2021年运营商收入多元化报告（英）-30页_616kb

Summary of "Operator Revenue Diversification: Growth Beyond Core Continues as Covid-19 Spurs Digitisation"

Core Content

This document provides an in-depth analysis of how mobile operators are diversifying their revenue streams beyond traditional telecoms services, particularly in the context of the global impact of the Covid-19 pandemic. It highlights the shift towards digital services and the growing importance of non-core revenue sources for operators worldwide.

Main Points

• Operator Revenue Diversification is Real: Mobile operators are successfully diversifying their revenue beyond core telecoms services. In 2020, services beyond core contributed an average of 24% to total operator revenues, up from 18% in 2017.

• Covid-19 as a Catalyst: The pandemic accelerated the adoption of digital services, driving growth in non-core areas. Despite challenges, operators in China, Japan, and South Korea showed resilience, with core revenues remaining stable and non-core services growing significantly.

• Growth Drivers: The main growth areas for non-core services include cloud and security, gaming and e-sports, financial services, and digital commerce. These services are becoming increasingly important for both B2B and B2C markets.

• Regional Performance:

  • US: AT&T and Verizon are leading in revenue beyond core, with media and entertainment as a key driver.
  • Japan and South Korea: These regions are at the forefront of revenue diversification, with a strong focus on consumer services and integration with lifestyle offerings.
  • China: Rapid growth in B2B services, especially cloud and AI, has pushed non-core revenue to nearly double over three years.
  • Latin America: Pay TV is under pressure, but operators are expanding in fintech and OTT services.
  • Europe: FMC (Fixed-Mobile Convergence) is a strategic focus, with gaming subscriptions rising due to 5G adoption.

• Key Trends:

  • B2B as a Growth Driver: B2B revenue now accounts for 30% of total operator revenue, up from 27% in 2017.
  • Digital Transformation: Enterprises are accelerating their digital transformation, increasing demand for cloud, security, and other value-added services.
  • M&A Influence: Acquisitions have played a key role in boosting non-core revenue for some operators, such as AT&T, SoftBank, Verizon, KT, and SK Telecom.
  • Consumer Market Shift: The consumer market is shifting towards digital entertainment, with cloud gaming and e-sports gaining traction.

Key Findings by Service

• Pay TV: While still a small portion of total revenues (average 5%), it remains a key part of operator household offerings. However, it faces pressure from video streaming services, especially in the US.

• Cloud and Security: These are the fastest-growing non-core services, particularly in the B2B market. They are driving significant revenue increases for operators.

• Gaming and E-Sports: With the rise of 5G, cloud, and XR technologies, gaming is becoming a major area of focus for operators. Several have launched cloud gaming subscriptions.

• Financial Services: Financial services have emerged as a key growth area, especially in China, Japan, and South Korea. Operators are securing digital banking licenses and expanding into consumer and B2B financial services.

• Digital Commerce: Mobile commerce is a major contributor to e-commerce transactions, with operators expanding into digital commerce and financial services.

Data and Methodology

• Operator Coverage: The analysis includes 16 major operator groups from around the world.

• Revenue Categories:

  • Core telecoms: Includes mobile voice, messaging, data, and fixed broadband.
  • Beyond core: Encompasses pay TV, cloud, security, gaming, financial services, and digital commerce.

• Methodology: The report is based on the financial results of the 16 operators, with data reclassifications and estimates where necessary. The growth of non-core services is measured as a percentage of total revenues.

Conclusion

Operator revenue diversification has become a strategic necessity, with non-core services playing a critical role in offsetting declines in traditional telecoms revenue. The pandemic has accelerated this shift, making digital transformation a key driver for future growth. As operators continue to innovate and expand into new markets, the share of non-core revenue is expected to grow further, especially in B2B and consumer digital services.