Telecommunications network operators (TNOs) continue to face slow revenue growth, rising labor costs, and high network capital expenditures (capex). The cost of powering and maintaining networks are also challenges. To cope, telcos are digitally transforming their operations, restructuring their physical asset base, and learning from the Webscale world. Webscale network operators (WNOs) have grown to be among the world’s largest companies, and are investing in a range of markets with network needs: connected cars, remote health care, drones and more. WNOs spend big in the cloud, and are pressuring traditional supply chains through their support for open networking, direct work with the ODM/EMS sector, and self-designed chips. A third segment of companies, carrier-neutral network operators (CNNOs) have emerged to help carry and connect a growing portion of the world’s network traffic.
In 2017 these three groups of companies employed over 7.7 million people, accounting for $3 trillion in revenues and $400 billion in capex. Their technology spending supports hundreds of vendors across different parts of the value chain. Yet the spending is not stable, or easily predictable. That’s especially the case today, as US-China disputes impact supply chains.
The Global Network Infrastructure (GNI) service provides clients with insightful, timely analysis of technology spending trends (capex and opex) at over 150 network operators across three markets: telecommunications, Webscale, and carrier-neutral. For vendors, GNI helps you understand and plan for the needs of your customers, providing a deep view into spending, and hard data on market trends. For network operators, GNI helps you deploy your technology budgets wisely, and learn from other players in the market.
1. Who are the top 150 companies investing in communications networks worldwide? How is their network spending changing over time?
2. How will 5G be deployed, how much will it cost, and what new services will it enable?
3. Who are the important tech suppliers involved in Webscale network construction? How do WNOs develop technologies internally & push to market?
4. What role will carrier-neutral network providers play in the 5G market? What new business models are CNNOs pursuing outside telecom?
5. Who are the top 50 vendors to the telecom network operator vertical? How is their market share changing?
6. How will supply chains evolve as politics & security issues alter the US-China relationship?
7. What strategies are telcos adopting to reduce their operating expenses? Which ones are succeeding?
8. How are telecom operators reshaping their workforces, and what is the role of artificial intelligence? Who may benefit from telco AI?
9. Who will be the key players in the connected car market, and what are the main opportunities for network operators?
10. What is the role of edge computing in future networks? How will data center designs change?
The foundation of the network operator analysis is a deep, quantitative understanding of the overall market and its key players. Each quarter, GNI clients receive Excel-based reports tracking the TNO, WNO, and CNNO markets. These reports assess financial & strategic developments in each segment, and give near-term guidance on market outlook. For a longer term view, the GNI service includes an annual market forecast for each of the TNO, CNNO, and WNO segments.
The quarterly tracker & annual forecast provide high-level market analysis, and dig deep into network spending trends and related opportunities for vendors. GNI clients also receive a bi-annual review of vendor market share in the TNO segment.
Other core deliverables include:
- "Webscale Playbooks" - 8 per year, assessing key WNOs (Alibaba, Alphabet, Amazon, Apple, Baidu, Facebook, Microsoft, and Tencent)
- TNO profiles, focused on network spending: 4 per year
- CNNO profiles: 4 per year
- Vendor profiles: 6/year, focused on Asia-based suppliers (e.g. Huawei, Inspur, Murata, Quanta, Wiwynn, and ZTE)
- Technology insights: 4 reports per year, focused on volatility, dislocation, and new opportunities. Tentative topics: connected cars; open networking; IoT security; artificial intelligence.
- Market insights: 4 reports per year, focused on cost related topics for telcos (labor, content), policy issues (US-China relations), and financial markets (recessions and bubbles).
Quarterly tracking includes over 100 TNOs, 40 CNNOs, and 30 WNOs. The vendor market share analysis considers over 150 suppliers from all parts of the food chain.
Some of the key companies in each area include:
- Vendors: Accenture, Accton, ADTRAN, ADVA, Allied Telesis, Amdocs, ARRIS, Atos Origin, Calix, Capgemini, Casa, Ceragon, CCSCL, Ciena, Cisco, Comba, CommScope, Corning, DASAN Zhone, Datang, DyCom, Ericsson, Fiberhome, Fujikura, Fujitsu, Furukawa, HPE, Huawei, IBM, Infinera, Infosys, Italtel, Juniper Networks, NEC, Nokia, Oracle, Radisys, Radware, Ribbon Communications, SAP, Sopra Steria, TCSL, Wipro, and ZTE
- Telecom Network Operators: Altice, America Movil, AT&T, Axiata, BCE, Bharti Airtel, BSNL, BT, CenturyLink, Charter, China Mobile, China Telecom, China Unicom, Chunghwa Telecom, CK Hutchison, Comcast, DT, Etisalat, Frontier, Televisa, KDDI, KT, Liberty, Megafon, MTS, MTNL, NTT, Oi, Orange, Jio, Rogers, Singtel, SKT, Sky, SoftBank, Swisscom, TI, Telefonica, Telekom Malaysia, Telenor, Telia, Telkom Indonesia, Telstra, Telus, True, Turk Telekom, Turkcell, Veon, Verizon, Vodafone.
- Webscale network operators: Alibaba, Alphabet, Amazon, Apple, Baidu, Facebook, Microsoft, Tencent; Altaba, Booking Holdings (formerly Priceline), ChinaCache, Cognizant, eBay, Fujitsu, HPE, IBM, JD.COM, LinkedIn, Netflix, Oracle, Qihoo 360, Salesforce.com, SAP, Sina, Snap, Sohu, Twitter, Weibo, Xunlei, Yandex, YY
- CNNOs: American Tower, Arqiva, Balitower, Bharti Infratel, Cellnex, China Tower, Chorus, Cogent, CoreSite, Crown Castle, CyrusOne, Digital Realty, EI Towers, Equinix, GTL, Internap, Interxion, IBS, Inwit, Level 3, NBN, QTS, SMN, SBA Communications, STP, Superloop, Telxius/Telefonica, Tower Bersama, Uniti Group, Zayo
A number of companies operate across segments, and this changes over time. For instance, HPE, IBM, Oracle, and SAP are tracked as both technology vendors (of servers and telecom software, for instance), and as Webscale operators due to their public clouds. Within the network operator space, some operators function across segments or evolve into different segments through M&A. CenturyLink is both a telco and a carrier-neutral provider, for instance, by virtue of its Level 3 acquisition. In this and in similar cases, data is allocated across segments proportionately.
Sample Table of Contents - "Telecom Network Operators: 3Q18 Market Review"
3. Key stats through 3Q18
4. Operator rankings
5. Rev, capex and headcount
6. Deep dive cost analysis
7. Subs & traffic
8. Exchange rates
9. About (including methodology)
List of Exhibits
- TNOs: Annualized revenue ($M) and YoY growth (%), 1Q14-3Q18
- TNOs: Annualized capex ($M) and capital intensity (%), 3Q14-3Q18
- Labor cost/revenue (%), 2017
- Labor cost and labor cost per employee, 2017 YoY change (%)
- Change in annualized operating margins (YoY percentage point difference 4Q13-3Q18)
- Local currency value vs. US$ (QoQ change)
- Top 20 share of the market, 3Q18
- Top 20 TNOs by total capex, 3Q18
- Top 20 TNOs by total revenue, 3Q18
- TNOs: YoY growth in single quarter revenues
- TNOs: Annualized capital intensity, 4Q11-3Q18
- TNOs: Revenue and RPE, annualized 1Q14-3Q18
- TNOs: Capex and capital intensity (annualized), 1Q14-3Q18
- TNOs: Total headcount trends, 1Q11-3Q18
- TNOs: Revenue and RPE trends, 2011-17
- TNOs: Capex and capital intensity, 2011-17 ($ Mn)
- TNOs: Capex and capital intensity, 3Q14-3Q18 ($ Mn)
- TNOs: Revenue and RPE trends, 3Q14-3Q18
- Top 41 TNOs by total opex, 3Q18
- Top 41 TNOs by labor costs, 3Q18
- Allied Telesis
- America Movil
- American Tower
- and ZTE
- Atos Origin
- Bharti Airtel
- Bharti Infratel
- Booking Holdings (formerly Priceline)
- China Mobile
- China Telecom
- China Tower
- China Unicom
- Chunghwa Telecom
- CK Hutchison
- Crown Castle
- DASAN Zhone
- Digital Realty
- EI Towers
- Juniper Networks
- Level 3
- Qihoo 360
- Ribbon Communications
- SBA Communications
- Sopra Steria
- Telekom Malaysia
- Telkom Indonesia
- Tencent; Altaba
- Tower Bersama
- Turk Telekom
- Uniti Group