Based on a survey of 200 leaders within Communications Service Providers (CSPs), Accenture’s “Start at the centre: Network-led transformation for growth” report reveals that 82% of CSP leaders are expecting to increase network spending by 6% to 10% over the next three years – and they are expecting tangible results from their investments.
Key highlights from the report include:
* 77% of executives at CSPs believe their network transformation efforts will have a high impact on their revenue and margin performance in the next three years.
* 98% of CSPs say growing data demands in the consumer and enterprise worlds have outstripped the current capabilities of networks.
* CSPs recognise the importance of shifting towards a software-defined, cloud-based network, with 95% of executives saying it is important in achieving a cost-efficient, flexible network.
* Only 13% of those surveyed are accelerating their investments in next-generation networks.
While the study found more than three-quarters (77%) of executives believe their network transformation efforts will have a high impact on their revenue and margin performance, surprisingly, only 13% of those surveyed are accelerating their investments in next-generation networks. These leaders have higher expectations about their future performance. They expect 1,5-times revenue and 1,8-times gross margin over others in the next three years.
A cloud-based network allows for end-to-end flexible, scalable network delivery. Almost all CSPs surveyed (95%) see cloudification as important to achieve a cost-efficient, flexible network and 83% believe network cloudification will transform their business.
Despite significant investments, most CSPs are facing challenges to execute network transformation holistically. Half the surveyed CSPs have not implemented use cases that rely on network automation and analytics, a cornerstone of transformation today. In addition, when it comes to enabling, and innovating from, cloud-based solutions, only 6,5% of respondents believe their company has the right skills and internal culture to manage advanced networks.
“Telecom companies have a commitment to their network as their main strategic asset. The challenge is how to transform their network in a way that goes beyond a generational upgrade and instead sets the organisation up for continuous innovation and improved customer experiences,” says Nitesh Singh, communications, media and technology lead for Accenture in Africa. “By building a cloud-based network, telcos are better set up for innovation-led growth and efficient network operations.”