EY and Ericsson study maps successful mobile operator strategies

• Ericsson and EY collaborate to identify three distinct strategies adopted by successful mobile operators, dubbed Frontrunners
• Successful operators share a common focus on network performance and customer experience; differentiation, innovation and technology approaches vary by strategy
• Frontrunner revenues grew at 9.6 percent CAGR, their competitors at 2.7 percent, while average in markets with no Frontrunners is -1.4 percent (2010-2014)

With traditional revenues under pressure and mobile data use soaring, operators have been forced to evolve both their networks and their business models. Some have been more successful than others. A study from Ericsson (NASDAQ: ERIC), in collaboration with Ernst and Young, has identified and classified these operators as Frontrunners. Between 2010 and 2014, Frontrunners enjoyed a 9.6 percent CAGR while competitors in their markets achieved only 2.7 percent.

In undertaking this research, the results of which are launched today, Ericsson has identified three distinct strategies adopted by Frontrunners. Significantly, what is good for the end user is also good for the operator.

Frontrunner strategies:

• Quality-led progression: These Frontrunners differentiate through high-performing networks and high brand preference 
• Market-led adaptation: Includes Frontrunners that differentiate through quick adaptation to market conditions
• Offering-led transformation: Refers to Frontrunners that differentiate by being first to market with uniquely designed offerings

The study also revealed a number of ways in which Frontrunners are similar including their views on connectivity and services as differentiators rather than commodities, and their focus on innovating new revenue streams rather than maximizing old ones. Frontrunners display greater interaction between marketing and technical roles, rather than the traditional silos, and they leverage network performance by either utilizing superior network performance as a differentiator or by improving network performance to meet customer expectations.