LONDON, April 29,
2024 /PRNewswire/ -- China Mobile has emerged as the
top overall performer in Omdia's telco-to-techco benchmark. The
Omdia study assesses the efforts of 12 leading telecom service
providers globally as they transition towards the techco operator
model, integrating communications and technology services.
The high cost of deploying 5G and fiber networks, combined with
low growth in revenues for communications and connectivity
services, is leading many telcos to reinvent themselves as techcos
that provide technology services, primarily to the enterprise
sector.
"A telco that has adopted the techco model successfully is a
software-based organization that offers services in areas such as
AI, big data, the cloud, and IoT, and can implement digital
transformation for specific vertical sectors," said Matthew Reed, Chief Analyst, Service Provider
Strategies, at Omdia.
China Mobile ranks first in the telco-to-techco benchmark with a
score of 31 points out of a potential maximum of 40, based on the
scale of its high-speed broadband platform; its capabilities in AI,
big data, and security; and its portfolio of enterprise digital
services and vertical market solutions. Digital transformation
revenue, which is China Mobile's term for revenue from new digital
services, accounted for 29.4% of China Mobile's service revenue in
2023, an increase of 22.2% year on year, according to the company's
reports.
NTT ranks second in the benchmark, reflecting its strengths in
software services and in the enterprise market, while SK Telecom,
which ranks third, recently unveiled a new strategy to become a
global AI company. SK Telecom's new AI services include an AI-based
digital assistant, A., which it plans to launch around the world,
with other telcos.
Telefónica ranks fourth in the benchmark, reflecting its
progress as a provider of cybersecurity and other enterprise
digital services through a dedicated unit, Telefónica Tech.
AT&T, e&, and Vodafone rank equal-fifth in the
benchmark. AT&T says that being an early adopter of AI has
helped it to make operating cost savings of $6bn. e& adopted a new strategy in 2022 to
become a leading global technology and investment group and has
acquired or developed assets and capabilities in multiple digital
service and technology areas. Vodafone has increased its focus on
the business market, including enterprise digital services, and
aims to expand its IoT operation, already the largest of its kind
outside China, as a standalone
unit in partnership with Microsoft.
"Overall, the operators covered in the benchmark are making good
progress towards a software-based operating model and with their
development of enterprise digital services," said Reed. "But their
vertical markets focus is less advanced generally and is an area
that needs more work."
ABOUT OMDIA
Omdia, part of Informa Tech, is a technology research and
advisory group. Our deep knowledge of tech markets combined with
our actionable insights empower organizations to make smart growth
decisions.
Contact: Fasiha Khan –
Fasiha.khan@omdia.com
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SOURCE Omdia