% or the low teens due to the provision of
66% services in security surveillance, smart city
0% 20% 40% 60% 80% 100%
and enterprise services.”
Network infrastructure Components Devices Apps, content, advertising Operators

Source: EY research
Proportion of respondents that see digital revenues accounting for more than 10%
of overall revenues by 2020

Supply and demand dynamics create a range of 2020 scenarios
Innovation is likely to hinge on collaboration and competition, as regulatory attitudes and network upgrade programs
evolve in new directions
Evolving industry dynamics
2005 2010 2015 2020 scenarios

WAP-based Mobile operator Partnerships drive operatorservice
Mobile financial Move to tiered data, PAYG cloud, Vertical collaboration with OTTs to
mobile content sub-brand creation
service launches family and shared data differentiate packages
services launches
Operator service
innovations
Mobile operator Shift beyond B2C-centric

Mass market residential business models
sub-brand Rising operator horizontal
fixed-line bundles
launches collaboration in digital services
Widening of product scope allied
to segment-specific focus Widening of use cases, customer
Vertical collaboration with tech firms to widen enterprise Vertical collaboration with tech,
service portfolios e.g., IoT, smart city types, pricing models
OTTs extend Blurring of digital categories, Increasing disruption across all

New social media and content Smartphones and app
Birth of OTTs platform e.g., e-commerce, payments, industries — blurring of use cases
platforms stores
Changing market
capabilities marketing
structures
Increasing operator differentiation

Uptick in MVNO Web giants extendinto access through network quality
Rise of mobilenetwork sharing Tower sale-and-leaseback
launches worldwide provision
Rising competition for wallet share as

Operator geographic footprint growth inconsumer and Geographic Rising in-market Rising operator appetite all playersboost scale and capability
enterprise services footprint trimming consolidation for bolt-on acquisitions
Spectrum release andre-farming

Supply-side developments
Local loop unbundling and for 3G/LTE Regulatory support forMVNOs as More holistic and pro-investment
MTR reductions
equality of access regulation merger remedy national digital policies
Bridging technologies Risk of global policy fragmentation,

Extensive 3G and fiber rollout e.g., net neutrality, data protection
enabling capex efficiency New standards and
technologies for IoT,
5G Proliferation of network technologies
Network
Wi-Fi rollout 4G rollouts begin according to use case
virtualization

Telco 2020: digitized future telecoms end-to-end journey
Get Renew/
Aware Buy Use Pay help teminate
Potential customer Visits online store, Customer visits Customer visits Customer raises Analytics identify if
discovers y
our new fills online application online for upgrade online/app channel speed issue onsocial customer likely to
product, researches form, pays amount of plan and activates to pay bill, providing channel after churn. Appropriate
across competitors. online and takes plan online. instant credit t o researching FAQs. offers are provided
online appointment your company. Customer is kept to retain customer.
for physical delivery. informed andissue is Customer posts good
resolved quickly. review on social
channel.
Digital design five year plan | Build today

Voice Of customer Internal
Strategy
Feedback Big data

Design analytics
Technology
Social listen External
Customer experience

Telco 2020: digitized future telecoms journeys
Get Renew/
Aware Buy Use Pay help teminate
Discover Word of mouth Research Select Purchase Activation
Potential customer discoversyour Gets to know about product Potential customer learns about Customer visits the website/app and Customer fills in online details and Company verifies customer information
new product. experience from other customers. your product. opts for a personalized plan. Usage makes online payment, and appointment with govt. database available online.
simulator help choose appropriate plan. for product delivery. Verification is done by delivery agent.
Online
Link leads to company Search for best Usage simulator Customer makes online
web site and blog for prices/plans through helps customer opt payment and submit KYC
detailed information research websites Finds sponsored deal for suitable plans Customer chooses details. Online appointment
with link to online store personalized for any physical delivery.
Social combination of services
media
Sees paid Facebook ad Reads posts from Looks for reviews
while browsing online for friends about great via Google search
new mobile connection experience with product
Notification
(SMS/email)
Calls
(voice/video)
Customer verifies details
to agent on the spot, and
connect is activated remotely
Home service
Customer receives activated

connection at scheduled time

Get Renew/
Aware Buy Use Pay help terminate
Change product/
First-time usage Usage Change profile Billing Payment
pricing
New customers try to find out how Customers uses products/services Customer changes the product or Customer changes the account Bill generation through mediation and Customer pays bill over e-channels
to use the product pricing to suit his/her needs information rating system. Customer receives it on reducing credit period
multiple channels
Online
Goes online to Activates Activates Customer makes online

download/use add-on pack new pack payment and submits KYC
new products Content displayed details. Online appointment Pay bill online via app,
is based on Searches for better Uploads new name
and services for any physical delivery. wallet, credits, loyalty
usage history pricing/packs and address as
points or auto debit.
Social required with proof
media
Gets a welcome
message with product
demo after activation Guided explainer Gets notification about
for first-time data usage hitting the
usage within apps data cap, with link to
add-on packs
Notification
(SMS/email)
Receive e-bill, mobile alert
and bill on app, with combined
bill for multiple connections Receive incentives on
or family connection timely payment of bill-Auto
video explantion for first bill alerts if payment pending
Calls
(voice/video)
Agent check and
validates change
Home service

Get Renew/
Aware Buy Use Pay help terminate
Proactive custom-
Proactive Social Media
Social media Customer Customer
Customer
Self care
Self care Assisted Care
Assisted Care Customer retention
ercommunication
customer communication and Communities
and communities Retention Termination
termination
Problems detected, diagnosed and Customer tries to diagnose problem Customer changes the product or Contacts customer service for support Proactive retention efforts based on Customer pays bill over e-channels
resolved without customer getting to and find resolution on his/her own pricing to suit his/her needs service quality and usage patterns. reducing credit period
know about it
Online
Customer detects an Renew customer gets a

issue, goes online to better plan and decides
browses FAQs and to continue usage
how-to videos
Social
media
Tweets@custsvc
department about
Further research leads Issues resolved quickly;
issue; retweeted
to forum where other receives acknowledgment
many times
customers offer guidance with further steps on email
by followers
Notification on problem resolution
(SMS/email)
Analytic to identify likely-to- Terminating customer clears dues
System detects
churn customers triggering and schedules appointment for
degradation Customer provided proactive etention through device recovery if applicable;
performance and with offer to communication to customers Online refund of any security
applies automated compensate for with special offers deposit. Account settled and
resolution; customer loss in performance
Calls informed about
connection terminated
(voice/video) problem and

resolution applied
Issues resolved Customer requests for

through video chat termination online
Home service

Telco segments and digital maturity
Telecoms segmentation and digital maturity
Segments
Established Transformers Maturing builders Builders Pioneers
• Oldest operators in the • Usually incumbents/ • Often regional or • Often regional or • Market disruptive players
market incumbent challengers in national players in national players in
Characteristics
• New and path breaking

• Carrying extensive the market growth markets growth markets business/operating
assets and legacy • Medium to large • Battling increased • Battling increased models
systems organization with agility complexity and complexity and • Customer-centric
• Large complex in their DNA competition competition organizations heavily
organizations with • Fairly high innovation in • Focused on growing • Focused on growing dependent on P2P
multiple LoBs technology and business reach and connecting reach and connecting networks
design with customers with customers
• AT&T • Verizon Wireless • MTN • Telenor • Giffgaff

Examples
• BT • Vodafone • Airtel • Reliance Jio

• Deutsche Telekom • Orange • Idea
• Telstra • Telefonica

Telecoms segmentation and digital maturity
• On the road to digital transformation, telecoms companies need to plan and strategize on how to reimagine
their business based on their current digital maturity.
• Different telecoms companies will face their own unique challenges based on their digital maturity levels
Established
High
Digital ambition subdued by high barriers to implement; digital

initiatives launched in pockets leading to low maturity
Pioneers Transformers Transformers
Digital ambition to be competitive in the market; quick to implement
given their size and scale
Digital maturity
Maturing builders Maturing builders

Moderate digital ambition; high abilities to embed digital in existing
capabilities; often disintegrated execution
Builders
Established
High digital ambition; opportunity to start from backend building up
to digitizing integrated customer interfaces
Pioneers
Builders High digital differentiation; early digital adopter and drivers of
Low
digital innovation
Low High
Implementation complexity

Value chain elements deep dive
Telecoms value chain: key elements
Network
convergent Regulatory
technology and
infrastructure
Telecoms key elements

Spectrum management
and regulatory compliance
including reporting, audits
and minimum obligations,
customer privacy and
intrusion detection
and prevention
Products Devices
and
services
Telecoms core
network elements
including operations
and maintenance End user consumption devices and
customer premise access equipment
Fulfillment, Enterprise
assurance technology
and billing
Partner
Customer
and
interface Technology elements where
ecosystem
operations Talent digital execution will happen
and
culture
Traditional telecoms elements

post- order capture through
to assurance Telecoms core network elements
including operations and maintenance
Idea to cash, ideation factory, new product Marketing including digital sales,
development, funnel management, product customer service, MACD, channel/ Hiring, training, employee engagement,
portfolio management, pricing touch point management rewards and recognition

Value chain deep dive
Network convergent technology and infrastructure
Network

Maturity

Technology Network Physical infrastructure Active Network management Ongoing optimization
selection planning setup and management infrastructure setup and O&M and expansion
Solutions for digital

Challenges EY point of view enablement
Shorter lifecycle of new • Coexistence of multiple generations of technologies will force operators to have backward compatibility • Digitized network
technologies(2G/3G/4G • Smart offload of traffic to lower cost channels will be enabled by digitization ensuring optimal usage and cost efficiencies management and operations
How to use customer • Customer-level information will allow Telcos to deliver personalized experience • Customer usage analytics
information for differentiated • Network analytics-based interventions in real-time will allow telcos to deliver superior customer experience • Customer experience
customer experience management
Absence of device eco-system • Tie-ups with device makers for rollout of devices at lower pricing to ensure usage of new technologies • Digital collaborative tools
for 3G/4G/5G design and setup
Asset tracking and • Digitization of network assets will allow automated tracking and bring true valuation for operators • Digitized network asset
management • Digitization will help reduce the cost of the inventory. management
High O&M cost contribution • Common NOC and common vendors will help reduce OPEX. • Remote digital O&M and
from active/passive • Common active/passive infrastructure for further cost reduction. self-correcting network tools
components
EY digital Digitized network Digitized Monetizing Customer

solutions asset management maintenance monitoring network data experience management

Products and services

Products
and services
Maturity

Needs analysis and Market and Product design Product Testing Pricing and Roll out and
innovation funnel concept testing and experience development distribution manage portfolio

Driving product innovation • Consumer needs will drive the next wave of innovation in product design and development. • Digital Inovation factory
• Product managers will tap the collective knowledge of a large user base to generate the next product idea through crowd sourcing and customer • Product experience
driven innovation factories. engineering
• Product design will be driven by experience needs of consumers and validated through constant experience testing and feedback looped into • Digital simulation tools
product development. • Virtual product experience
• Social listening will help discover which products and services are in demand. lab
• Automated feedback
Drive digital product life cycle • Seamless integration across partners and ecosystem for digitized management of products/services portfolio will enable focus on business • Digitize product life cycle
management outcomes like profitability, revenue growth and efficiency management
Driving pricing innovation • Scientific methods of price discovery based on demand elasticity will give rise to innovative pricing models. • Digitized demand assessment
• Telcos will also replicate freemium models. • Digitized product catalog
• Telcos will develop products and offers around bundling of mobile and fixed line services to ensure lower churn.
Competition from OTTs in • Telcos will develop platforms and increasingly invest in newer business models to capitalize on revenue opportunities like mobile advertising, • Dynamic pricing
B2B space M2M, payment services etc. • M&A, post-merger integration
• Being a provider of the IoT and personal cloud facilities positions a telco at the center of the digital consumer world, with stickiness for the other
services and applications in its portfolio.
• Development and growth in these fields will be enhanced inorganically through acquisitions and partnerships.
• Common active/passive infrastructure for further cost reduction.
EY digital Innovation through Digitized pricediscovery/ Product interface Pricing models

solutions crowd sourcing new models experience design

Fulfilment, assurance and billing
Fulfillment, Established Transformers Maturing builders Builders Pioneers

assurance and billing Maturity
Fulfilment, assurance and billing
Purchase Service provisioned Usage Bill sent Payment processing Payment complete

Building trusted billing • Independent wallets will continue to gain ground over the existing operator billing relationship. • Mobile self service and
relationship • Operators will have to move toward transparent digital means of allowing customers to manage their account. account management
• With advent of Customer 4.0 operators will have to look beyond digital bill delivery and recharges.
High time to market due • Telcos old billing systems will continue to impede launch of new offers due to long configuration time for new products or services. • Technology stacks and
to legacy billing system • Telcos will have to simplify and upgrade billing systems to handle complexities in product bundling. system configurations for
complexities and lack of • They will require convergent (triple-play or quad-play) billing that supports ease of configuration, supporting real-time charging and billing, integrated systems
integration across services and scalability. • Integrated billing system
• This will help them keep billing costs as low as possible. • Digitization to enable infinite
• Digitized menu for customers to select/de-select a bouquet of services, simulate usage and customize plans. number of portfolio
configurations
Currently assurance is at a • Customer-level assurance monitoring and reporting will be implemented by telcos; however, monetization of this investment will happen over • Customer self-assurance
service/product level a long term.
• Strategic prioritization and phased investment will help telcos get ROI.
EY digital Integrated Proactive and self-care Digital technology Digital enterprise

solutions billingsolutions fulfillment avenues strategy

Customer interface operations

Customer Maturity
interface operations
Awareness Purchase Pay Use Get service MACD Churn

Varied customer experience • Operators will synchronize their operations to be able to present a single face to the customer. • Omni-channel enablement
across business units and touch • New-age digital customer touch points will be always on (web / mobile / social), leading to multiple interactions and a greater ability to
points) influence customers.
• Cross-channel context retention will allow customers to initiate a transaction on one touch point and complete it on another.
Tedious manual process of • Telcos will increase their digital reach and integrate their acquisition process with global customer identity databases for authentication • Digital acquisition
acquiring customers and verification. • Digital supply chain
• Automation to enable faster and easier customer acquisition and on boarding process. transformation
• Regulations will be increasingly eased to enable lower costs on digitized acquisitions.
Detecting and fixing customer • Currently data from digital products is used to map usage. It will also be extended to map failure points in customer experience. • Customer life cycle
experience degradation • Using customer-specific data and mapping with larger customer base data, telcos will identify common failure points and focus on fixing management
them proactively.
• Identification of failure points will allow telcos to resolve the issue before it becomes a failure point for the customer and leads to a complaint.
Operators have a sales-focused • As customers get more digital-savvy, the share of wallet for digital services is expanding much more than core telecom services. • Dynamic pricing
approach • Hence it will become imperative for telcos to shift focus from a customer acquisition to overall customer life cycle management. • M&A, Post Merger Integration
Share of high-cost traditional • Telcos will need to develop presence across channels and control the brand image, since brand conversations and comparisons occur through a • Digital marketing
channels for customer plethora of digital touch points increasingly outside of the control of brands and traditional ATL/BTL marketing methods. • Brand monitoring
awareness in BTL is high • Operators are increasingly developing intelligent insights from existing inventory of data and using it to improve cross-sell/up-sell conversions • Social listening
through a real-time dynamic mechanism of personalized recommendations and NBAs. • Big data analytics
EY digital Omni-channel Digital Digital distribution Social

solutions enablement acquisitions transformation analytics
Talent and culture

Maturity
Talent and culture
Talent and culture

Talent strategy Sourcing and Learning and Performance Developing high Compensations
recruiting development management performance culture and incentives

Attracting new talent with • With operator’s focus shifting on digital, telcos will hire personnel with skill set specific to digital solution implementation. • Skills and competencies
digital skill set • Telcos will hire talent based on a sourcing, screening and selection process that identifies candidates with the right knowledge, skills and assessment
behaviors to perform highly complicated digitization.
Automation of all employee • Telcos will move to transform complete hire-to-retire talent life cycle management covering talent acquisition, talent development, talent • Talent life cycle mangement
interfaces retention and talent management using digital technologies.
Co existence of people with • Telcos will develop specific programs and initiatives to build a digital–oriented culture across employees. • Collaboration and productivity
digital skill set and existing tool
employees
Upgrading skills in a distributed • Telcos will use web and mobile training modules. • Cloud-based knowledge
environment • Telcos will develop cloud solution for employees knowledge management and development (within and outside organization). management portal
Developing a high-performance • Telcos will identify and develop the right organization culture inline with its values (i.e., scientifically led, patient-centric). • Employee gamification
culture with motivated • Telcos will develop scientific approach for incentive earning for employees on the right things.
employees
Impart specific skills at the • Improve employee performance by imparting knowledge, changing attitudes and improving skills for an increasingly mobile workforce • Virtual training models
right time to each employee to • A suite of integrated knowledge database with easy access
help the company
EY digital Talent Virtual Collaboration Knowledge

solutions management training models andproductivity tools management

Partner and ecosystem

Partner and Maturity
ecosystem

Identify need Check Negotiate On board Operations Settlements Manage
and search feasibility and contract management and payments partner portfolio

Building a long-term strategy • Telcos will use scientific approach to partner selection and onboarding by use of quantitative and qualitative techniques. • Partner selection framework
for partner selection and • Telcos can quickly skip the learning curve and provide a great digital experience to customers through careful selection of partners. • Partner contracting
grooming • Partner grooming and development will be a long term process with partners evolving along with the organization.
Creating an operator-partner • The customer experience and product performance can drastically change for better or for worse as soon as the customer steps out of the telco • Data security
ecosystem environment and goes into the partner environment. • Resource demand forecasting
• A better overall experience can be created by tight integration of the telco and partner systems and processes. • Partner IT system integration
Creating digital awareness • Telcos can build partner capability through long-term collaborative capability development in digital spaces. • Digitization of partner
among partners • Telcos will involve partners and their systems in earlier stages of process digitization. interfaces
Cost reduction in operations • Service providers should ensure partner capability development through training programs and IT implementation support for key systems like • Digital training
through partner efficiency ERP to ensure high performance levels.
improvement
Seamless partner payouts • Timely payments are essential to ensure positive partner relationship. • Partner performance
• Integration of variables such as product returns, performance penalties, tax changes, etc. in real time will enable one-time accurate payouts. scorecard
EY digital Digitization of Partner performance Partner IT Demand

solutions partner interfaces management systems Integration forecasting

Enterprise technology
Enterprise
tech.
Maturity
Define enterprise Plan design Design test Testing Execution Settlements Maintenance,
technology strategy framework development and payments optimization
and expansion

Legacy stacks leading to • While the Maturing builders and Builders have the edge in choosing a pre-integrated stack, the Established and Transformers will have to adopt a • Digital technology road map
disparate IT landscape organization-wide transformation to leapfrog to the latest capabilities as a unified goal. • Mobility solutions for
enterprise
Disintegrated network and • With the advent of IP-based networking, IT-network convergence is an imperative. Traditional boundaries of IT and Network need to be made • Digital architecture for future
IT elements in the age of porous to ensure a smooth transition to a well-integrated platform. Telco
convergence • Increasingly, CIO and CTO positions will converge to enable unified control.
Coexistence of people with • Telcos will develop specific programs and initiatives to build a digital–oriented culture across employees. • Collaboration and productivity
digital skill set and existing tool
employees
Transform IT to provide • Cloud solutions have gone beyond application hosting and storage. Telecoms players need to re-position themselves as solution providers, • Digital innovation factory
capabilities to business based widening their portfolio with personalized problem solving for their enterprise customers. • Go-to-market approach
on cloud
Use of Big Data and analytics • The established players have the history, information, connection and relationship with the customer to monetize the wealth of data residing on • Analytics and insights,
for newer revenue streams their network and IT systems. More and more advertisers are turning to telecoms companies as capturers of consumer movement. complex customer
• Transformers have already made an initial impact in seizing these opportunities and partnering to open new revenue streams. interactions analysis
• Digital risk evaluation, digital
diagnostics toolst
EY digital
solutions Cloud solutions Innovation factory Digital technology Big data analytics

Devices

Devices

Maturity
Access and devices

Interpret technology Assess device and Plan buy/build Device pricing, bundling Device information Maintain, optimize,
and network strategy supplier ecosystem collaborate decision and distribution flow and analytics upgrade

Varied product performance • The spurt of different OS types in the past few years has led to an increase in fragmentation of OS/device combinations. • Mobile testing lab
across devices • This means that each product that is released needs to be optimized as per the device, which is a cost to the company. • Test scenarios
• Telcos can use their experience and infrastructure capability to take a lead and help OTTs in identifying focus areas for optimization. • Issue monitoring
• integrated product testing will also include elements like network variations. • Proactive care
• OTA services
Inability to abstract device from • Usually when customers face loss of experience due to device/ interface issues they will reach out to telecoms operator to try and • Collaborated testing
network for newer IP based resolve issues. • Converged connectivity solutions (EAP
technologies • This adds an unnecessary strain on the company resources to try to resolve device issues. SIM/intelligent client)
• Operators will move towards integrated testing of devices before launch to eliminate issues at source. • Selective converged CRM
Less ARPU from M2M • Supporting an M2M eco-systems and their use in critical applications will require operators to design new processes and systems for • Cloud-based solutions
provisioning, real-time monitoring and support and billing/reporting. • OTA services
• Operators will attempt to find higher throughput applications of M2M to increase revenues. • Innovative M2M services
Transform IT to provide • Cloud solutions have gone beyond application hosting and storage. Telecoms players need to re-position themselves as solution • Digital innovation factory
capabilities to business based providers widening their portfolio with personalized problem solving for their enterprise customers. . • Go-to-market approach
on cloud
Churn (multi-SIM) possibility • Consumers have started using multiple device types (mobile phones / tablets / laptops / wearables etc.) for use at different types of the • Customer life cycle management
due to fragmented device day and for different purposes. • Device management
usage revenue streams • Each device is an opportunity for a competitor to start a relationship with the customer. Telcos will have to identify and protect against • Single sign-on
the possibility of churn through these means. • Device security
Device management — Converged Proactive care — Processes and systems

EY digital consumption and access solution devices and network designed to support
solutions connectivity devices M2M services

Regulatory
Regulatory

Maturity
Access and devices

New regulation Building regulation Regulation risk Regulation communication Customer due Implementation
policies and processes assessment and training diligence

Meeting consumer protection norms • Stringent focus of regulators for meeting consumer protection rules, privacy and security • Information security maturity assessment
• Dispute handling, managing customer experience, pricing transparency, consumer data protection and road map,
• Digital rights management capabilities
Physical filing-based compliance • Consortia lobby to introduce digital compliance, making Telcos paper-free from all three perspectives — Outside-in • Digital compliance management
(customer), inside-in (employee) and inside–out (vendor)
New digital tax issues • Emerging trend of new rules for geography-specific taxation of digital income • Digital tax management
Meeting government demands for • Governments to look at telco for assisting in law enforcement for their: • Consumer data protection
policing • Surveillance needs and Data retention • Digital law for data privacy
• Intellectual property rights violations, such as blocking of torrents
Increasing regulations for new services • Operators to be increasingly asked to follow new regulations for new services like: • Digital regulatory compliance processes
• Regulating digital content
• Regulations for new technologies — M2M, SDN, etc.
• Regulations for data protection in cloud
Regulatory uncertainty on growth of • Regulators globally are evolving their position on neutrality of access • Social listening to understand consumer
OTT services • Telcos to target partnership with OTTs, new business models and regulatory scrutiny sentiments
Managing costly regulatory compliance • Telcos to comply with regulations by building concrete process and KPIs • Digital regulatory optimization strategy
in a cost-effective manner • Improved compliance automation to manage multiple regulations and standards
Device management – Digital risk and Digital enterprise

EY digital consumption and Digital tax
solutions cybersecurity strategy
connectivity devices

Solutions and mapping to digital offerings
EY digital solution offering
Introduction
1 4
11 distinct offerings address all Benefits realization frameworks are
digital challenges across sectors embedded in each solution to ensure
and domains business outcomes are realized.
2 5
Each offering is a suite of solutions EY’s recent acquisitions bolster the
tailored to suit the needs of tools and technology partnerships
the client. required to digitize end to end.
3 Solutions are modularized to prioritize

point solutions over holistic approaches.

Digital solutions for telecoms
Mapped to EY digital framework
Analyzing Sensing
• Digital ledger management • Digital innovation • Digitized price/model
factory discovery
• Product experience • Employee gamification
engineering • Crowdsourcing
• Digitized product life
Digital risk and cyber cycle management
security
• Digital risk and cyber security Digital enterprise strategy
• Consumer data protection
• Enterprise operating • Talent management
• Device security model • Knowledge
• Big data, analytics and management
insights • Collaboration and
• Complex customer productivity tools
interaction analysis • Omni-channel
Digital law • Network cost enablement
optimization • Virtual training
• Digital law for data privacy • Skills and competencies
• Digital regulatory compliance assessment
management
• Digital compliance optimization
Digital transactions
• Due diligence
• M&A
Digital tax • Post-merger integration
• Tax advisory for cross-border

services Experience design
• Tax guidance for new services
like M2M, cloud, etc. • Customer experience • Simulation tools
management • Automated feedback
• Self care • Test scenarios
• Proactive customer care
Digital supply chain Digital technology

• Digital supply chain • Demand • Digital technology road • Digitized network
management forecasting map monitoring
• Digitize partner • Digital content • Digital architecture for • Device management
interfaces distribution future telco • Converged access
• Partner • Digital asset • Integrated billing solution
performance management Digital operations solutions • Go-to-market approach
management • Cloud solutions • Mobility solutions for
• Customer life cycle • Digital acquisition • Network asset enterprise
management • Digital distribution management
• Digital marketing • Monetizing network data
• Social listening and
analytics
The future of telecoms
Deploying tailored digital solution…delivering accelerated solutions
Critical solutions Advisory Transactions Tax Assurance
Enablers Deploying cross service line digital solutions
Good to have Grow Optimize Protect
Not relevant
Digital Digital risk
Digital Experience Digital Digital Digital Digital
Innovation enterprise Digital tax Digital law and cyber
transactions design technology operations supply chain accounting
strategy security
Shorter life cycle of new

1 technologies(2G/3G/4G)
How to use customer data and

2 insights for differentiated customer
experience
Absence of device ecosystem for

3 3G/4G/5G
4 Asset tracking and management
High O&M cost contribution from

5 active/passive components

Not relevant
strategy security
1 Driving product innovation
2 Driving pricing innovation
Competition from OTTs in B2B space

3 (e.g., Skype for business)

Not relevant
strategy security
Fulfillment and billing
1 Building trusted billing relationship
High time to market due to legacy

2 billing system complexities and lack
of integration across services
Currently assurance is at a service/
3 product level

Not relevant
strategy security
Varied customer experience across

1 business units and touch points
Tedious manual process of acquiring

2 customers
Detecting and fixing customer

3 experience degradation
Operators have a sales-focused

4 approach
Share of high-cost traditional

5 channels for customer awareness in
BTL is high

Not relevant
strategy security
Talent and culture
Attracting new talent with digital

1 skill set
Coexistence of people with digital

2 skill set and existing employees
Upgrading skills in a distributed

3 environment
Developing a high-performance
4 culture with motivated employees
Impart specific skills at the right

5 time to each employee to help the
company

Not relevant
strategy security
Building a long-term strategy for

1 partner selection and grooming
Creating an operator-partner
2 ecosystem
Creating digital awareness among

3 partners
Cost reduction in operations through

4 partner efficiency improvement
5 Seamless partner payouts

Not relevant
strategy security
Legacy stacks leading to disparate IT

1 landscape
Disintegrated network and IT

2 elements in the age of convergence
Transform IT to provide capabilities

3 to business based on cloud
Use of big data and analytics for

4 newer revenue streams

Not relevant
strategy security
Devices
Varied product performance across

1 devices
Inability to abstract device from

2 network for newer IP-based
technologies
3 Less ARPU from M2M
Churn (multi-SIM) possibility due to

4 fragmented device usage
Varied product performance across

5 devices

Not relevant
strategy security
Regulatory
1 Meeting consumer protection norms
Meeting government demands for

2 policing
Increasing regulations for new

3 services
Regulatory uncertainty on growth of

4 OTT services
Managing costly regulatory

5 compliance in a cost-effective and
manner

Digital Maturity Modeling toolkit
Tools and frameworks
At EY we work collaboratively, bringing together experience across advisory, transaction, tax and assurance to deliver digital services. EY has developed an
extensive set of tools and frameworks to enable the digital journey for customers
# Tool/Framework Description
1 Digital Transformation Framework to approach digital
2 Digital Portfolio Maturity Assessment Maturity model toolkit
3 Social Media and Digital Diagnostics Tool Tool to assess the digital and social media journey
4 Customer Analytics Framework Customer Insights Tool
5 Crimson Hexagon Social listening and analytics tool
6 Customer RoI Parameters to be considered while deriving RoI
7 SEO Framework Parameters for SEO strategy
8 Digital Realization Framework Framework for digital transformation
9 Social Media Governance SM governance framework
10 EY Social Community Maturity Model Assess social media maturity

Assess how efficiently engagement in and handoffs between distribution
11 Channel Engagement Maturity channels happens
12 Innovation and Digital Realization™ Framework Customer engagement and innovation questionnaire
13 Digital Diagnostic Tool and Methodology Digital diagnostics to identify interventions and build road map

Maturity model toolkit: a snapshot
Business process characteristics

Maturity stage
Branding Marketing- Campaigns, communication, customer insight Products, services and new product development
and analytics
Digitally transformed and 1. Use of automated sentiment analytics across social media to track and 1. Digital strategy is linked to business outcomes. 1. Accepts payments for products and services via social commerce,
best in class. Infused digital understand the attitude of consumers toward brand. mobile commerce and electronic wallets.
2. Use of analytics and customer insights before and after every campaign
throughout the organization. 2. Consumer is the co-creator of the brand. to monitor KPIs. 2. Products and services are recommended to online visitors/customers by
Leveraging digital for using online behavioural analysis and “mood recognition”
Leading
3. Global benchmarks and best practices as a KPI for measuring 3. Digital and social culture at an enterprise level.
competitive advantage. technologies.
brand sentiment. 4. People, processes and technology aligned to digital objectives.
3. Monitors social media (sentiment analysis) for purchasing signals and
4. Consumers are brand advocates and have a high loyalty and affiliation
trigger-related offers to all customer segments across all digital and
with the brand touch points.
non-digital channels.
4. Leverage digital technology for rapid prototyping and visualization of
new products.
Leveraging digital 1. Integrated customer analytics, customer segmentation and targeting, 1. Leveraging digital and social for brand building and acquisition as one of 1. Allows customers to purchase products and services in a one-click,
successfully, driven by top campaign development and management by using digital CRM tools. the primary objectives. simple experience through their preferred digital channels: social medias
Established
leadership. Clear road map (Facebook), e-commerce portals (eBay and Amazon), aggregators (Mon-
2. Strive to achieve a uniform customer experience across, platforms, 2. Higher brand recall and loyalty.
and on parwith competitors. eysavingexpert.com) as well on our website and via smartphone apps.
devices, channels throughout customer life cycle. 3. One of the buzziest brand on social media.
2. Websites and mobile applications are integrated with popular mobile and
4. Very likely to enjoy higher positive sentiment. social networks.
5. Leverages analytics at every stage for drawing the next line of attack.
Working extensively with 1. Introducing campaigns, crowdsourcing, tools and digital properties to 1. Co-creating marketing campaigns with a target set to find 1. Communicate with customers and collect their feedback on website and
fans, followers, external co-create the brand. new customers. social media (Facebook, Twitter).
Collaborative
partners and internal public 2. Leverage free digital content (e.g., youtube videos) and digital gaming 2. More focus on establishing customer relationship 2. Leveraging digital for consumer dip stick analsis, polls, feedback for
towards a higher brand around brand, products and services to interact with customers and improving existing products and services and new product development
3. Reach out to influencers and a wider support base for brand impact
impact and better CX. enhance their experience. and reach. 3. Seeks customer feedback via websites, online communities, social media
Exploring and experimenting and mobile apps after a sale to keep the discussion going and recom-
with digital to achieve 4. Use digital technology to drive collaboration, knowledge sharing, and
mend similar or complementary products and services.
idea development and promotion.
objectives
Enhancing digital capabilities 1. May have recently established digital properties across channels and 1. Presence on select social channels but lack of focus on brand impact, 1. Leverages existing online marketplaces to sell products and services.
Developing
in pockets but not yet platforms. acquisition or CRM. 2. Accept all traditional payments means and allows online transactions to
realizing significant value 2. Push information about company, products and promotions through 2. Building web and business analytics capabilities. be paid via payment networks (PayPal, Amazon, Google Checkout).
from investments. social media (Facebook, Twitter) and online advertising majors
(Google, Yahoo!).
Little focus or investment in 1. May broadcast information about our company and offerings through 1. Not enough investments in creating digital touch points 1. Has web presence that provides information on products and services.
digital. No clear leadership mass email, our website and social media presence 2. Yet to initiate digital journey 2. Has built e-commerce capabilities with payment gateway and backend
for digital and lagging 2. Would have recently initiated digital journey for brand impact logistics
Basic
3. Heavy dependencies on ATL and traditional media

behind peers.
3. Recommends, Cross sells products or services to online customers
through engine

Maturity model toolkit: a snapshot
Business process characteristics

Maturity stage
Sales Customer care Connected workforce Digital HR
Digitally transformed and 1. Target product and service recommendations to 1. Use of innovative servicing channels like intelligent 1. Gamification for training, making work fun and 1. Seamless integration between career website and
best in class. Infused digital online visitors/customers by using online FAQs, virtual assistants, click-to-chat and changing behaviors. other job search sites (LinkedIn, Monster.com) to en-
throughout the organization. behavioral analysis and “mood recognition” click-to-call. able prospective employees to apply using existing
2. Internal social network for co-creating, sharing,
Leveraging digital for technologies. social networks credentials.
2. Encourage self-help peer-to-peer forums for building sense of community, building employee
Leading
competitive advantage. 2. Selling via time-based offers and cyber couponing on customer service and queries. loyalty and networking (Yammer). 2. Leverage simulated reality training to improve
social media time-to-competency by aligning training efficiency
3. Proactively scan web and reach out to customer for
and the employee interests and skills.)
3. Monitor social media (sentiment analysis) for any negative sentiments, customer requirements
purchasing signals and trigger related offers to and other fulfillment.
customer segments across all digital and non-digital 4. Establish social CRM KPIs and business objectives
channels focused on lowering cost of servicing.
Leveraging digital 1. Digital fulfillment and new customer acquisition 1. Proactively use social media (Facebook, Twitter), 1. Telepresence and video conferences are standard 1. Online tools for employee performance evaluation
successfully, driven by top (CAF) via digital channels complaints aggregator sites (e.g., Complaints board) ways to conduct business. and feedback.
and user communities to address complaints with
Established
leadership. Clear road map 2. No dependencies on brick-and-mortar shops for 2. Leverage collaboration and ideation environment/ 2. Prospective employees can chat real-time with ex-
and on par with competitors. immediate resolutions. platform to crowd-source ideas and insight to help isting employees or get in touch via forums or social
subscribing to the network, change plans / tariff, buy
VAS or update personal details. 2. Establish a dedicated social media customer griev- strategic initiatives (e.g., IBM JAM). media (Twitter and Facebook page).
ance cell with minimum TAT and SLAs.
3. Salesforce equipped with smartphones and tablets
to perform sales tasks and process orders and pay- 3. Prioritize engagement on a digital channel based on
ments on the go or at physical locations sentiment analysis (Twitter sentiment, socialeyez.
com).
Working extensively with 1. Test their ideas and designs on social media and 1. Customers can interact with the content posted 1. Leverage telepresence/video conferencing capabili- 1. Organize interactive online training sessions using
fans, followers, external collect feedback using social media analytics about company or offerings (Facebook “Likes,” ties to all employees to support remote collaboration WebEx and GoToMeeting.
Collaborative
partners and internal public comments) and share it on their social networks and reduce travel. 2. Communicate company news, mission, values and
2. Sales force leverages mobile SFA applications that
towards a higher brand (Facebook, LinkedIn) and via email. 2. Provide online tools for collaboration, instant mes- life through social media and blogs and build com-
provide access to client, contact and pipeline infor-
impact and better CX. mation and proactively notify them of upsell and 2. Review comments received on web and social media saging project management, sharing ideas, knowl- munities to engage with prospective employees.
Exploring and experimenting cross-sell opportunities presence (Facebook, Twitter) and via email to create edge base among teams and individuals.
with digital to achieve customer satisfaction reports.
objectives
Enhancing digital capabilities 1. Review industry benchmarks, customer feed- 1. Customer service through standard complaint pro- 1. Allow employees to access the company network 1. Post job ads on social media (Facebook, Twitter) and
in pockets but not yet back, price comparison websites and the feedback cess (mail, email, phone). remotely. professional networks (LinkedIn, Doostang).
Developing
realizing significant value received from social buzz to ensure correct price 2. Yet to establish Social Media CRM cell for the brand. 2. Support and encourage flexible working programs 2. Online tests for recruitment and online training
from investments. positioning where appropriate and provide employees with the modules available.
3. Lack of Governance Framework, Escalation Matrix,
2. Process most of the orders and fulfillment requests necessary mobile infrastructure such as laptops and
Crisis Matrix and ORM on Digital Media.
manually smartphones.
Little focus or investment in 1. Based on product strategy, the brand recommends 1. Use of basic digital servicing channels (online FAQ, 1. Provide laptops and mobile phones to some employ- 1. Posts new positions on career website or internet job
digital. No clear leadership complementary products or services via sales force, email, web forms). ees, on a discretionary basis. boards ( Monster.com ).
when users interact with digital channels
Basic
for digital and lagging 2. Servicing experience is not consistent across all 2. Some meetings via conference calls. 2. Standard application process via career website.
behind peers/ platforms. 3. Face-to-face interviews and training courses.
3. Heavy dependencies on brick-and-mortar stores for
fulfillment.

EY capabilities
Case studies
Client Background Our Contribution
• The client is the No. 3 operator in France with 7,500 employees, 650 • Understanding of the customer behaviors on the main customers’ touch
branded shops and 12 million customers. points (physical shops, call center,dematerialized channels, etc.)
• Beyond the price war since the arrival of Free on the mobile market, the • Very fast decision-making based on the simplification of the customer
Tier 1 client wants to differentiate through digital CE. experience
European operator • The client wants to adapt its offers, process and organization to • New methodologies of project management, from “the customer stories” to
fast-changing customer demands and expectations in the new digital the “Minimum Viable Product” witha three month cycle to assist in
paradigm: customization, self-sufficiency, touch point consistency, implementation
multi-screen and socialization.
• The client engaged EY with an intent to shift the customer service paradigm • Transformation of governance of digital channels
through digitization in face of declining market dominance. • Key risks and controls to manage digital interfaces
• Streamlining social media channels
Tier 1
operator in New Zealand
• The client was deploying a large-scale digitization project that will • Significant lead time reduction for activation
revolutionize telecoms in the country. • Paperless activation a first in India
• EY was engaged to design the GTM strategy and a digital operating model • Customer experience as a differentiator using digital approach
for customer operations. • Designed digital concepts
Greenfield telecoms
operator in India
• The client wanted to deliver significant productivity benefits and improve • Assisted in delivering significant, quantified benefits identified through
customer service to achieve competitive advantage in the marketplace. process redesign with annualized benefits of approximately $650m achieved
• The wider client program (Project New) involved all the major business units through productivity improvements and reductions in costs, transaction
Tier 1 within the organization, whereas this engagement relates only to the times, variance and rework
operatorin Australia Mobiles, Broadband and Bundles product offerings.

EY global advisors
Prashant Singhal, Global Telecoms Leader Frederic Huet, Partner, UK
Industry expert, leading transformations for operations and Network Convergent strategies for both telecoms and Media, as well as
selection, pricing, distribution and launch strategy convergent
technology and
due diligence and pre-due diligence
infrastructure
Amit Sachdeva, Global Telecoms Advisory Leader

Products and Bart Van Droogenbroek, Global Telecoms Tax Leader,
services
Luxembourg
Industry advisor, leading transformations for operations and
Supply chain management, as well as financing, holding
selection, pricing, distribution and launch strategy
and intellectual property structures through Luxembourg
Fulfillment
assuranceand
intermediate entities
billing
Robert Heukamp, Executive Director, France Praveen Shankar, Partner, UK

Customer
Strategic transformation projects in telecoms and media interface
Leads the UK and Ireland supply chain team in the telecoms,
operations
sector, pushing topics like 4G, FTTH, IPTV, DVB-T, etc. media and technology industry sector
Talent and
culture
Vincent Douin, Executive Director, France Anurag Malik, Partner, India

15 years of experience in telecoms, with capabilities/ A decade of HR consulting experience with CEOs and HR heads
experience in emerging markets, marketing and sales strategy Partner and of more than 100 organizations globally and across almost all
ecosystem
and go-to-market sectors
Adrian Baschnonga, Associate Director, UK Enterprise

technology
Joongshik Wang, Partner, Singapore
Lead analyst at Global telecoms center, responsible for EY’s Capabilities/experience in commercial due diligence,
thought leadership output turn-around strategy, digital business and strategic marketing
in telecoms and media industry, payment and retail industry
Devices
GK Anand, Director, India Shilpa Singhai, Senior Manager, India
Customer experience and service strategy design, business- Regulatory Industry expert, leading transformations for operations and
wide cost reduction, IT strategy and transformation selection, pricing, distribution and launch strategy

Acknowledgements
Shilpa Singhai, Senior Manager, India
Industry expert, leading transformations for operations and

selection, pricing, distribution and launch strategy
Ankit Srivastava, Senior Consultant, India Kumarmangalam Moondra, Senior Consultant, India
Experienced in product management, customer experience Experience in GTM, cost management, process development
and sales, with a focus on digital products and customer experience transformation in telecoms
Digital Product Service Digitized Processes
Akanksha Waingankar, Senior Consultant, India Parishrut Jani, Senior Consultant, India
Experience in leading the sales process for B2B services, Experience in digital and social media, delivering strategy,
including strategy development and salesforce training in planning and execution with analytics
telecoms
Digital Sales and Distribution Digital Marketing

Glossary
Acronym Term Acronym Term
ARPU Average Revenue Per User OTA Over-The-Air
CSP Communication Service Provider OTT Over-The-Top
EAP Extensible Authentication Protocol P2P Peer-To-Peer
IoT Internet Of Things PAYG Pay As You Go
M2M Machine To Machine PMI Post Merger Integration
MACD Modify Add Create Delete SDN Software Defined Network
MVNO Mobile Virtual Network Operator SEO Search Engine Optimization
NBA Next Best Action VAS Value Added Services
NOC Network Operations Center VOC Voice Of Customer
O&M Operations and Maintenance WAP Wireless Application Protocol

EY | Assurance | Tax | Transactions | Advisory
About EY
EY is a global leader in assurance, tax, transaction and advisory
services. The insights and quality services we deliver help build trust
and confidence in the capital markets and in economies the world
over. We develop outstanding leaders who team to deliver on our
promises to all of our stakeholders. In so doing, we play a critical
role in building a better working world for our people, for our clients
and for our communities. EY refers to the global organization, and
may refer to one or more, of the member firms of Ernst & Young
Global Limited, each of which is a separate legal entity. Ernst & Young
Global Limited, a UK company limited by guarantee, does not provide
services to clients. For more information about our organization,
please visit ey.com.
© 2015 EYGM Limited.

All Rights Reserved.
EYG no. EF0157
ED None
This material has been prepared for general informational purposes only and
is not intended to be relied upon as accounting, tax, or other professional
advice. Please refer to your advisors for specific advice.
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Global digital

p08 Telco 2020: the future

p18 Value chain elements deep dive

p29 Solutions and mapping to digital offerings

p41 Digital maturity modeling toolkit

Commoditization Saturation Alternative

2 | Global Digital Telecoms Playbook

Industry stakeholders dynamics

Customers Equipment and

Regulatory authorities Payment associates Device manufacturers

• Compliance inducing • Aggressive independent • Declining dependence on

3 | Global Digital Telecoms Playbook

App store/ App store/ Internet Software/ Consumer

Mobile operators are now open and receptive to partnering with

Exponential growth in the volume and velocity of data

4 | Global Digital Telecoms Playbook

3 E-payments 4 IoT/ M2M

Mobile subscription fee and/

Potential rental fee for Potential rental fee for UICC

interchange fee for Potential rental fee per

5 | Global Digital Telecoms Playbook

5 Mobile Advertising 6 Cloud computing

Media Third-party Third-party

Manage Provide Collect and

6 | Global Digital Telecoms Playbook

Customer 1.0 Customer 2.0

7 | Global Digital Telecoms Playbook

Operator perceptions of 2020 revenue mix Industry M2M forecasts

25%+ 22 Operator revenues Other ecosystem players

0 10 20 30 Source: GSMA Source: Ovum

Operater share = 50%

“Digital services currently account for 3% of

and enterprise services.”

Network infrastructure Components Devices Apps, content, advertising Operators

9 | Global Digital Telecoms Playbook

Evolving industry dynamics

2005 2010 2015 2020 scenarios

Mobile operator Shift beyond B2C-centric

OTTs extend Blurring of digital categories, Increasing disruption across all

Increasing operator differentiation

Rising competition for wallet share as

Spectrum release andre-farming

Bridging technologies Risk of global policy fragmentation,

10 | Global Digital Telecoms Playbook

Digital design five year plan | Build today

Feedback Big data

11 | Global Digital Telecoms Playbook

Discover Word of mouth Research Select Purchase Activation

Customer receives activated

12 | Global Digital Telecoms Playbook

Goes online to Activates Activates Customer makes online

13 | Global Digital Telecoms Playbook

Customer detects an Renew customer gets a

(voice/video) problem and

Issues resolved Customer requests for

14 | Global Digital Telecoms Playbook

Established Transformers Maturing builders Builders Pioneers

• New and path breaking

• AT&T • Verizon Wireless • MTN • Telenor • Giffgaff

• BT • Vodafone • Airtel • Reliance Jio

16 | Global Digital Telecoms Playbook

Digital ambition subdued by high barriers to implement; digital

Maturing builders Maturing builders

17 | Global Digital Telecoms Playbook