ADL also observes that operators’ production models are changing dramatically. With the need for better customer experience, ongoing innovation will drive networks and IT resources to become more flexible and accessible. As networks become software-driven, they will reach across borders and behave more like the software market. Operator groups will globalize their production models, while standalone operators will expand their footprint into new geographical territories based on increasingly elastic infrastructure assets.
Ultimately, the biggest market impact will come from the different types of operators that will emerge, with traditional telcos competing against asset-light players operating simple, customer-centric models.
Bela Virag, Partner at Arthur D. Little, said, “The digitalization of the telco industry has made possible a variety of strategic choices. Some will leverage synergies from globalized production models, while some will become exceptionally lean local players. Some will go asset-light, while others will remain asset heavy. Some will master the B2B2x opportunity, while others may ignore it altogether. It is these choices that operators face regarding their configuration that will drive them to be less look-alike than they are today.
“Ultimately, there are multiple forces that will drive operators to take on much greater design responsibility for their IT, network and services.”
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