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What Five Trends Mean for Telcos
Article

What Five Trends Mean for Telcos

Val Elbert, Franck Luisada, Scott Stemberger, Davids Tjhin, Chi Hung Chong and Olga Smurygina
Boston Consulting Group, 2022
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8

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Recommendation

From 2019 to 2022, telcos had a total shareholder return (TSR) of 9%, performing a percentage point below the equities market as a whole. Between 2019 and 2022, pure-play telecom infrastructure companies actually outperformed the market by six points, but regional and global service providers brought the overall TSR down. How can the industry as a whole get back into the double digits? This report from the Boston Consulting Group offers some ideas.

Take-Aways

  • Telecommunications companies are currently experiencing surprisingly low returns, and will require a change in strategy if they hope to perform well in the future.
  • Structural separation, B2B applications and competitive hyperscalers are all opportunities for traditional telcos, or threats.
  • Telcos can increase value by building a bionic core business, moving into tech, offering 5G applications and operating models, and improving transformative enablers.

About the Authors

Val Elbert, Franck Luisada, Scott Stemberger, Davids Tjhin, Chi Hung Chong and Olga Smurygina are professionals with the Boston Consulting Group.

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