WEBVTT 00:00:00.280 --> 00:00:01.840 Vaishali, Franck, welcome. 00:00:02.440 --> 00:00:06.640 You both produced a report recently on performance of telcos. 00:00:06.640 --> 00:00:09.640 Vaishali, if you would, just give me an idea of what you found. 00:00:10.040 --> 00:00:11.400 I'll have to keep it short. 00:00:11.400 --> 00:00:12.840 There's a lot of things in it. 00:00:12.840 --> 00:00:19.120 It's our annual value creation for telco report and maybe just three or four highlights. 00:00:19.120 --> 00:00:22.760 The first is telcos continue to face challenges. 00:00:22.760 --> 00:00:26.840 If we look at the average, what we call total shareholder returns 00:00:26.840 --> 00:00:30.920 for telco as a sector, it fell to 4% from 6%. 00:00:30.920 --> 00:00:35.240 But there are also bright spots, which I'll get to later in our conversation. 00:00:36.320 --> 00:00:39.600 Additionally, when you look at different segments of 00:00:39.600 --> 00:00:44.600 telcos, the global telcos, for example, have performed worse on average than the 00:00:44.600 --> 00:00:48.360 larger national telcos or the smaller national telcos because it's getting 00:00:48.360 --> 00:00:51.720 harder to realize synergies across countries as well. 00:00:53.760 --> 00:00:58.960 Additionally, if you look at the average, what we call return or ROIC on invested 00:00:58.960 --> 00:01:02.400 capital for telco as an industry, for the first time, 00:01:02.400 --> 00:01:04.600 it's fallen below cost of capital. 00:01:04.960 --> 00:01:07.120 Now, as I said, there are bright spots. 00:01:07.280 --> 00:01:12.360 Fifty out of the 73 companies in our sample did deliver value creation in this 00:01:12.360 --> 00:01:13.800 last five-year period. 00:01:14.160 --> 00:01:17.480 And we can talk more about how they did it and what happened, 00:01:17.480 --> 00:01:19.320 but just a few snippets. 00:01:19.320 --> 00:01:23.040 Vaishali, what innovations, what key trends do you think that telco 00:01:23.040 --> 00:01:25.880 should be focusing on right now? 00:01:26.400 --> 00:01:27.560 I would say two areas. 00:01:27.560 --> 00:01:29.720 One is AI and GenAI. 00:01:29.720 --> 00:01:34.040 How do you really pick a few areas, a few domains as I call it, 00:01:34.040 --> 00:01:36.000 really go deep, 00:01:36.000 --> 00:01:40.480 drive outcomes and real tangible value at scale that makes a real delta. 00:01:40.960 --> 00:01:41.760 So that's one. 00:01:41.920 --> 00:01:44.000 And the second one I would say is B2B. 00:01:44.000 --> 00:01:47.040 Which is really business to business. 00:01:47.280 --> 00:01:51.760 It's an area that has been long neglected, often seen, as you know, 00:01:51.760 --> 00:01:56.800 the second cousin to B2C. But I really think there are so many opportunities, 00:01:56.800 --> 00:01:59.440 whether it's driving agencies in the 00:01:59.440 --> 00:02:03.960 small to mid market or it's really capturing the value from this AI 00:02:03.960 --> 00:02:09.080 ecosystem as well as the need for sovereignty in the large enterprise space. 00:02:09.080 --> 00:02:14.320 So there's a lot more that we can get from the whole B2B space as a growth 00:02:14.320 --> 00:02:15.400 engine as well. 00:02:15.400 --> 00:02:19.560 So those two would really be in my mind the two big ones. 00:02:19.560 --> 00:02:20.480 Franck, anything you'd add to that? 00:02:21.040 --> 00:02:24.120 Let me try to add two to these two big ones. 00:02:24.360 --> 00:02:30.360 I think we'll also see significant modernization of architecture and 00:02:30.360 --> 00:02:33.480 networks, so next-gen architecture, 00:02:33.480 --> 00:02:36.200 cloud-based architecture that will really 00:02:36.200 --> 00:02:39.080 drive a lot of changes and a lot of benefits for telco. 00:02:39.680 --> 00:02:44.760 And if I need to pick a second one, I would say satellite is of interest of everybody. 00:02:44.760 --> 00:02:49.440 New constellations can be game changer, especially in remote areas or less 00:02:49.440 --> 00:02:50.320 covered areas. 00:02:50.640 --> 00:02:53.600 So we'll see a lot of innovation also on the infrastructure side. 00:02:54.040 --> 00:02:55.680 Franck, Vaishali, thank you so much. 00:02:55.680 --> 00:02:56.600 As always, a pleasure. 00:02:57.160 --> 00:02:58.040 Thank you, Georgie. 00:02:58.040 --> 00:02:58.760 Thank you, Franck.