Telco 2.0 Transformation

The Telco 2.0 Transformation stream provides ongoing research on how to successfully drive change enabling new 'digital' opportunities and revenue streams in telecoms, and redefine the agility and cost base of the core business.

Telco 2.0 Transformation Stream Cover Image

The programme is led by Chris Barraclough, Chief Strategist, STL Partners/Telco 2.0, supports both telcos/CSPs and their partners, and comprises:

A stream of c.10 exclusive new briefing reports a year (see here for more details)
A searchable existing database including three 150 page strategy reports and 50 further executive briefings and presentations (see below)
Sessions at our executive brainstorms, and other networking and information sharing activities.

To input to the agenda or find out more about how to subscribe, please contact us directly at .

New Content (Use "Search" or "more articles" to find more)

AT&T: Fast Pivot to the NFV Future

In 2014, AT&T launched its Domain 2.0 Programme to virtualise 75% of its network functions by 2020. So how is it going, and what are the lessons for others on the complex journey to the virtualised / agile Telco 2.0 digital vision? (February 2016, Telco 2.0 Transformation Stream, Future of the Network Stream, Cloud and Enterprise ICT Stream)

Digital Partnering: Success Factors and AT&T Drive Case Study

Partnering is a key competence for building telco digital services offerings, but many past attempts have failed. So what does it take to succeed? In this briefing we review viable strategies, key success factors and barriers, and profile the highly effective approach used in AT&T’s Drive Ecosystem. (Telco 2.0 Transformation Stream, February 2016)

Connecting Brands with Customers: How leading operators are building sustainable advertising businesses

There has never been a better time for telcos to establish a profitable role as a market enabler in the mobile advertising ecosystem. STL Partners analyses how 3 telcos – Sprint, Turkcell and SingTel – lead the way in leveraging permission-based subscriber data and highlights the role that each has chosen to perform. The report assesses each company’s strategy and execution, outlines the core reasons for their success, and identifies 6 ways in which telcos can accelerate time to market with advertising and marketing solutions. (December 2015, Foundation 2.0, Executive Briefing Service, Dealing With Disruption Stream, Telco 2.0 Transformation Stream.)

The European Telecoms market in 2020, Report 2: 4 scenarios and 7 predictions

Seven predictions and four scenarios for how the industry might play out in Europe in the next 5 years: 'Digital Renaissance', 'Back to the Future', 'Commoditised Utility' and 'Telco Trainwreck'. Plus what are the take-outs for other markets? (July 2015, Executive Briefing Service, Telco 2.0 Transformation Stream.)

The European Telecoms market in 2020, Report 1: Evaluating 10 forces of change

In the first of two reports, STL Partners evaluates how several powerful forces, within and beyond the control of telcos, look set to change the shape of the European market and considers the options for how these forces might develop going forward. (July 2015, Executive Briefing Service, Telco 2.0 Transformation Stream.)

Digital Services: What is Your Digital Business Worth?

We outline our ‘proxy model’ for valuing Digital Services Businesses, based on current best practice, which has significant advantages over traditional approaches. This report, our second of two on valuation, gives a worked example of a telco’s digital business in Asia that is already worth $1bn, and includes an analysis of approaches being taken by some leading telcos today. (April 2015, Executive Briefing Service, Telco 2.0 Transformation Stream.)

Figure 11 Although BT EE is just compliant with the 2 3 3 4GHz cap it looks suspiciously dominant

The Digital Dashboard: How new metrics drive success in telco digital initiatives

Digital initiatives are an important part of the telecoms growth story. However, because they are so different to the traditional telecoms business, they require different performance metrics: a digital dashboard. In this report, we examine the importance of metrics in shaping business performance, explore the contribution of metrics to 3 telco digital success stories, and reveal how a cutting-edge approach to metrics is driving digital execution at Telkom Indonesia. (February 2015, Telco 2.0 Transformation Stream)

Valuing Digital: A Contentious Yet Vital Business

The valuation of digital businesses is vital because it drives key strategy and investment decisions, yet highly contentious, as there are many different possible approaches. In the first of two reports on this topic, we appraise the main external valuation methods, and their suitability for use or otherwise with new telecoms business models. (February 2015, Telco 2.0 Transformation Stream)

Figure 11 Although BT EE is just compliant with the 2 3 3 4GHz cap it looks suspiciously dominant

Reality Check: Are operators' lofty digital ambitions unrealistic given slow progress to date?

STL Partners' industry transformation analysis, including a recent global survey of telco executives, suggests operators' digital ambitions are rising fast but, given 9 substantial implementation challenges, too little is currently being done to engender successful industry-wide business model transformation. We also look at the lessons from NTT DoCoMo, one of the operators that has made the most overall progress towards a 'digital' model. (February 2015, Executive Briefing Service, Telco 2.0 Transformation Stream.)

$350Bn Telco 2.0 Transformation: 2015 Agenda


Major transformation is required to grow $350+Bn of new revenue in the telecoms industry by 2020. Building on 8 years of proprietary research, we outline the agenda for the Telco 2.0 Transformation stream, a new service to helps executives identify opportunities, counter threats and manage change (October 2014, Telco 2.0 Transformation Stream.)

The Telco 2.0 Transformation Index Benchmarking Report

Benchmarking comparison of 6 global players (Telefonica, Vodafone, AT&T, Verizon, SingTel and Ooredoo (formerly QTel), and implications for the telecoms industry. (July 2014, Telco 2.0 Transformation Stream)

Enterprise Mobility Framework December 2013

Faster than Facebook: how to speed up digital transformation and disruptive innovation

Digital transformation is now impacting every industry, and one of the hardest organisational challenges is developing small-scale innovations fast and managing them in large and mature organisations. Here are our recommendations and key findings from the OnFuture EMEA 2014 cross-industry brainstorm, including a summary of Facebook’s internal recipe for speedy success. (June 2014, Executive Briefing Service, Transformation Stream.)

Existing Business remains the biggest obstacle to innovation

Telco 1.0: Death Slide Starts in Europe

The latest results for Telefonica are grim, showing a 12% y-o-y revenue decline, following Orange and Deutsche Telekom’s 4% drops. This signals unequivocally that transformation is now a necessity not a luxury for European operators – and the rest of the world is not far behind. Longer term recovery is possible but not a certainty – what are the key steps? (May 2014, Foundation 2.0, Executive Briefing Service, Telco 2.0 Transformation Stream.)

Enterprise Mobility Framework December 2013

Telefonica leads Vodafone in more attractive markets


In this new report based on Telco 2.0 Transformation Index analysis we compare Vodafone’s competitive positioning with another European-centric multi-national, Telefonica. The results are surprising and instructive, showing that Vodafone faces substantial challenges if it is to grow in the foreseeable future. (April 2014 Executive Briefing Service, Transformation Stream.)

Why closing Telefonica Digital should make Telefonica more digital (and innovative)


Albeit pioneering, Telefonica’s Digital business unit as was lacked focus and combined too many clashing cultures and incompatible businesses. Our latest analysis sees the change as ‘the end of the beginning’ for Telefonica’s Telco 2.0 services, and summarises lessons for all players implementing strategic transformation. (March 2014, Executive Briefing Service, Transformation Stream.)

Are Telefonica, AT&T, Ooredoo, SingTel, and Verizon aiming for the right goals?


Operators face difficult choices on the best way to change their business models. In this note we analyse the approaches taken by AT&T, Verizon, Ooredoo, Singtel and Telefonica, extrapolate the options for all carriers, and offer a framework to help managers define the right new business model goal for their organisation. (March 2014, Executive Briefing Service, Transformation Stream.)

Telco 2.0 Transformation Index: Technology Survey

150 senior execs from Vodafone, Telefonica, Etisalat, Ooredoo (formerly Qtel), Axiata and Singtel supported our technology survey for the Telco 2.0 Transformation Index. This analysis of the results includes findings on prioritisation, alignment, accountability, speed of change, skills, partners, projects and approaches to transformation. It shows that there are common issues around urgency, accountability and skills, and interesting differences in priorities and overall approach to technology as an enabler of transformation. (November 2013, Executive Briefing Service, Transformation Stream.)

Telco 2.0 Transformation Index Tech Survey Cover Small

Finding the Next Golden Egg: Sourcing Great Telecoms Innovations

A step-by-step guide for telecoms executives seeking to innovate and develop compelling new services to compete in the 'services layer', and develop a new telecoms business models to replace the contracting voice and messaging revenue streams with new revenues from new products and services and customers. (September 2013, Executive Briefing Service, Transformation Stream.)

Telco 2.0 Transformation Index: Understanding Telefonica's Markets and Market Position

This extract from the Telco 2.0 Transformation Index shows our analysis of Telefonica's markets and market position, including economic and digital market maturity, regulation, customers, competition and pricing. It is one part of our overall analysis of Telefonica's progress towards transformation to the Telco 2.0 business model. The other parts of the Telefonica analysis are: Service Proposition, Finances, Technology, Value Network, and an overall summary. Telefonica is one of the companies analysed and compared in the first tranche of analysis that also addresses Vodafone, AT&T, Verizon, Axiata, SingTel, Etisalat and Ooredoo (formerly Qtel). (August 2013, Executive Briefing Service, Transformation Stream.)

Telefonica Telco 2.0 Transformation Index Small

Telco 2.0 Transformation Index: Benefits, Products, Packages and Pricing

The Telco 2.0 Transformation Index helps telcos, their partners and investors improve returns on strategic investments and activities. This page details its benefits, who it is for, and product packages. (January 2014, Executive Briefing Service, Transformation Stream).

Telco 2.0 Transformation Index: Methodology and Approach

The Telco 2.0 Transformation Index has been developed using proprietary 'tried and tested' analytical methods and approaches that have evolved throughout seven years of market-leading research by the Telco 2.0 Initiative. This page gives an overview of the approaches and some example content. (August 2013, Executive Briefing Service, Transformation Stream.)

Digital Transformation 2.0: Report and Analysis of the EMEA 2013 Event

Digital Transformation 2.0: A summary of the findings of the Digital Transformation session at the New Digital Economics Executive Brainstorm, EMEA, held at the Wyndham Grand Hotel, London, on the 5th June 2013. The Brainstorm covered Digital Transformation Strategies, meeting changing customer needs through disruption, and opportunities in Cloud, SDN and Cybersecurity. (June 2013, Executive Briefing Service, Transformation Stream.)

Transformation 2.0: Event Summary Analysis Presentation

Digital Economy: who will prosper in 'The Great Compression'?

Value is squeezed out of industries as they become increasingly digital - i.e. accessed by mobile and online, driven by data and defined by software. We call the collective economic impact of this pressure ‘The Great Compression’. But which companies will survive and prosper - and how? 90% of the Execs at our Silicon Valley brainstorm identified ‘management mindset’ as a key factor in Telecoms, Media, Finance and Retail. Our analysis and a detailed report of the findings of the Digital Economy session at the NDE Executive Brainstorm, Silicon Valley, held at the InterContinental Hotel, San Francisco on the 19th March 2013. (May 2013, Executive Briefing Service, Transformation Stream).

Scale of Transformation Needed April 2013

The Great Compression: surviving the 'Digital Hunger Gap'

In the next 10 years, many industries face the 'Great Compression' in which, in addition to the pressures of ongoing global economic uncertainty, there is also a major digital transformation that is destroying traditional value and moving it 'disruptively' to new areas and geographies. For the incumbent industry players we call the near-term results of this disruption 'The Digital Hunger Gap' – the widening deficit between past and projected revenues. This is our analysis of the top-level findings of the Silicon Valley Executive Brainstorm. (March 2013, Executive Briefing Service, Transformation Stream.)

10 Year Hunger Gap Mar 2013

Finance: Optimising the Telco 2.0 revenue and cost model

Structuring finances is key for the success of innovations in general and Telco 2.0 projects in particular. In this detailed extract from our new strategy report ‘A Practical Guide to Implementing Telco 2.0’, we describe the best ways to approach the management of revenues and costs of new business models, and how to get the CFO and finance department onside with the new approaches required (February 2013, Executive Briefing Service, Transformation Stream).

A Practical Guide to Implementing Telco 2.0

How can communications services providers (CSPs) transform their businesses from Telco 1.0 (infrastructure-led stasis) to Telco 2.0 (sustainable innovation-led growth)? An essential, step-by-step guide to the implementation of new Telco 2.0 business models, providing telecoms executives and their partner companies with a systematic approach to capitalise on new opportunities and neutralise potential threats. The report outlines robust frameworks and methodologies for selecting the right Telco 2.0 strategy for each organization, identifying and implementing the key opportunities, and avoiding expensive and time-consuming mistakes. (December 2012, Telco 2.0 Transformation Stream)

Europe's brutal future: Vodafone and Telefonica hit hard


In our recent briefing European Mobile: The Future's Not Bright, It's Brutal, we predicted that European operators faced a grim future. New figures from Vodafone and Telefonica suggest that, unfortunately, the grim future is arriving fast. (November 2012, Executive Briefing Service, Transformation Stream.)

Strategy 2.0: From infrastructure to innovation and customer intimacy


In this preview from Part 2 of 'A Practical Guide to Implementing Telco 2.0', we outline the structural, cultural and strategic challenges of building new competences, and a service development process designed to overcome classic industry weaknesses in infrastructure businesses such as telcos and broadcasters. (October 2012, Executive Briefing Service, Transformation Stream).

Innovation Strategies: Telefonica 2.0 Vs. Vodafone 2.0

Telefonica and Vodafone are both European-based tier 1 CSPs with substantial revenues, cash flows and subscribers. They have both expanded beyond Europe – Vodafone into Africa and Asia and Telefonica into Latin America. However, their Telco 2.0 strategies are rather different. In this extract from our forthcoming report, A Practical Guide to Implementing Telco 2.0, we outline their Telco 2.0 strategies and their benefits and risks. (September 2012, Executive Briefing Service, Transformation Stream.)

Telefonica Strategy 2.0 Chart

Telco 2.0: Killing Ten Misleading Myths


‘Telco 2.0’ has evolved considerably since we put forward the original concept for telcos’ future success in 2006. Here we dispel ten myths and misunderstandings that have also evolved that can misdirect strategy. (August 2012, Executive Briefing Service, Transformation Stream.)

Euro telcos: fiddling while the platform burns?

Most executives across the European telecoms industry accept that the current telco business model is in decline (the ‘burning platform’), but wholehearted action to create sustainable new models is not in place. We identify the key barriers and next steps to overcome them in this top-level analysis of findings from our recent EMEA Executive Brainstorm. (July 2012, Executive Briefing Service, Transformation Stream.)

UK Services Revenues: Actual and Forecast (index)

Telco 2.0: how to accelerate the implementation of new business models

Opportunities exist for operators to support third-party businesses in Customer Profiling, Marketing offers, ID & Authentication, Network QoS, and Billing, Payments & Collection. However, our in-depth research among senior execs in ‘upstream’ industries (e.g. retail, media, IT, etc.) and telcos shows that poor communication of the telecoms value proposition and slow implementation by operators is frustrating upstream customers and operators alike. Our independent new analysis (kindly sponsored by Openet) identifies strategic customer segments for telcos building new ‘Telco 2.0’ business models, key obstacles to overcome, six real-world implementation strategy scenarios, and strategic recommendations for telcos. (April 2012, Executive Briefing Service, Transformation Stream.)

Google's Advertising Revenues Cascade

Telco 2.0: Understanding Telco 2.0 opportunities and how to realise them (STL Presentation)


Telco 2.0: Understanding Telco 2.0 opportunities and how to realise them. Presentation by Chris Barraclough, STL Partners/Telco 2.0 Initiative at the EMEA Executive Brainstorm (November 2011, Executive Briefing Service, Transformation Stream.)

Strategy 2.0: The Six Key Telco 2.0 Opportunities

A summary of the six Telco 2.0 opportunities to transform telco's business models for success in an IP-based, post PSTN world: Core Services, Vertical Solutions, Infrastructure Services, Embedded Communications, 3rd Party Enablers, and Own Brand OTT Services. It includes an extract from the Roadmap to New Telco 2.0 Business Models, updates on latest developments, and feedback from over 500 senior TMT industry execs. (July 2011, Executive Briefing Service, Transformation Stream).

Telco 2.0 Six Key Opportunity Types Chart July 2011

Telco 2.0 Strategy: New Growth needs New Metrics

‘What gets measured gets done’, and telcos need to use new metrics to uncover and develop new sources of value. They also need to make WAC a ‘JFDI’ initiative. These and other top level Telco 2.0 strategic themes from the May 2011 EMEA Telco 2.0 Executive Brainstorm. (May 2011, Executive Briefing Service, Transformation Stream.)

The Roadmap to New Telco 2.0 Business Models

This Strategy Report plots the transformational path that telcos need to follow to achieve the $375Bn p.a. 'Telco 2.0' opportunities. It describes the six growth opportunity areas for the Telecoms industry, identifies new categories of operators, benchmarks the primary strategies needed by each to evolve and thrive in the new industry environment, and highlights leading examples of telco business model innovation. It has 284 pages, including a 13 page Executive Summary and a detailed index. (April 2011, Telco 2.0 Transformation Stream)

$Multi-Billion Telco 2.0 Growth Opportunities in North America: Can Telcos Act in Time?

An initial summary of the key out-takes from the 10th Telco 2.0 Americas Executive Brainstorm (incorporating Digital Entertainment 2.0) held in Santa Monica, Los Angeles, October 28-29, 2010. 92% of participants agreed it is time to make either a step change in key functions (34%) or initiate a fundamental transformation (58%) in the next 12-18 months. (November 2010, Executive Briefing Service, Transformation Stream.)

10 'Innovation Principles' for success in a disrupted marketplace: 10 generic action-oriented principles of innovation which are applicable to, and adoptable by, all companies within the disrupted Telco, Media and Technology industries regardless of their vision or strategy. (September 2010, Executive Briefing Service, Transformation Stream.)

New Strategy Report: Telco 2.0 Case Directory - 5 'Use Cases', 10 Case Studies: A new 255 page report describing 5 new 'Use Cases', detailed descriptions / mini business cases for new, near term Telco 2.0 applications. The report also details 10 Case Studies from Telecoms and adjacent industries that illustrate key principles and early market progress. (May 2010, Executive Briefing Service, Telco 2.0 Transformation Stream)

New Telco Growth: is Time Running Out?: At a time when telcos are being re-rated as quasi utilities by investors, the importance of creating sophisticated and effective strategies for new growth is becoming ever more pressing. But the recent Telco 2.0 ‘Executive Brainstorm’ demonstrated that the clock is ticking fast and the opportunity could slip away from Telcos as nimbler competitors from adjacent industries take the value. (June 2010, Executive Briefing Service, Transformation Stream.)

The 7 Top Themes of Telco 2.0, Spring 2010: There was a lot of brainpower, energy and great debate at last week’s Executive Brainstorm. Here’s our top level take of emerging themes on: M2M; Bloated Broadband Economics; Google, Apple and Facebook; Leveraging Consumer Data; The Capital Markets; Smartphones and Apps; and the ‘Roadmap’ for Change. (May 2010, Executive Briefing Service, Transformation Stream.)

Telecoms 2015: New Game, New Players, but Who Wins?: The connected ‘digital economy’, underpinned by telecoms, is evolving fast. How will it play out in the next 5 years, what are the rules, and who will win? Telco 2.0 analyses some new scenario thinking by IBM and clarifies the key issues that need to be addressed.(March 2010, Executive Briefing Service, Transformation Stream.)

Shareholder Value 2.0: Investors now rating telcos as ‘utilities’. How to respond?: Financial markets now value Telco stocks for stability and Techs for growth. Telcos must deliver on efficiency promises to earn support for growth. Technology companies must prove staying power. How can business model innovation help all parties? (November 2009, Executive Briefing Service, Transformation Stream.)

Strategy 2.0: $375 Bn ‘two-sided’ market opportunity update (Part 2): An update on the potential of new ‘two-sided' business models to increase shareholder value, leverage customer data assets, and create a valuable position in delivering consumer services. (October 2009, Executive Briefing Service, Telco 2.0 Transformation Stream)

Strategy 2.0: The $375 billion opportunity - update (Part 1): In 2008 we identified a $375 billion opportunity for telecoms to help make media and other industries more efficient. We review the impact of broadband developments here. (October 2009, Executive Briefing Service, Transformation Stream)

Use Cases 2.0: Five new business models in action: Detailed explorations of new concepts for: mobile marketing, mobile money, smart grids, mobile broadband, and SME services. (October 2009, Executive Briefing Service, Telco 2.0 Transformation Stream)

The Business Case for 'Two-Sided' Telecoms Business Models: Many industry corporate strategists buy into the two-sided telecoms business model and now want to prove the quantifiable benefits to drive action. Here's an update on Telco 2.0's current data and plans. (September 2009, Executive Briefing Serivice, Transformation Stream)

The 'Two-Sided' Business Model Use Case Project: The theory of 'Two-Sided' Telecoms Business Models is becoming increasingly well known. The Telco 2.0 "Use Case" research project is analysing both actual and potential practical examples in greater detail. (August 2009, Executive Briefing Service, Transformation Stream)

7 Strategic Priority Areas for new Telecoms Business Models: In the last 12 months the fundamental question related to the '2-sided' telecoms market opportunity has changed from 'what is it' to 'how do we do it?' This Briefing report describes the key priority areas. (June 2009, Executive Briefing Service, Telco 2.0 Transformation Stream)

Pilot 2.0 - How to trial new Telco 2.0 business models (Part 1): It's important to get started, get support, and consider collaboration. As well as these common themes, alternative approaches and practical lessons from practicioners are explored. (Special Event Briefing, May 2009, Executive Briefing Service, Transformation Stream)

Introducing Two-Sided Markets: A Template For Future Growth In Telecoms?: Details the move towards a two-sided marketplace for telecoms services, and the relevance of that change to future retail, wholesale and B2B value-added services (VAS) platforms. (Jan 2009, Foundation 2.0)

A New Role for Telcos in the Digital Economy: How Telcos can avoid inevitable market decline by exploiting their core skills, assets and relationships to create new sources of growth. This key overview is a review and restatement of the original Telco 2.0 Market Study. (Dec 2008, Executive Briefiing Service, Telco 2.0 Transformation Stream)

Introductory Slideshow: Two-Sided Telecoms Business Models: A short slideshow explaining the concept of 'two-sided' telecoms business models. (Jan 2009, Foundation 2.0, Executive Briefing Service, Telco 2.0 Transformation Stream)

2-Sided Business Model Use Cases - making it tangible: Explanatory presentation and brief on a set of ‘use cases’ we're developing that illustrate how telcos might exploit the 2-Sided Business Model Opportunity. (June 2008, Executive Briefing Service, Transformation Stream.)

Telco 2.0 Business Model Map: Links and Q&As: Links and Q&As on our Business Model Map outlining areas of potential value and strategic investment for Telcos. (Mar 2007, Executive Briefing Service, Telco 2.0 Transformation Stream)

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