2023电信行业展望-16页_1mb

2023 Telecom Industry Outlook Analysis

Executive Summary

• Connectivity demand growth presents both opportunities and challenges for CSPs.
• Strategies include offering bundled services, expanding FWA, and implementing sustainability measures.
• Balancing cost, performance, and environmental impact is crucial for future competitiveness.

Key Strategic Issues

1. Bundle Battle

   • Growth in fixed-mobile convergence bundles in the US (only ~8% converged subscriptions in 2022).
   • Enhanced customer satisfaction and retention through bundles with multiple services.
   • Partnerships between cable and wireless providers (e.g., MVNOs) and aggressive pricing strategies by providers.

2. FWA Surge

   • Dominance in broadband adoption (90% share in 2022 US market), driven by mid-band 5G technology.
   • Sustainability concerns regarding performance compared to fiber/optic and long-term economic viability.
   • Future growth depends on mmWave technology advancements to increase speeds.

3. Edge Computing for Enterprises

   • Battle for edge computing market share between CSPs, hyperscalers, and tech companies.
   • Enterprises seek edge solutions for reduced latency, cost savings, and enhanced data control.
   • Strategic partnerships required to deploy end-to-end solutions.

4. Joint Ventures for Fiber Deployment

   • Collaboration with private investors accelerates fiber deployment, addressing high costs and funding challenges.
   • Balancing wholesale vs. retail models and extending deployment to underserved areas.
   • Government incentives and public-private partnerships facilitating broader access.

5. Increased Focus on Sustainability

   • Meeting ESG compliance and environmental reporting standards.
   • Setting science-based emissions targets and increasing renewable energy usage.
   • Addressing Scope 3 emissions challenges across value chains and promoting circular economy principles for electronics.

Strategic Questions for CSPs

1. Bundling: Should CSPs bundle services to enhance customer retention despite potential revenue dilution?
2. 5G FWA Economics: Does continued aggressive pricing harm long-term viability, and can mmWave deployment sustain current growth?
3. Edge Solutions: Can CSPs deliver integrated edge solutions or should focus be on network infrastructure and partnerships?
4. Joint Ventures: How can joint ventures be structured to optimize returns and monetization while balancing wholesale/retail needs?
5. ESG Compliance: How prepared are CSPs to meet evolving ESG regulations, including Scope 3 emissions reporting and circular economy implementation?

Key Signposts

• Continued growth in bundles, FWA adoption, joint venture deployment, and edge solutions.
• Focus on sustainability with increased emphasis on Scope 3 emissions and circular economy initiatives.
• Partnership ecosystem strengthening to manage costs and accelerate deployment.

Future Outlook

• Collaboration between CSPs, governments, private investors, and technology providers essential for navigating challenges.
• Potential for further economic and environmental downturns, requiring robust and adaptive strategies.

Authors: Jana Arbanas, Dan Littmann
Deloitte Center for Technology, Media & Telecommunications (TMT Center)