Current international industry trends predict mid-term reductions of profitability margins for telecom operators, in particularfor mature markets. This is a result of huge investments (GSMA estimates that telecom operators will invest $1.7 trillionon capex during 2014-2020) that are required to build next-generation networks in order to satisfy the data- demandexplosion and revenue reduction caused by mobile price wars and competition from OTT.
Arthur D. Little considersnetwork-operations efficiency, optimizing existing operating and sourcing models, simplifying processes and organizations,and improving and automating tools some of the main levers necessary to face these challenges. In this viewpoint, weaddress the following questions: Which optimization opportunities in network operations can be implemented withoutcompromising service performance and customer experience? How should telco operators change their operating modelsand sourcing strategies in order to fully exploit optimization potential?