Over the past few years, Atos Consulting has developed an extensive vision on the direction of the Telecommunications market (Telco). Our latest view is that traditional Telcos will have to focus on being either a Brand or a Pipe.

At the end of 2011, we interviewed board members and directors of eight leading international Telcos and combined the results with our own research and knowledge. This led us to the conclusion that the ‘Brands and Pipes’ scenario (with a “sniff” of User’s Choice) is the most likely outcome.

The Brands and Pipes scenario describes a world in which Brands are operated separately from the Pipes. Brands would buy their infrastructure needs from specialized infrastructure companies and Pipes would specialize in infrastructure and servitization. If this scenario comes true, it will be the end of the traditional Telco that integrates its Brands and Pipes.

This white paper outlines the four scenarios described in the previous white paper Business Models in Time and the developments that are leading the sector towards the Brands and Pipes scenario. We then show how companies can prepare for this scenario and what the key requirements are to be successful as either a Brand or a Pipe.

We hope that this white paper will help Telcos in forming their vision of the future and in defining the tactical moves to prepare for the Brands and Pipes scenario.