The Structural Separator: a proposed future value play for CSPs from Accenture leaders.

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Structural
Separator
CSP future value play
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Cloud
AI
Big Data
B2C,
B2B2C
B2B,
B2B2B
SMB
In-house
Ecosystem
Powered
X- Industry
Core Telco
The value plays SMB
Activator
X-Industry
Orchestrator
Structural
Separator
Two freestanding
businesses: one
that operates the
network (NetCo)
and one customer-
facing entity
(ServCo)
Connected
Consumer Platform
Connectivity
Optimizer

3. TheStructural Separator
Address pressures by exploring innovative structural separation
models -- by splitting into two freestanding businesses: a
network operator and a service-oriented organization, so you
can maximize returns and reap the benefits of both.
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The why The what The how
Muted growth, high leverage
and investment-heavy 5G are
driving CSPs to consider bold
structural moves.
Revenue stagnation, declining
ROIC and low investment in
R&D are taking their toll.
Simplifying operations and
revenue streams and focusing
on new products and services
fuel the need for network
separation.
The Structural Separator play
splits CSPs into two free-
standing businesses: one that
operates the network (NetCo)
and one customer-facing
entity (ServCo).
The NetCo provides the
revenue stability and the
expansion capabilities for the
5G mesh network.
The ServCo is focused,
innovative and agile to market
dynamics, unsaddled with
tower operations.
The recommended CSP
approach must be right for
the regulatory environment,
market context and ability
to execute.
There are 3 standard models:
1. Asset-holding
2. Operational asset joint
venture
3. Independent transfer
A split provides numerous
benefits to CSPs, ranging from
improved operations to new
revenue streams.
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Separation presents numerous
benefits, from improved operations
to new revenue streams
The opportunity
ROIC and market value improvement
• Improved Leverage
• Reduced Cost of Capital
• Higher Valuation
New ways of monetization
• Wider market access
• Lease-up of towers
• Future 5G operations
More focused management
• Increased operational focus
• Business efficiencies
Access to broader market, lease up of
physical space on existing tower and 5G use
case opportunities
Strategy and budget can be directed based
on specific needs of ServCo and NetCo
NetCos have ~2x EBITDA margin and
1.6x market value when compared to
integrated CSPs
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6. Thank you
Copyright © 2021 Accenture. All rights reserved.
To learn more visit | accenture.com/reset-reinvent-rebound