Telco Network Infrastructure: Structural separation is the key to maximizing value

A Capgemini Invent view

Publish date:

A Capgemini Invent perspective on how Telcos can create value through structural separation of NetCos, TowerCos or FiberCos as different entities.

The telecom industry, today, is at the center of a massive evolutionary change which demands support across an ever-changing tech landscape and the adoption of a Digital Operating Model. This new outlook has become an imperative for all Telcos to be able to successfully launch market-relevant products on the back of a predictable, ultra high-speed network with a personalized customer experience.

The telecom service providers have always been leveraging their network and infrastructure assets to gain a competitive advantage in the market. These providers have focused on investing heavily in building up these network assets over a significant period of time. However, the Capex/Opex involved in building and maintaining these assets has proved to be financially intensive with very long timeframes involved to reach the targeted ROI. This has made it difficult for quite a few Telcos to respond to, and invest in, new products and services as required by the ever-evolving customer demographics.

Across the globe, various Telcos have acknowledged the need to shift from an asset-intensive model to a nimbler and more asset-responsive inventive model. This has led the Telcos to identify ways and means to reduce the asset debt in their financial books and, additionally, prompted them to explore and harness technological advances. An important paradigm shift that has successfully helped Telcos to move towards an asset-light, revenue-generating, and innovative enterprise relates to the spinning off of their infrastructure/network assets into separate entities. There are many examples of various Telcos across the globe which have successfully offloaded their infrastructure assets and have turned around the financially straining environment into a revenue-generating business model.

In this whitepaper, we have evaluated the primary benefits that Telcos can gain from hiving off their infrastructure or network assets into separate entities. The remit of this paper covers the possibilities of NetCos, TowerCos or FiberCos as different entities that a Telco can investigate for structural separation. Furthermore, the development of having a Joint Venture to support infrastructure management is also touched upon in this paper.

We have recommended a domain-specific framework that a Telco can adopt for considering the structural separation. The framework touches upon all key aspects and processes within a Telco and is aligned with industry standards.

The underlining objective of this whitepaper is to enable our esteemed clients to realize their business ambitions by considering a separation or spin-off of their infrastructure and network infrastructure assets while ensuring they become sustainable, customer-focused, and conscious enterprises in the process.

To access the whitepaper, please click on the image below:

Telco PoV

Key contact:

Amit Joshi

Amit Joshi
Director, Capgemini Invent | Head of Telecom Consulting
Digital Transformation, Business Change Management

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