Telecommunications companies are under pressure to navigate a rapidly changing industry marked by technology disruption, industry consolidation and an increasingly competitive market. 5G is widely expected to be a defining stage in the global evolution of technology, and companies need to adopt strategies that will address these impacts. Making smart strategic decisions in this environment presents a number of issues and challenges, including:

  • Where to participate and how to drive value in a world of convergence
  • How to monetize growth in traffic and optimize the value from the core connectivity business
  • How to drive customer lifetime value through effective pricing, sales and marketing strategies
  • How to drive customer retention and loyalty
  • Where and how to participate to grow new revenue streams and offset the pressures on the core business
  • How to simplify the business to profitably compete against new entrants with different, leaner and more agile business models

How we help

L.E.K. has a deep understanding of the key trends and issues facing telecommunications businesses. Our communications clients are global and include industry leaders across the value chain including B2C and B2B service operators, managed service providers, distributors, VARs, and device and infrastructure manufacturers.

We help clients evaluate where to participate and how to win in a converging and rapidly changing competitive landscape. In a world of shrinking profit pools, we work with operators and other participants to design commercial strategies and simplify their business model to extract more value from their core business. To offset pressures on existing revenue streams, we help businesses identify and prioritize opportunities for growth via new product development and expansion to adjacent segments or geographies. Client engagements include:

  • Corporate strategy, business planning, new business development, strategy activation and business performance improvements
  • Transactional services such as acquisition strategy, screening, evaluation, due diligence and post-acquisition support

Examples of our work

In the telecommunications arena, L.E.K. has successfully:

  • Evaluated the impact of 5G network rollout across the U.S. telecoms value chain and adjacent sectors. We helped the client build an understanding of rollout timing and operator strategies for major 5G use cases, and identify the expected capabilities of 5G compared with 4G and other existing technologies. We also helped identify potential “winner and loser” organizations across the telecoms ecosystem and adjacent sectors.
  • Developed a new business growth strategy for a major global mobile operator that wished to develop adjacent revenue streams to offset a declining core business. We helped the business identify and prioritize a large number of potential areas based on the scale of the opportunity, its structural attractiveness, and its ability to compete and fit with the core business. For the prioritized areas, we worked with our client to develop the entry strategy and design a compelling proposition to successfully and profitably address these opportunities.
  • Developed the corporate strategy for a wireless device manufacturer, underpinned by a detailed evaluation of the market and competitive landscape and an assessment of the capabilities and assets supporting the company’s historical success. We provided a clear strategic direction for where to participate (i.e., which markets, which technologies, which segments and which parts on the value chain) and a road map for how to get there via organic initiatives and acquisitions.
  • Assisted a major convergent operator in developing a video strategy and launching a new OTT video service to grow revenue, differentiate itself from the competition, and address the needs and media consumption behavior of the millennial consumer.
  • Supported a leading mobile operator in optimizing its distribution strategy based on a customer lifetime-value approach. We helped the operator develop a lifetime-value model to understand the value dynamics by channel and optimize the mix of channels used. The work supported a substantial investment in direct channels, which reduced the cost of acquisition and increased the value of new customers.
  • Developed a turnaround strategy for a fixed-line B2B operator. The work resulted in a substantial simplification of the business and a complete redesign of the business strategy.
  • Developed a detailed market forecast of the global wireless infrastructure components market. We built a market model to reflect key macro trends and the outlook for products in the wireless sector, including impacts from the transition to 5G, and delivered a detailed view of global data demands, segmented into 3G, 4G and 5G technologies. The work results in a better understanding of the addressable market and the speed at which the transition to 5G would impact the business strategy.

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