What’s In & What’s Out for Telcos in 2024? Predictions Impacting CSPs
Download eBook
One Of CSPs’ Toughest B2B2X Marketplace Problems Solved
Read blog
VicTrack’s Digital Transformation Speeds Up Time to Market and ROI
View customer success
Maximizing efficiency and innovation through NetCo and ServCo models
There is no doubt that executing structural separation is one of the most complex journeys a CSP can undertake. And, when it’s done well, it can deliver huge returns by unlocking great efficiency and attracting new investments.
Breaking up is hard to do. The rise of Netco and Servco.
Navigating structural separation: how CSPs can unlock efficiency and attract investment
Figure 3: Market capitalisation expected evolution: NetCo and ServCo versus Integrated Telco
Haifa Al Ashkar, Executive Director, CSG
"We're witnessing a paradigm shift in the telecom landscape. Opco margins are under immense pressure due to commoditization. Traditionally, telcos responded by acquiring companies to build scale and slash costs – think early 2000s. Today, however, the tide has turned. M&A activity is subdued, and instead, we're seeing a wave of disaggregation and specialization."
Source: Deloitte
Candid Conversations: Curt Minter talks about successfully partnering with customers to solve their biggest challenges
Watch interview
Transforming Telecom:
Insights from Chad Dunavant
The Bold Strategies CSPs Need for Digital First Success
Successful transformations happen when CSPs rewire their organizations from the ground-up to leverage digital and AI. This rewiring gives them a unique advantage: the ability to constantly improve their business models, develop winning solutions, and scale them rapidly. They can target value with laser focus, capture greater market share, and do so repeatedly. Digital transformation enables CSPs to be flexible, agile, and cost-efficient enough to capitalize on all network monetization opportunities 5G promises and to better address their customers’ evolving needs. Being robust and responsive enough to handle the scale and speed demanded by 5G means eliminating manual processes, and implementing truly cloud-native solutions, automation and AI. With AI at the core of this transformation, CSPs can propel themselves from telcos to data-driven platform orchestrators.
Read blog
Frost & Sullivan: 5G Charging and Monetization Growth Opportunities
Download eBook
MTN South Africa Transforms Its Billing Operations
View customer success
The Blueprint
The Blueprint
Digital First Enterprise
Digital First Enterprise
Netco/Servco
Netco/Servco
Cloud-Native
Cloud-Native
Digital Resilience
Digital Resilience
Pragmatic AI
Pragmatic AI
Meet an expert
MENU
The Blueprint
Digital First Enterprise
Netco/Servco
Cloud-Native
Digital Resilience
Pragmatic AI
Meet an expert
MENU
Digital First Enterprise
Cloud-Native
Schedule a meeting with a CSG expert
Schedule a meeting
with a CSG expert
Separating into NetCo and ServCo structures sharpens focus. The NetCo can dedicate itself to optimizing the network infrastructure, which many industry commentators view as a lower-risk option, that can generate steady cash flows over extended periods by leasing their infrastructure to service providers. The ServCo can become more agile and customer-centric, focusing on innovating services and experiences. As CSPs consider if their transformation strategy includes delayering, choosing the right BSS vendor will be critical, allowing them to free up internal CSP resources to focus on their core objectives: streamlining the separation process, ensuring efficient operations, and achieving a smooth transition to the new business model.