This is an update to my work on the internal financial value of A3 to an “average” telco – capex and opex decrease and revenue opportunity:
The overall financial value remains virtually unchanged since my 2022 update. This lack of significant change in financial value is related to the maturity of understanding about where the value from A3 was likely to be seen. The appearance of gen AI has added some uplift in areas such as the contact centre and marketing, but it is thought prudent to keep these uplifts limited currently.
Changes to the model:
Some boxes have been renamed:
- Service orchestration – this is a new addition, combining processes from order management and network management to reflects the increasing importance of end-to-end service orchestration in supporting new products and services
- Agent digital assistant – a box originally titled “real-time guidance” has been renamed to reflect the additional gen AI and AI copilot capabilities now being seen. The overall financial value has been increased to reflect the new opportunities for gen AI to improve agent productivity
Financial values have also changed:
- The 2022 model included a significant figure for the capex/opex decreases expected from the introduction of virtualized networks. However, reports post-2022 often note virtually no financial value due to various difficulties around management of cloud capacity. A more realistic figure is now shown in the model as cloud management grows in sophistication to realize some benefits
- Some additional financial value has been added to network processes around testing and deployment and service orchestration – these are in light of new types of A3 being deployed
For more details on the methodology of the model, please see: Uses for A3 Across a Telco | Charlotte Patrick Research
