This report examines how telco brands need to evolve in the digital age. What is Telco 2.0 in brand terms? There are many different approaches and a wide range of levels of success. In some cases, brand reinvention is based on aspirations or perception of the successes of digital players, rather than an accurate understanding of capabilities and what the market will accept. The future viability of telcos as a market force (rather than just a connectivity provider) depends on getting it right.
Background to the Report
Operators around the world have seen their revenues eroded and margins reduced due to the entry of OTT and digital players.
This impact is on top of the pressures of competition between players and the ever increasing attentions of regulators intervening on pricing (e.g. MTRs, roaming).
At a time when operators need to fund a whole new generation of infrastructure in order to remain competitive and contribute to national economies, pressures on revenue and margin become a critical determinant in how quickly and widely they can deploy 5G.
The perception of the telco as a key supplier is dependent to an extent on its brand positioning. To be a supplier of choice, the brand must have credibility as a digital player alongside the OTT and other application and service providers that customers choose to have a relationship with.
Most operators are working on their brand with a view to remaining digitally relevant, but their success in this endeavour has been very varied. The purpose of this report is to examine the repositioning efforts of a number of players in an effort to derive what factors determine success in this area.
An understanding of what works and why will help others reviewing their own approach.
Following the introduction, the remainder of this report comprises the following sections:
- Section 3 examines the brand issues that face telcos;
- Section 4 includes research on a number of players and their brand approaches, responding to the issues from the previous section;
- Section 5 provides our findings and conclusions based on the research;
- Section 6 delivers recommendations for MNOs and converged operators wishing to review their own brand strategy.
- Emergence of brand dominance by digital players
- Variable approaches and levels of success seen
- Potential rewards for getting it right
- Marginalisation of telcos as networks become utilities
- Loss of margin and revenue to digital players
- Ability to fund 5G possibly compromised
- Urgent need to review and evolve brands
- Elevate customer centricity to top priority
- Need to build telco credibility as digital players
1.1 Key Infographic
1.3 Three i3
2. Background and Content
2.1 Background to the Report
2.2 Report Content
2.3 Currency and Conversions
2.4 Further Questions and Feedback
3. Brand Issues for Telcos
3.1 Historical Brand Benefits
3.2 The Emergence of Digital Brands
3.3 Changing Dynamics in Digital Markets
3.4 Brand Choices for Telcos
4. Selected Case Examples
4.1 VEON – Telco to Global Tech Business
4.1.3 VEON’s Rebranding Exercise
4.1.4 Results of Digital Transformation and Rebranding
4.2 Singtel Digital Transformation
4.2.2 Background and Digital Business Development
4.2.3 Costs and Benefits of Transformation
4.2.4 Results of Transformation
4.3 KPN Transformation from Multi-brand
4.3.2 KPN’s Multi-brand Journey
4.3.3 Financial Context
4.4 Other Players’ Brand Transformations
4.4.1 Telefónica Launches O2 in Spain
5. Findings and Conclusions