Sunday, January 19, 2025

The future of telcos: Mapping the routes to renewed success - McKinsey

In recent years, telcos have repeatedly attempted to turn around their flagging fortunes by embracing agile ways of working, core-adjacent businesses or services, advanced network technologies, and assorted productivity improvements. Yet these piecemeal efforts have not been sufficient to turn the tide. The challenges the industry faces are fundamental and arguably existential, including massive capital requirements and complex underlying issues. Nevertheless, based on our research and experience in the market, including interviews with telco leaders, we see a few viable options for putting the industry on firmer footing. Telcos can reinvent the integrated business and operating model, move away from the integrated approach by delayering or separating into multiple focused entities, or transform into a utility-like organization with greater emphasis on sustainability, efficiency and more government support.

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