Understanding the basics of transformation in telecom

By Sudheer Dharanikota

June 30, 2017

What is the Problem?

Lately, the telecom industry has been going through significant transformation due to – gigabit fever, storm of next generation technology availability or industry consolidation. If you are a senior executive who directs your team to spend ~20% of your revenue every year into your core assets, these transformational decisions can be very unnerving! Balancing the revenue opportunities, competing effectively and investing with future in mind – make this a crucial and very challenging task.

Key Takeaways

  • For a telecom operator transformation requires carefully managing the Capital Expenditure (CapEx) required to upgrade their network to meet the demands of current and future customers
  • An effective network transformation should:
    • Meet subscriber, competitive, and product requirements
    • Minimize CapEx while maximizing revenue through strategic long-term (10-15 year) investment

Executive Summary

Lately telecom industry has been going through significant transformation due to – gigbit fever, storm of next generation technology availability or industry consolidation. If you are a senior executive who directs your team to spend ~20% of your revenue every year into your core assets, these transformational decisions can be very unnerving! Balancing the revenue opportunities, competing effectively and investing with future in mind make this a crucial and very challenging task.

Our goal in this white paper is to give you the basics behind transformation, provide a metric that can navigate you through the transformation jargon and assist you in engaging different partners to participate in a successful transformation.

Key Words: Access Networks, Transformation, Capital Intensity Ratio

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