Understanding CSPs in the B2B2X ecosystem

Communication service providers (CSPs) across the globe are witnessing stagnation of traditional revenue streams in their core service. 

B2B2X is an emerging business model that is seen as a natural extension of existing business models, wherein CSPs can integrate traditional telecom and technology services into a new breed of service offerings used by enterprises to provide services to any type of end customer.

B2B2X business models

While many different B2B models have been implemented, there are three key business models observed in the B2B2X ecosystem:

• End-to-end provider model
• Connectivity owner and lead ecosystem partner model
• Solution owner and lead ecosystem partner model

B2B2X business model trends

Global trends

• Partnerships with technology firms to develop solutions using emerging technology
• Partnerships with sector-specific players to develop vertical-specific solutions
• Investing in developing in-house applications or platforms
• Investing in end-to-end service provisioning platforms

MENA regional trends

CSPs in MENA are shifting to an open architecture to enhance their flexibility and agility to deliver B2B2X solutions. This also enables them to incorporate more sophisticated product bundling and provide an industry-standard configuration, price and quote framework.

Key challenges for CSPs in the B2B2X ecosystem

• Existing assets and capabilities not flexible enough to develop custom solutions in the B2B2X ecosystem
• Current pricing models restraining innovation in B2B2X value proposition
• Security concerns associated with 5G networks being used in the ecosystem
• Becoming susceptible to sector-specific risks
• Adapting to the B2B2X ecosystem requires adjusting to changing ecosystem dynamics

What CSPs should do to be successful in the B2B2X market

To emerge successful in the B2B2X market, CSPs should brace themselves for a holistic transformation across various dimensions of their business and operating model, as described herein:

• Set up GTM models that are clearly built on strengths
• Build a clear value proposition through the identification of verticals or use cases
• Set up the right financial strategy for the business to maximize enterprise value and return on invested capital (ROIC)
• Define an organization to deliver on the value proposition with the right forms of governance and supporting key performance indicators (KPIs)
• Acquire the capabilities to enable success and set up an agile and innovative culture
• Build adaptable and scalable platforms that can be leveraged for a variety of use cases
• Identify the right partners and integrate them
• Engage and collaborate with regulators

Read the report here.