The High-speed fixed connectivity for large enterprises: operator strategies for differentiation

Fixed connectivity is saturated in high-income markets forcing operators to compete on price, thereby reducing value. This report presents three strategies that operators can use to differentiate fixed services and justify higher prices.



Problem:  fixed services are difficult to differentiate; many regions are saturated and competition is affecting revenue

Solution:  there are three ways for operators to differentiate their fixed services; customer service is the most important



Widespread dissatisfaction with fixed services leaves considerable scope for operators to use customer service as a differentiator

Operators should seek to differentiate at all stages; large enterprises are often dissatisfied before their service is even delivered

There are many opportunities for operators to stand out and drive interest from customers, starting at the beginning of the service value chain

Poor service delivery is a common problem in the industry and can be improved through simple measures

Communication is a fundamental driver of satisfaction; operators should be proactive in sharing successes and failures with customers


Operators’ ICT services potential is closely correlated with satisfaction with their basic services

The integration of ICT into connectivity services with end-to-end SLAs provides a diverse range of opportunities for differentiation

Operators should focus on integrating ICT services that are close to and can augment their current fixed service offering

Operators will need to build an ICT portfolio through acquisitions and partnerships

Case study:  Daisy believes that managing or hosting enterprises’ data leads to strong stickiness and provides an end-to-end managed service


Operators should advance their network offerings with technological developments to gain a competitive edge

 SD-WAN provides operators with multiple opportunities to differentiate on price and quality of service, at least in the short term

Operators should explore network aspects that go beyond bandwidth to improve network performance and flexibility

Case study:  Tata Communications uses SD-WAN to differentiate through a highly integrated portfolio, enforced by its traffic segmentation solution


 Telefónica uses SD-WAN and embedded ICT services to provide an end-to-end ICT ecosystem to enterprises

 Colt believes that superior networks and customer service can differentiate it from competitors whose offerings are more diverse

 Verizon uses a series of tools to simplify what is a complex RFP process


List of figures:

 Figure 1: Operators’ approaches to differentiating fixed services

Figure 2: Revenue and connections of dedicated connections from large enterprises, North America, Western Europe and developed Asia–Pacific, 2013–2022

Figure 3: Net Promoter Score for large enterprise fixed services, by country, 2017)1

Figure 4: Reasons cited by large enterprises for changing fixed services provider, 2017)2

Figure 5: The three stages of the service value chain and their associated KPIs

Figure 6: KPIs and areas of development for operators’ sales procedures

Figure 7: KPIs and areas of development for operators’ service delivery procedures  

Figure 8: KPIs and areas of development for operators’ service assurance procedures  

Figure 9: The percentage of large enterprises that purchase security solutions from an operator by level of satisfaction with their fixed services provider1,2

Figure 10: Operators’ Net Promoter Scores from, and intended churn rates of, large enterprises that did or did not purchase security solutions from their operators2,3

Figure 11: Hypothetical structure of an operators’ ICT portfolio

Figure 12: Levels of interest for operators in ICT services

Figure 13: Examples of acquisitions and partnerships made by operators to gain ICT capabilities  

Figure 14: Daisy’s enterprise portfolio and business continuity services [Source: Daisy]

Figure 15: Benefits of SD-WAN for operators and enterprises

Figure 16: Examples of operators’ partnerships with SD-WAN vendors

Figure 17: Tata Communications’ SD-WAN network

Figure 18: Telefónica’s approach to differentiation

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