The Arthur D. Little flagship Telecom & Media study in London launched with key conclusions. Telcos are expected to master the "ARPU x volume" battle, resulting in a 1% CAGR in Europe over the next five years. "B2B2x" is gaining importance, representing a new segment and untapped opportunity for Telcos. New production models are emerging, with a tailored transformational journey key to drive an improved customer journey, lower production costs, and more innovative/faster time to market. Operators will need to review how they manage their diverse portfolio of assets, potentially impacting balance sheets due to a shift from depreciation to opex. The markets are expected to recognize that vastly different types of operators will offer different risk profiles and abilities to scale. Volume-driven growth in core European Telcos is on the horizon, with mobile and fixed broadband services acting as key growth drivers.
