2019 Unlock the possibilities of technology to support your digital transformation journey Featuring exclusive research from Gartner. An era of change The international business landscape is constantly changing and carriers must also adapt to best serve their customers. Telefónica is leading the way with the new technologies and strategies that are shaping communications today, Across the world, economies and helping our customers to prepare for the future societies are being fundamentally and capture new opportunities. transformed by digitalization. New disruptive technologies are changing I hope you find the enclosed exclusive research the way societies face crucial about disruptive trends for CSPs from Gartner of challenges and it is important that the interest. wholesale community’s strategies evolve in parallel and in response to this wider consumer paradigm shift. Juan Carlos Bernal CEO, Telefónica International Wholesale Business Telefónica’s four major, distinctive technological The transformation of Telefónica’s transformation journey platforms. The first platform consists international wholesale business is of our physical assets, such as centred on key fundamentals; the During the last few years, Telefónica networks and data centres, whilst the way it offers core services to maintain has been immersed in a period of second relates to operations and leadership and differentiation, and the transition with the end goal to meet commercial systems along with IT need to constantly improve services our customers’ growing expectations management systems which support with better access options through and retain their trust to ensure long the network. The third platform is satellite, fibre, mobile, and radio, and term commercial success. about delivering the best products and widening coverage for ITFS, SIP Trunk services, while the fourth platform and Ethernet services. Applying innovation to the way we do leverages the real value of customer business, operate and collaborate has knowledge, closely linked to Big Data “Applying innovation to the way we been key to this process. This and Artificial Intelligence. do business, operate and philosophy has been applied to our collaborate...” Network evolution - key pillar of growth Our network is one of our greatest structured in a more dynamic Full as well as monetize every subscriber assets, and connectivity is at the very Stack System, placing our customers interaction. We also have a worldwide heart of our business. Whilst we have in control. IPX transport service which leverages invested in our fixed and mobile our roaming and signalling services networks, the future is digital and as Enhancing Core Services and extensive A2P/P2P messaging such we are evolving towards a flexible, - through open and efficient coverage. Furthermore, we are programmable, software-based, redesign evolving our Messaging platform to future-proof network. Our journey will respond to the increasing demand for allow us to transform our transport and We are continuously enhancing our rich communication services. core infrastructure in all geographies; international wholesale portfolio. In improving communication capabilities Voice services we have been improving New Digital Services for all of our customers. routing automation and fraud detection - innovating to stay ahead systems, and extending the coverage of our ITFS and Voice in the Cloud At the core of our platform strategy is a “...the future is digital and as such services. At the same time, we have firm commitment to the advancement we are evolving...” begun to support VoLTE traffic. of our technological innovation Automation and virtualization capabilities and integration of new - fundamental for the future of In our Carrier Enterprise family of technologies, like the Internet of networks services we are providing new SD- Things, Big Data, Artificial Intelligence, WAN and Cloud services which deliver Cloud, Security and other digital Automation and virtualization are automatic and on-demand network solutions. Digital transformation brings already an essential part of our services to meet corporate customer countless opportunities for Service networks, whilst Network Softwari- requirements. In addition to our Providers, but the industry also faces a zation is transforming how services are extensive coverage of MPLS, Ethernet challenge to manage the transition deployed, delivered and consumed. or Internet services, we are fully from traditional services and traditional supporting the industry’s effort to sources of revenue to new digital ones. The automation and softwarization of develop APIs to provide end-to-end, This is where an innovative and our infrastructure and services allows inter-carrier service settlement. experienced wholesaler such as us to orchestrate services in a more Telefónica International Wholesale dynamic, flexible and efficient way Our portfolio of Satellite services Services (TIWS) can help other service whilst improving all processes: pricing, enables us to provide a complete providers to succeed. ordering, provisioning, ticketing and approach in terms of coverage and billing. It also provides an opportunity combined service solutions, allowing We have made considerable effort to to enhance customer experience; a our customers to reach any location establish a Digital service portfolio major factor for business success. across continents. that meets the needs of the wholesale market. As a result of that focus, we We have a fully virtualized network In addition, within our Mobile services have achieved great success with IoT system, which enables our customers we have developed Marketing services, either coverage or to access a virtualized platform, Campaigns Manager, which allows coverage+service platform, and available worldwide, in order to extend operators to generate personalized security services which can be their own infrastructure and products campaigns, in real-time and through embedded into the connectivity. globally. Furthermore, we have made multiple channels, helping them to significant investment in automation increase their revenues and create “...we have achieved great success tools meaning our BSS and OSS is new business models for third parties, with IoT services...” Looking to the future Transformation is a continual journey Telefónica’s competitive catalogue of of being able to deploy at a global level and unlocking the possibilities of new services, combined with extensive and execute at a local level, makes us technologies and harnessing their experience gained from having over well placed to face all the challenges potential will enable us to build both 340 million customers operating in 17 that lie ahead and to continue to for ours and our customers’ future. countries, as well as the combination deliver for our customers. About Telefonica International Wholesale Services Telefónica International Wholesale Services (TIWS), the wholesale carrier of the Telefónica Group, provides world-class wholesale services to fixed and mobile operators, service providers, carriers and OTT-Media companies. Our comprehensive global portfolio includes Voice, Carrier Enterprise, Mobile and Satellite services, innovative Digital solutions (Security, Cloud, IoT, Big Data) and end-to-end solutions for enterprises. As a leading global provider of a wide range of integrated communication solutions, Telefónica has a global footprint, with presence in over 40 countries (particularly strong in Latin America & Europe) and service reach in more than 170 countries. For more information, visit our website: wholesale.telefonica.com [email protected] @telefonicab2b Research from Gartner: Market Trends: Top Five Disruptions for CSPs, Worldwide, 2018-2023 A slew of new technologies will disrupt to link these technologies with New technologies continue to enter the communications service providers’ business implications, as well as market at an accelerated pace, business models and the industry identify promising, novel use cases. impacting the CSP’s established structure. This research helps CSPs’ business and operating models. The technology business unit leaders to • Rejuvenate the workforce by pace of change will challenge the ability respond effectively and capture reskilling and retooling existing of even the most capable CSP opportunities as they arise. employees. Revise incentives and organization to adapt and respond. key performance indicators to drive Key Findings change. Increase the ability to Gartner identified four primary attract talents by revamping the disruptive trends arising from new • New technologies such as open- traditional CSP image and technologies for 2018 to 2023 as source software, virtualization, introducing modern digital shown in Figure 1. These four disruptive wireless edge computing and workplace practices. trends in turn create a secondary artificial intelligence can radically disruptive trend onto the CSP’s alter business relationships and Introduction workforce — the nature of work in CSP competitive structures. In the organizations will be radically future, communications service As part of Gartner’s communications transformed over the coming years. providers (CSPs) may even compete service provider (CSP) research, we directly with some of their network have been identifying major disruptive “By 2023, over 35% of roles in CSP equipment provider partners. trends that will impact CSPs’ business organizations will either be new or prospects and market competitiveness. redesigned.”