efficiency are being conducted in the telco infrastructure . This trend is prompting telcos to rethink their infrastructure ¹ strategy regarding a platform business model deployment and flexibly adjust it based on their target customers and industries .

REGULATION : Previous network technologies lacked a level playing field for telcos and OTTs . Telcos made the huge infrastructure investments , and OTTs benefited from them . As a result of new regulations , all competitors in the market should have more equal opportunities to monetize their infrastructure , services or platform .

Becoming a platform player : one scenario

The platform business model will likely manifest itself across three layers ( infrastructure , platform and everything-as-aservice ) as shown in the graphic below . The key shift is the creation of a platform to provide open access connectivity to any service provider , allowing for a multitude of customer-oriented services such as IoT apps and digital healthcare solutions . This shift will become an inevitable step if telcos are to emerge and capture important growth industries . Unless telcos reinvent their business model , we expect history to repeat itself – massive amounts of CapEx will be invested and produce no discernible incremental value extraction . Furthermore , platform development is a time-intensive process bringing customers and producers together , while monetization of the platform might pick up slowly with growing number of services .

To transform a traditional value chain into a successful platform business model , five key points should be kept in mind :

INNOVATION

A long-term technology view must be developed to spot at an early stage , implement and monetize innovations by either telcos or their partners .

Telcos must focus on customervalue investments instead of physical infrastructure .

Not all industries and customers can be addressed simultaneously . Prioritization will be the key as a result – this decision is based on existing core competencies , customer base and the planned strategic direction .

The right partners for collaboration , cooperation and integration into the platform must be selected .

A software-as-a-service model must extend subscription models whenever suitable , allowing for the best way to generate value for the customer and oneself .

Leveraging current platform growth drivers combined with strong decision making is essential for telcos to be a major beneficiary of the continuous platform revolution . Unless telcos act courageously on a new future-proof business model , they will once again fail to capture market shares from digital hyperscalers .

THE AUTHORS

VALUE DIMENSIONS

Multi-domain

E2E consumer applications with embedded connectivity , e . g ., IoT , smart city , autonomous driving

and open access platform for communication services inclusive voice , video , communication , etc .

DR . ALEXANDER HENSCHEL Managing Director , goetzpartners

Source : goetzpartners

COMMUNICATIONS SERVICE PROVIDER VALUE PARTICIPATION

1 ) See : goetzpartners 2021 . Infrastructure separation as a solution for mobile network operators . https :// joom . ag / sCoC © goetzpartners , 2021