Today’s market conditions are creating challenging times for telco players. Even though consumer revenue has been historically high, margins are being squeezed because of the massive infrastructure investment telcos made in 5G to meet the COVID-19 spike in broadband demand and anticipated explosion in demand driven by various 5G use cases. Competition has been heating up from both traditional and non-traditional players. Customer expectations and the market have been shifting. And a looming recession and regulatory pressures have been creating uncertainty.

This report describes four future telecoms business models that are currently emerging around the world. It identifies some of the key capabilities that KPMG professionals believe are required to succeed in each model. And it offers practical steps to help today’s telecoms leaders envision — and create — the future.

Signals of change

While change is constant in the telco business, the factors driving change are constantly shifting. This report identifies and drills down into some of the most significant market factors that should currently be on telco leaders’ minds.

  1. Traditional business models are being challenged
  2. Escalating customer expectations
  3. Hyper-competitive hyperscalers
  4. A possible global recession
  5. Technology can create new opportunities — and threats
  6. Fulfilling the ESG agenda
  7. Telcos likely can’t avoid stricter regulations indefinitely

As the signals of change put pressure on traditional telco business models, there are various strategic imperatives emerging related to each one.

KPMG Connected Enterprise

KPMG professionals can help you harness technology to build a connected enterprise. That's an enterprise where your front, middle and back offices are aligned. An enterprise where you're more connected with your customers, employees and business partners. An enterprise that enables you to respond quickly to market signals and pivot to help seize opportunities as they arise.

KPMG Connected Enterprise is a digital transformation approach, that’s industry-specific and customer-centric. It helps focus critical processes, functions, and relationships of a business on meeting customer expectations, creating business value and driving sustainable growth in a digital world.

Organizations that invest purposefully in these capabilities are twice as likely to meet customer expectations, achieve their objectives and deliver return on investment.*

You can discover how connected your organization is by using the diagnostic tool. It assesses you against industry best practice and highlights the opportunities and challenges that may affect your ability to become a connected enterprise.

  • 2xImpact

*Base: 1,299 professionals involved with customer strategy decisions

Source: A commissioned study conducted by Forrester Consulting on behalf of KPMG, 2018. The research was conducted on a sector specific basis. Each capability is enabled by five level two capabilities.


Strategic approaches for your business

Every day, telecommunications companies see increasing complexity, conflicting choices, and infinite information. This is a world of opportunity. From enabling large enterprises to accelerate digital transformation to helping disruptive start-ups to take off, KPMG professionals know insights reveal new opportunities.

Contact our experts to find out more about our Telecom sector, Connected Enterprise, and how they can help you address new challenges and drive growth.

Contact us