NaaS Market Opportunity and Strategic Imperatives
Driving Revenue Shift to the Grow Category
We zoomed in on our product suite, recategorized our offerings, and have now rotated our
focus towards products that are high Customer Lifetime Value¹ and high growth, with next-
generation capabilities
• Market
Business
Strategy to
Products Included
Product Category Maximize Cash Flow
Prioritize growth to:
(Non-exhaustive)
CLV1
2023 Revenue 2027 Revenue
Mix²
Mix²
3-Yr
CAGR³
GROW
•
Future-proof company
Increase CLV potential
VoIP/UC&C, SASE,
SD-WAN, IP, Waves,
Managed Security
-10x
41%
59%
~8%
NURTURE
Maintain customer
spend and loyalty
VPN Data Networks,
Ethernet
~3x
33%
22%
~(3%)
HARVEST
Migrate to Grow
to preempt churn
Legacy Voice, Managed
Hosting, Private Line
1x
18%
11%
~(4%)
Note: Percentages in projections columns do not add up to 100% due to exclusion of "other" category.
1. Metrics represent results relative to Harvest category.
2. Enterprise channel projected revenue excludes financial results of Lumen's EMEA business which is under contract for sale. See "Forward-Looking Statements"
3. Projected FY23-FY26 CAGR.
13 Issued: June 5, 2023
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