Powering a connected worldKPMG International —January 2017

Disruptive technologies barometer: Telecommunications sector

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Disruption is the new normal for telecommunicationsConnectivity, competition, and convergence are redefining every aspect of the telecom sector

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Before long, everyone and everything will be connected.

Telcos must provide fast, secure, reliable networks while avoiding becoming mere commodity providers.

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To discover how telcos are embracing disruptive technologies, KPMG International commissioned Forrester Consulting to survey 580 senior telecommunications decision-makers from around the world.

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Telcos are eager to use disruptive technologies to improve products and services, reduce costs, and outpace their rivals

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disruptive technologies are undermining their business models

Telcos lack a clear roadmap for dealing with disruption

their businesses lack organizational flexibility and agility

But they’re also concerned

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So telcos are hedging their bets when investing in disruptive technologies …and investing broadly in many technologies

65% 59%58%

65% 64%

Cloud Marketing platforms

D&AMobile

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Disruptive technologies can impact two different areas of the businessTechnologies that attract, serve, and retain customers

Customers

Technologies that drive operational excellence, productivity, and agility

Operations

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Telcos are using disruptive technologies to improve the customer experience

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D&A (80%) is making a significant impact on how telcos serve customersUsing IoT (42%) and D&A (39%) to market to customers more effectively

Using D&A (43%) and on demand marketplace platforms (42%) to monetize products/services differently

42%IoT D&A

D&A Demand marketplace platforms

39%

43%

42%

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Mobile and D&A are having the greatest impact on their operations

believe that IoT is being used to improve quality

79%

78%

30%

Mobile D&A

IoT

But only

Telcos are also using them to improve operations

12© 2017 KPMG International Cooperative (“KPMG International”), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

Document Classification: KPMG Confidential

KPMG framework: Disruptive technology value map – Telecom (investment versus impact model)

Based on impact and investment, disruptive technologies fall into 5 stages

Base: 580 business and IT decision-makers at telecommunications companiesSource: A commissioned study conducted by Forrester Consulting on behalf of KPMG, January 2016

ImpactInvestmentImpactInvestment

Table stakesMaturing

Sunrise/sunsetStrategic

Nascent

Technologies

D&ACloud Mobile

Social media

Low

Impact

Investment Impact

Investment Impact

Investment Impact

Investment ImpactLow

Medium

MediumMedium

High

HighHigh

High

Low

Investment

Digital payments & currencyOn demand marketplace platforms loTArtificial intelligence & cognitive computingWearablesVR/AR

Marketing platformsFog computing*SDN/NFV*

RoboticsBlockchain*

TechnologiesTechnologiesTechnologiesTechnologies

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Of those respondents whose companies have seen a positive effect from disruption,

say they saw the new technology trend earlier than others

Invested at an early stage

Timing is crucial

50%

41%

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A roadmap for disruptive technologiesClarify investment strategies and prioritize disruptive technologies

Master D&A and leverage it to its full potential

Harness disruptive technology to boost preventive maintenance

Invest in cultural and organizational change

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© 2017 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

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