Communications Service Providers ( CSPs ) understand all too well that digitalization in the world has not yet translated into new value for themselves . Continuing a trajectory of cost cutting is only going to be a race to the bottom . The industry is at a turning point .

The European Telecommunication Network Operators – ETNO – recently issued the “ Lead or Lose ” report , based on Accenture Strategy research , that looks at Europe ’ s digital future . It defined three foundational capabilities for success : an ecosystem built around the Internet of Things , pervasive digital networks and institutions reinvented as digital entities .

Networks are at the heart of these developments , but will CSPs be leaders , utility providers or subsidiaries of foreign disruptors ? To flip the race to the bottom to a “ Race to the Top ”, CSPs need to grow their core business while transforming it but scale new “ S curves of growth ” by innovating their own and 3rd party digital services which can potentially gain much broader reach across a platform-based ecosystem .

Accenture has defined four growth models , but also pinpointed fundamental moves for CSPs to insure their future success , starting right now .

Hyper-personal , hyper-relevant Get as close as possible to the customer and become part of their “ Digital Daily Routine ”. That requires personalization and contextualization , with an omni-channel customer experience providing services that understand customers , rather than the other way around .

Embed intelligence to monetize CSP strengths Develop beyond data and analytics capabilities and embed intelligence via a cognitive technology platform at the core of the CSP . In digitally-driven future ecosystems , the orchestrators — the operators who own the data and therefore can be the first touchpoint and define what a customer gets and when and how — will have disproportionate power over the whole value chain . Through automation , artificial intelligence ( AI ) and continuous learning , the “ CSP Brain ” opens new possibilities for creating and monetizing innovative services for customers via trusted third parties across an expanding ecosystem .

In a digital future that ’ s evolving at an everaccelerating pace , CSPs possess a crucial advantage : a primary relationship with the customer . At Accenture , we are working with many Tier 1 CSPs to help them transform their way into the champions ’ circle . They have strengths that the disruptors can ’ t buy – identity , quality of experience , security and billing relationships , which can be turned into tradeable assets for the ecosystem .