1、Technology,Media&Telecommunications PracticeThe future of telcos:Mapping the routes to renewed successFor all their efforts to reignite growth,telcos have yet to overcome their fundamental challenges.Doing so is still feasible,but the viable paths will require unprecedented transformation.December 2

2、024 Getty Imagesby Andrea Travasoni,Luca Fiandro,and Venkat Atluriwith Marco Labianca In recent years,telcos have repeatedly attempted to turn around their flagging fortunes by embracing agile ways of working,core-adjacent businesses or services,advanced network technologies,and assorted productivit

3、y improvements.Yet these piecemeal efforts have not been sufficient to turn the tide.The challenges the industry faces are fundamental and arguably existential,including massive capital requirements and complex underlying issues.And responses to our recent survey of 60 telco CEOs and other top execu

4、tives from around the globe show that executives are well aware of these daunting obstacles.Nevertheless,based on our research and experience in the market,including interviews with telco leaders,we see a few viable options for putting the industry on firmer footing.Telcos can reinvent the integrate

5、d business and operating model,move away from the integrated approach by delayering or separating into multiple focused entities,or transform into a utility-like organization with greater emphasis on sustainability,efficiency and more government support.Fundamental challengesThe massive capital requ

6、ired to develop and maintain increasingly sophisticated telecom networks has certainly taken its toll:the industry has seen its return on invested capital(ROIC)and shareholder returns steadily decline,even as tech companies have harnessed telecom infrastructure to generate unprecedented value creati