• GenAI emerges as the latest value-enhancer for global telcos, transforming customer support into a cost-effective, efficiency-driven domain.

Doha — Qatar’s Ooredoo has been distinguished as the ninth highest value creator in the global telecommunications sector, as per the insights from Boston Consulting Group's (BCG) 2024 Telco Value Creators Report. Demonstrating a robust progression with a 13% total shareholder return from 2019 to 2023, Ooredoo has commendably resulted in  substantial value creation of USD $5 billion over the same period. In addition, Ooredoo reported an impressive market capitalization of USD $10 billion in 2023, marking a significant achievement within the industry.

The BCG report, titled “A New Formula for Success: The 2024 Telco Value Creators Report,” explores how telecommunications players have overcome challenges, such as stagnant revenue streams and varying investment returns, particularly from sizeable outlays like 5G networks.

"In the telecommunications sector, Qatar is setting a benchmark for the future, with its National Vision 2030 underscoring the pivotal role of digital transformation alongside traditional values," said Nuno Gomes, Managing Director and Partner at BCG. "The strategic integration of cutting-edge technologies like AI, cloud computing, and big data, aligned with the nation's holistic goals of human, social, and economic progress, exemplifies a model for driving value growth. Like industry leaders such as Ooredoo, Qatar's dual focus on nurturing its core telecommunications infrastructure while venturing into new digital horizons is a testament to its commitment to achieving a sustainable and advanced society."

Predominantly agile and future-forward Telco players have played an instrumental role in driving digital transformation, diversification, and quality-of-life enhancement that aligns with Qatar’s national development ambitions. While Telco providers in Qatar are direct protagonists in strengthening connectivity and modernizing infrastructure, their continuous innovation allows for greater impact in advancing critical sectors such as healthcare, education, and finance as well as bettering citizens’ daily lives through strong connectivity and innovative offering.   

The report outlines a roadmap for value generation in the telecommunications domain, which resonates with Digital Agenda 2030 outlining Qatar’s comprehensive plan for digital transformation by accelerating digitalization and technology adoption. Through this framework, telecom operators like Ooredoo can establish themselves for enduring growth and bolstered market competitiveness amidst a dynamically evolving digital backdrop.

Key Strategies for Telco Success in Qatar:

Drawing from an extensive analysis spanning five years, BCG has meticulously studied the performance and strategic approaches of 59 telco companies worldwide. Through this comprehensive research, highlighted in "Telecommunications Value Creators Report," BCG reveals a new, pivotal formula for success that will guide telcos in achieving unparalleled value creation and competitive supremacy in 2024 and beyond.

  • Uphold the Core: Strengthening foundational services with AI to enhance customer loyalty and satisfaction.
  • Catalyze Growth Beyond the Core: Capitalizing on the burgeoning digital economy with novel services that resonate with Qatar's progressive market demands.
  • Optimize Asset Usage: Refining existing infrastructure to boost cost efficiency and service delivery.
  • Streamline Costs: Employing automation and AI to enhance operational efficacy and curtail costs.
  • Transition to Core-to-Cloud: Adopting cloud-based systems to foster flexibility and expandability.
  • Implement Cutting-edge Network Design: Progressing network capabilities to facilitate the swift introduction of innovative services.

By incorporating these strategies into their operations, telecom operators in Qatar can generate significant value, aligning with Qatar National Vision 2030 to transform Qatar into an advanced society capable of sustaining development and providing a high standard of living for its people by the year 2030.

Embracing the GenAI Revolution: Transforming the Telco Landscape in Qatar

Telecom leaders around the globe are tapping into the power of Generative Artificial Intelligence (GenAI), judiciously navigating its potential. Preliminary uses in automating tasks, personalizing offerings, and revamping business processes indicate substantial strides toward commercial prosperity. Given the elevated expectations of customers and the swift pace of digital adoption in the Gulf Cooperation Council (GCC) region, GenAI can potentially be a transformative force for telecom companies. Key focal points include enhancing customer service via AI-driven chatbots, developing potent sales strategies with highly tailored marketing initiatives, and boosting operational efficiency by automating various telecom processes.

Telecom operators in the GCC are encouraged to incorporate GenAI into their strategies, following the "10-20-70" maxim. This involves allocating 10% of the effort to constructing algorithms, 20% to establishing tech frameworks and formulating premium data streams, and a substantial 70% to orchestrating and executing operational metamorphosis, focusing on personnel, processes, and change management. The potential gains from GenAI for Qatar telecoms are extensive, ranging from cost mitigation to creating innovative products and improved consumer experiences. GenAI is driving rapid transformations across all sectors, with telecoms quickly embracing the trend and setting a benchmark for other digital industries.

"The telecommunications landscape in Qatar is being rapidly transformed by digitalization, with strategies that prioritize agility and innovation playing a key role," highlighted David Panhans, Managing Director and Senior Partner at BCG. "Qatar's telcos are ahead in implementing tailored services for both B2B and B2C segments, guided by the comprehensive vision in the Qatar National Vision 2030. Eschewing one-size-fits-all solutions in favor of adaptable market-entry and expansion strategies, the country's telecommunications sector is adept at navigating the swiftly evolving digital ecosystem."

As the telecommunications sector continues evolving and presenting unique challenges, companies like Ooredoo stand out through strategic foresight and agility. These industry leaders provide invaluable insights into their successes, illustrating how the amalgamation of regional-specific strategies can forge a path to persistent growth and sectoral preeminence.

About Boston Consulting Group

Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. BCG was the pioneer in business strategy when it was founded in 1963. Today, we help clients with total transformation—inspiring complex change, enabling organizations to grow, building competitive advantage, and driving bottom-line impact.

To succeed, organizations must blend digital and human capabilities. Our diverse, global teams bring deep industry and functional expertise and a range of perspectives to spark change. BCG delivers solutions through leading-edge management consulting along with technology and design, corporate and digital ventures—and business purpose. We work in a uniquely collaborative model across the firm and throughout all levels of the client organization, generating results that allow our clients to thrive.

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