This diagram places nine global telcos on a triangle of three different strategies.
(Details of the three strategies are in this post: Successful development of intelligence and data products for enterprise customers)
The telcos were chosen to represent different geographic regions, and selection was based on the availability of a good amount of available information and analyst briefings.
The Progressive telcos were seen in China, South Korea and Japan, where government funding for AI development was often available. They spoke about their vision in this area as part of their high-level corporate vision and demonstrated a range of intelligence products, including the development of their own large models.
True Partner telcos were not seen in the analysis. Most telcos have some progressive capabilities and have yet to embrace a 100% partner mentality. As can be seen, most European and American telcos sit somewhere on the progressive-partner axis and are likely to shift slightly up and down, as they trial a variety of products; developing their own capabilities where sensible.
Pragmatists appear not to exist in this analysis. This is due to a lack of public communication around their intelligence/data strategy. It is hoped that further iterations of this research will include interviews with individual telcos, which will uncover the pragmatists and provide more detail around their thinking.
The provision of intelligence products remains one of the most difficult areas for telcos to compete. The barriers encountered by telcos 12 years ago when they started their creation of data and analytics products remain unchanged: the need for multiple new platforms and skill sets, the need for vertical-specific knowledge and the sales skills to sell into these verticals. Adding to this list is the current speed and immaturity of the AI market, which may offer opportunities for those who choose to invest but also sees strong competitors building market share.
We, therefore, saw a good degree of strategic heterogeneity with a lack of strong trends around the products and services being created.
The most committed companies exhibit a three-part strategy (or four-part strategy if they have an IT services division):
1.network infrastructure – existing and new services related to a telco’s core networking capabilities to cater for a customer’s AI needs
2.horizontal products – products that include intelligence designed to appeal to a range of verticals
3.vertical products – vertical-specific products that include intelligence
4.services and consulting – intelligence products delivered by the IT services and consulting teams of the telco.
