CSP Analysis Report: Verizon

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Strong Happy Piper but ownership change and slowing US market increases pressure to deliver more


This 145-page PowerPoint style PDF report (and accompanying Excel data pack) examines the transformation efforts of Verizon Communications as it both embraces a Telco 2.0 Happy Piper philosophy and begins to explore new Telco 2.0 services more generally. Verizon’s positioning in the large US market, and how this is changing within its individual operating segments, is analysed and supplemented by a broader discussion of the US economy’s growth prospects and digital maturity.

The report also examines Verizon’s service offerings in detail by describing and evaluating both its core services and its early efforts in cloud, healthcare and M2M. Partnerships Verizon has entered with CSPs (e.g. ISIS) and those outside the industry (e.g. Redbox Instant) are covered in the Value Network section.

The report covers a general discussion of the challenges and importance of technology transformation is followed by a dive into Verizon’s financial results and revenue model, and how these will look different after the VZW deal closes.

The report highlights key strengths (e.g. differentiated network) and weaknesses (e.g. VZW debt-burden) are highlighted and strategic priorities are provided in the light in the light of these.   

Who is it for?

The Telco 2.0 Transformation Index is the world’s first benchmark of Communications Service Providers provides benchmarking and deep analysis, the index reports are designed for: 

  • Telcos and CSP operators (including those covered, those operating in the same markets and telcos operating in other markets)

  • For vendors either partnering with or wishing to partner with these telcos

  • Investors seeking to understand where to place their bets with CSPs

Key Benefits
  • Determine the key drivers of telecoms industry transformation

  • Clarify Verizon’s performance in specific areas of transformation

  • Understand Verizon’s relative strengths and weaknesses

  • Learn from Verizon’s transformation activities

  • Prioritise transformation projects at your organisation

  • Determine how your solutions can support Verizon

  • Improve your value propositions for Verizon

  • There’s more on the benefits and packages here

Format and pricing

  • 145-page pdf document (PowerPoint format) with internal and external html links

  • 100+ charts and tables

  • Excel data pack with financial, operational, market (competitor) data + STL Partners analysis

Contact us for pricing on +44 (0)207 247 5003 or [email protected]

Content Overview

Introduction and Executive Summary

Background: Defining Telco 2.0

  • The declining Telco 1.0 business model

  • The role of Telco 2.0 in bridging the digital ‘hunger gap’

  • Key Telco 2.0 skills, relationships, operational and financial models

  • The financial benefits of shifting from Telco 1.0 (Infrastructure business) to Telco 2.0 (Infrastructure + Platform and/or Product Innovation)        

Telco 2.0 Transformation Index Overview

  • Methodology

  • Data sources 

Executive summary

  • Summary findings
  • Pen portrait – company transformation position and key opportunities and challenges
  • SWOT
  • Strategic recommendations for accelerating Telco 2.0 transformation

Marketplace Section

Figure 1: Example output - Verizon - Marketplace section

Telco 2.0 Transformation Index - Example output Verizon Marketplace
  • Summary findings
  • Market economics and digital maturity
  • Telecoms market regulation by country
  • Telecoms market structure and growth by country
  • Market share position by country/segment
  • Share gain/loss analysis by country/segment
  • Strategic positioning by country/segment
  • Operating company portfolio analysis
  • Competitor analysis by market/segment
  • Customer base analysis (pre-pay and post-pay) vs competitors
  • Customer churn rates vs competitors
  • Brand strength vs competitors
  • Customer engagement vs competitors    

Service Offerings Section

Figure 2: Example output - Verizon - Service Offerings section

Telco 2.0 Transformation Index - Example output Service offerings
  • Summary findings

  • 6 service offering categories defined:

    • Core services

    • Vertical industry solutions

    • Infrastructure services

    • Embedded communications (including M2M)

    • Third-Party business enablers (including identity, marketing, advertising, payments)

    • OTT services

  • Telco 2.0 services strategies defined – ‘Happy Piper’ and ‘Service Provider’

  • Verizon’s Telco 2.0 services strategy

  • Summary performance by service offering category

  • Evaluation of specific services within each service category

Value Network Section

Figure 3: Example output - Verizon - Value Network section

Telco 2.0 Transformation Index Example output - Verizon - Value Network section

  • Summary findings
  • Management team evaluation
  • Corporate vision and goals
  • Culture
  • Organisation structure: fit with Telco 2.0 strategy, maturity, execution
  • Third-party partnerships across 7 industries:
    • Advertising and retail
    • Media and content
    • Network and IT
    • Financial services
    • Start-ups
    • Developers
    • Internet players
  • Partnerships with other CSPs: 
    • Strategy
    • Execution:
    • Vision and intent
    • Conformity with STL Partners’ CSP collaboration principles
    • Evidence of results
  • Strategy

Partnership Strategy
  • Partnership Model
  • Alignment of vision and values
  • Alignment of risk and effort
  • Alignment of rewards
  • Evidence of results
Best-Practice examples

Technology Section

Figure 4: Example output - Verizon - Technology section

Telco 2.0 Transformation Index Example output - Verizon - Technology section
  • Summary findings
  • Technology objectives and priorities
  • Commercial and technology alignment
  • Technology skills, processes, and partnerships
  • Technology execution:  speed and ability to meet objectives
  • Technology positioning vs other CSPs 

Finance Section

Figure 5: Example output - Verizon - Finance section

Telco 2.0 Transformation Index Example output - Verizon - Finance section
  • Summary findings

  • Financial performance: profitability, return on investment, debt position, capital intensity

  • Finance and Telco 2.0 strategy alignment: use of Telco 2.0 metrics

  • Revenue Model: ability to protect Telco 1.0 revenues and grow Telco 2.0 revenues

  • Cost Model: Capital investment and operating cost levels including revenue per employee

Format and pricing

  • 145-page pdf document (PowerPoint format) with internal and external html links
  • 100+ charts and tables
  • Excel data pack with financial, operational, market (competitor) data + STL Partners analysis

Contact us on +44 (0)207 247 5003 or email for further details.

Return to the Telco 2.0 Transformation Index home page, or see more on the Benchmarking Report, Telefonica, VodafoneAT&T, Verizon, Singtel and Ooredoo deep-dive reports.

Industry terms, products and technologies referenced

4G LTE, 4G Venture Forum, ADSL, AWS, broadband, carrier Ethernet, CDN, cloud computing, CloudSwitch, customer churn, digital advertising, digital commerce, digital services, DOCSIS, eHealth, enterprise services, FCC, FiOS, FTTH, GPON, HealthSpot, Hughes Telematics, IAAS, identity, In-Drive, Innovation Centers, Invidi, IP conferencing, IPTV, ISIS, LTE, M2M, managed hosting, managed services, messaging, mobile advertising, mobile payments, Networkfleet, new business models, OC-48, OTT, payments, PAAS, PoC, post-pay, pre-pay, Quest Diagnostics, Redbox Instant, SAAS, Share Everything, SIP trunking, SMBs, SMS, SONET, strategic services, SureScripts, Telco 2.0, TV Everywhere, Ubuntu, U-verse, VDSL, Verizon Digital Media Services, Verizon Enterprise Solutions, Verizon Foundation, Verizon Precision Market Insights, Verizon Terremark, Verizon Universal Identity Service, Verizon Wireless, voice, VoIP.