Update on the Telecom Market in Europe. Eric Owen GVP EMEA Telecoms & Networking

Transcription

1 Update on the Telecom Market in Europe Eric Owen GVP EMEA Telecoms & Networking

2 Agenda European Telecom Market Realities Implications of Digital Transformation Essential Guidance to NSPs IDC Visit us at IDC.com and follow us on 2

3 West European Connectivity Markets Spending on Connectivity Services ( B) 250 CAGR Mobile Data 3.1% 150 Mobile Voice -2.8% 100 Fixed Data 2.2% 50 Fixed Voice -3.7% Legacy Overall CAGR is -0.1% Mobile Data: Messaging (-7.2%) Data over Mobile (6.1%) Mobile Voice covers spending and not Revenues Fixed Data: Legacy (-23.8%) Internet Access (2.8%) IP-VPN (0.0%) Ethernet (4.4%) Fixed Voice: TDM (-9.2%) IP (4.2%) Source: IDC European Telecom Services Database, 1Q2016 IDC Visit us at IDC.com and follow us on 3

4 WE Connectivity Market Characteristics 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Spending Share by Type of Service 24% Mobile Data 30% 26% Mobile Voice 21% 23% Fixed Data 27% 27% Fixed Voice 22% Spending Share by Type of User 160% 140% 120% 100% 80% 60% 40% 20% 0% Connections per Population Dial Broadband Mobile Voice Traffic in Billions of Minutes 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 33.8% Business 33.4% 66.2% Consumer 66.6% Growth Legacy % 15% 26% Mobile 69% IP Voice 19% TDM Voice 11% Source: IDC European Telecom Services Database, 1Q2016 IDC Visit us at IDC.com and follow us on 4

5 Connections (M) Connections (M) % of HH Connections (M) Driving Access Capacity 25,0% 20,0% 15,0% 10,0% 5,0% WE - Coverage of NG access Networks by HH WE Connections by type of User 2G 3G 4G 0,0% 50 0 VDSL DOCSIS 3.x FttP WE NG Access vs Other WE LTE vs Other % 28% Other NG Access 28% 72% % 11% Other LTE 42% 58% Source: IDC European Telecom Services Database, 1Q2016 5

6 LTE penetration Countries are at Very Different Stages Snapshot 2015 WE ave: 12.7% Swe Den WE ave: 24.7% Ger UK Fin Nor Fra Bel Spa Ire Net Por Ita Aus Swi Gre Bubble size indicates average spend per population Fixed NG access penetration

7 Revenue Telecom Operator Realities Infrastructure rationalisation and lower cost of delivery Telecom market Connectivity There are several other areas Increase portfolio and service flexibility

8 Telco Addressable Markets - Consumer 250 Addressable Consumer Markets for Telcos in Europe ( B) Other areas of opportunity: Advertising E-commerce & Other content Storage, Security, network, etc. Connected home Broadcast TV & VoD CAGR 2% Broadcast TV & VoD: Cable TV Satellite TC IPTV Terrestrial TV 50 0 Connectivity CAGR 0% Growth Legacy Connectivity: TDM Voice VoBB Internet Access Mobile Voice/Data/Messaging Source: IDC European Telecom Services and TSDB+ Databases, 1Q2016 IDC Visit us at IDC.com and follow us on 8

9 Telco Addressable Markets - Business Addressable Business Markets for Telcos in Europe (EUR B) Non-connectivity Addressable or Telcos Connectivity CAGR 18% CAGR 0% Growth Legacy Areas considered outside the reach of Telcos Non-conn addressable to Telco: Cloud & DC Services UCC, Conferencing & CC Mobility Software & Services Security Solutions & Services Networking IoT Connectivity: TDM Voice & IP Voice Internet Access Fixed Data Services Mobile Voice/Data/Messaging Source: IDC European Telecom Services and TSDB+ Databases, 1Q2016 IDC Visit us at IDC.com and follow us on 9

10 3rd Platform Driving Transformation IDC Visit us at IDC.com and follow us on 10

11 Digital Transformation (DX) IDC MaturityScape Focuses on Five Key Areas of Transformation Leadership Transformation Omni-Experience Transformation Information Transformation Operating Model Transformation WorkSource Transformation Leading Priorities: Leading Priorities: Leading Priorities: Leading Priorities: Leading Priorities: Ecosystem awareness and insight Business model innovation Organizational and cultural disruption Agile planning and governance Ecosystem experience Continuous innovation orientation Platform service delivery Omi-dimensional marketing Data discovery Value development Value realization Knowledge and collaboration Information architecture Connected products and services Connected assets Connected processes Decision making Organizational structure Manage talent Source talent Optimize work Facilitate a digital transformation mindset Financial and economic leverage IDC Visit us at IDC.com and follow us on 11

12 IDC s Digital Transformation MaturityScape Optimized Digital Transformation is the approach by which enterprises drive changes in their business models and ecosystems by leveraging digital competencies Ad Hoc Digital Resister Business and IT digital initiatives are disconnected and poorly aligned with enterprise strategy, and not focused on customer experiences. Business Outcome Business is a laggard providing weak customer experiences and using digital technology only to counter threats. Opportunistic Digital Explorer Business has identified a need to develop a digitally enhanced, customer-driven business strategy, but execution is on a project basis. Progress is not predictable nor repeatable. Business Outcome Digitally enabled customer experiences and products are inconsistent and poorly integrated. Repeatable Digital Player Business-IT goals are aligned at enterprise level around creation of digital products and experiences, but not yet focused on the disruptive potential of digital initiatives. Business Outcome Business provides consistent but not truly innovative products, services and experiences. Managed Digital Transformer Integrated, synergistic business-it management disciplines deliver digitally enabled products and service experiences on a continuous basis. Business Outcome Business is a leader in its markets, providing world class digital products, services and experiences. Digital Disrupter Enterprise is aggressively disruptive in the use of new digital technologies and business models to affect markets. Ecosystem awareness and feedback is a constant input to business innovation. Business Outcome Business remakes existing markets and creates new ones to its own advantage and is a fast-moving target for competition. IDC Visit us at IDC.com and follow us on 12

13 Digital Transformation Maturity Telecom Operators IDC Visit us at IDC.com and follow us on 13

14 Study on Telco DX Maturity Optimized Study on 20 Telcos WW carried out by IDC in early 2016 Repeatable Managed Digital Disrupter Ad Hoc Digital Resister Opportunistic Digital Explorer Digital Player Digital Transformer LA Telcos in Repeatable US Telcos in Manged WE Telcos clustered between Opportunistic and Repeatable AP Telcos spread between Opportunistic and Managed OVERALL TELCO DX MATURITY Managed 10% No Telco in Optimized Ad Hoc 5% MEA Telcos spread between Ad Hoc and Repeatable Opportunistic 25% Repeatable 60% IDC Visit us at IDC.com and follow us on 14

15 European Enterprise Communications Survey: Investment priorities are moving towards DX Improve network security Improve back up/recovery Improve network infrastructure Big Data/advanced data analytics Mobilize the workforce Software defined networks Enterprise social networking Internet of Things (IoT) 2015 Survey Cloud services UC&C Cloud services Improve network security Mobilize the workforce Big Data/advanced data analytics UC&C Improve back up/recovery Improve network infrastructure Internet of Things (IoT) Enterprise social networking Software defined networks 2016 Survey IDC Visit us at IDC.com and follow us on 15

16 European Enterprise Communications Survey: Network Service Provider Selection Criteria 2015 Survey 2016 Survey Pricing Quality of service and support Geographical coverage Technology innovation Contract flexibility Cloud service strategy A broad service portfolio that includes IT and The ability to provide mobile/wireless service Vertical/industry expertise Pricing Quality of service and support Performance and service level agreements Technology innovation (e.g., cloud, hybrid Contract flexibility Geographical coverage Expertise in security Broad service portfolio (i.e., includes IT, Vertical/Industry expertise 0% 20% 40% 60% Few enterprises consider NSP beyond connectivity 0% 20% 40% 60% IDC Visit us at IDC.com and follow us on 16

17 Innovation Accelerators: In the Middle of the Future 80% Currently adopting at least one IoT solution Not Adopting but Planning at least one IoT solution Not Familiar Not Adopting or Planning any IoT solution 80% 40% Plan to adopt in the next 12 months Not using and no plans 40% Already using 0% 3D Printing Cognitive systems Robotics 0% Internet of Things Huge opportunities for the coming months. Educating and showing real-life business applications will be the key Source: IDC s European Vertical Markets Survey, October 2015 n = 1,697, base = all sample 17

18 CSPs need to transform to succeed Internalize Automate Understand Speed Up Differentiate Experiment Deliver Value IDC Visit us at IDC.com and follow us on 18

19 For Further Information Contact... Eric Owen GVP EMEA Telecommunications and Networking Direct: +44 (0) Mobile: +4 (0)