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Broadband World Forum

Physical Event: 12-14 October, 2021

Virtual Event: 11-15 October, 2021

2021 

Broadband World Forum

Published by Omdia in February 2023, 'The Future of Telcos and the Cloud: New Business Models and Paths to Growth for 2030' was written by Evan Kirchheimer, Research Vice President, Service Provider and Richard Mahony, Vice President, Service Provider Business Unit.  

“5G means access to newer or better apps – so let’s listen to consumers!” - Nicole McCormick, Senior Principal Analyst 5G & Broadband, Pricing & Strategy

Increased opex has placed telcos in a bind– can the cloud loosen the grip? 

Our latest Omdia report examines the importance of the RAN intelligent controller (RIC) in telecoms as the number of network configurable parameters goes into the thousands. It provides recommendations for mobile network operators (MNOs) and vendors as they work within industry initiatives such as the O-RAN Alliance to complete the open RAN standards and ensure commercial products meet the operators' network management requirements.

This report is an example of one of the many surveys, market forecasts, reports, and market data insights that make up the Service Provider Strategies Intelligence Service from Omdia. We have made this available to you for free, for a limited time only.

Simply enter your details on the right and click ACCESS NOW.

Caught between rising opex and stagnant revenue – telcos are in a bind. Omdia report The Future of Telcos and the Cloud: New Business Models and Paths to Growth for 2030 reveals expensive yet anaemic growth has become the reality for telcos globally.

Telcos must invest to enable next-generation services, but the cost of investment is not translating into operational savings for the vast majority.

➡️ Just one in ten CSPs have reduced their opex over revenue since 2012.

➡️ Of 28 major global operators analysed by Omdia, only nine reduced opex.

➡️ Only three did so in an “efficient” manner (keeping their opex/revenue ratio below the 60% threshold considered a sign of industry efficiency).

This analyst opinion is an example of one of the many surveys, market forecasts, reports, and market data insights here at Omdia. We have made this available to you for free, for a limited time only.

Simply enter your details below and click ACCESS NOW.

In a new report ‘The Future of Telcos and the Cloud: New Business Models and Paths to Growth for 2030’, Omdia analyses five key cloud-based models, and examines how cloud-based solutions have been implemented by global telcos such as Huawei, AT&T, China Mobile, O2 and BT

Telcos are caught in a bind. They must invest to enable next-generation services, but such investment comes at a cost which does not easily translate into operational savings.  

When a telco adopts the public cloud, it aims to lower the cost of running infrastructure to power its network and internal operations by transferring functions from hardware in its own data centers to software running in standardised hosted environments. But does it?

Telcos are caught in a cycle of delivering more data for less revenue

Battling to meet increasing consumer demand and embrace the latest innovations, telcos have invested heavily to shift from one generation of network to the next. While they have achieved a reduction in bandwidth cost per bit, traffic volumes have continued to rise, swallowing up any potential for revenue growth. 

Realizing opex efficiencies via cloud models

How can cloud models be the solution for a more cost-efficient means of meeting rising IT and network operations costs? The CSPs surveyed had not meaningfully migrated many of their IT and OT systems to the cloud. This could imply that cloud automation holds the key to future opex reduction and reduced infrastructure costs.   

Further cloud adoption could result in a reduction of opex as a percent of revenue from 57% in 2022 to 46% in 2030.

Buy-from
A cloud provider sells cloud services to the CSP, with the aim of moving workloads from premises-based and CSP-owned to the public cloud.

Marketplace
Cloud providers offer CSP connectivity services on their marketplaces. CSPs set up their own B2B cloud marketplace or draw on hyperscaler economies of scale as part of their B2B managed services propositions.

Sell through
A CSP resells a cloud provider’s services, often with a focus on unified communications or office productivity suites.

Side-by-side
Cloud providers and CSPs align and launch services jointly for enterprises that want their compute and connectivity suppliers to bundle relevant offers such as VPN and cloud.

Co-investment
Deep collaboration between CSPs and hyperscalers to co-develop and launch new unified services, the components of which would not be complete or able to stand alone without the others.

Through comprehensive case studies, exploring how telcos worldwide (including Huawei, AT&T, China Mobile, O2 and BT) are already working with major cloud providers such as AWS and Microsoft; Omdia reveals the challenges, successes, and relevant recommendations for cloud-based solutions to the current opex crunch.

Through comprehensive case studies, exploring how telcos worldwide (including Huawei, AT&T, China Mobile, O2 and BT) are already working with major cloud providers such as AWS and Microsoft; Omdia reveals the challenges, successes, and relevant recommendations for cloud-based solutions to the opex crunch.

Access Omdia’s report and gain insights to:   

• Learn how to create a profitable and sustainable strategy by deploying cloud in your CSP business. 
• Understand how shifting operations to cloud promises to reduce telco opex/revenue ratios by more than 10%. 
• Reduce IT estate spend by up to 20%, in IT infrastructure spend as a percentage of total IT spend with cloud. 
• Utilise the five possible business models with clouds available today to drive revenue growth and deliver new services to your end customers.

In a new report ‘The Future of Telcos and the Cloud: New Business Models and Paths to Growth for 2030’, Omdia analyses five key cloud-based models, and examines how cloud-based solutions have been implemented by global telcos such as Huawei, AT&T, China Mobile, O2 and BT