Gartner Research

Market Trends: Seven Innovative CSPs Embark on Digital Service Transformation

Published: 22 May 2013

ID: G00247288

Analyst(s): Gyanee Dewnarain

Summary

CSPs face the dilemma of whether to make incremental improvements to their core business or introduce disruptive and unrelated services. Decision makers should learn from seven CSPs that chose disruption — AT&T, NTT Docomo, Orange, SingTel, SK Telecom, Telefonica and Telstra.

Table Of Contents
  • Recommendations for CSPs

Introduction

Market Trend

  • There Is No Single Killer Digital Service
  • CSPs Face New Breeds of Competitors in Each Digital Service
  • CSPs Ring-Fence Innovation to Protect It From the Traditional Business
  • CSPs Adopt New Implementation and Delivery Models
    • Build — Organic Growth
    • Buy — Acquisitions
    • Resell — Partnerships
  • CSPs Adopt Diverse Business Models for Monetizing Digital Services
    • Subscription
    • Free
    • Freemium
    • Advertising
    • Pay per Use
    • In-app Purchases
    • Bundling — Cross-Subsidy
    • Hybrid Services
  • CSPs Seek Innovation From Multiple Sources
    • Startup Incubators, Accelerators and Excellence Centers
    • Employee and Consumer Crowdsourcing
    • R&D Centers or Labs
    • Ecosystem Enablement — Developer Engagement
    • Venture Capital
  • Summary of Other Key Findings

Recommended Reading

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