Cracking the B2B client-segmentation code

Investment Rating - The report does not explicitly provide an investment rating for the telecommunications industry or communications service providers (CSPs) Core Insights - The current segmentation strategy used by most CSPs is outdated and hinders their ability to capture value from the growing ICT market [4][5][33] - CSPs can succeed in the ICT space without becoming systems integrators by adopting a more effective segmentation approach focused on place type rather than size or industry [33][34] Summary by Sections Current Market Dynamics - The ICT services market is experiencing growth, but many CSPs struggle to extract value due to ineffective B2B customer segmentation [3][4] - CSPs have not achieved significant value from ICT, with many emulating system integrators with limited success [5][6] Segmentation Challenges - Traditional size-based segmentation fails to provide insights into service portfolios and does not address decision-makers' needs for CAPEX-to-OPEX shifts [9][10] - Vertical segmentation is inadequate as it does not account for the specific needs of different niches within industries [12][13] Proposed Segmentation Strategy - A new segmentation approach based on "place type" is recommended, allowing CSPs to identify and address opportunities that align with their strengths in connectivity [17][20] - This approach emphasizes commonality in connectivity requirements and use cases across similar places, leading to more effective marketing and service delivery [22][23] Case Studies and Examples - Telstra's partnership with the Australian Football League demonstrates the successful application of place-based segmentation, providing tailored digital solutions for stadiums [20][21] - A European incumbent showcased a canvas of opportunities for a manufacturing company, focusing on increasing labor, equipment, and material efficiency through connectivity solutions [28][29] Conclusion - CSPs can enhance their profitability and market position by shifting away from outdated segmentation methods and focusing on local, place-related opportunities that leverage their connectivity capabilities [33][34]