Digital transformation is emerging as a key driver of sweeping change in the world around us. It has the potential to significantly improve consumer lives and create broader societal good, while providing businesses with new opportunities for value creation and capture. The telecommunications industry is at the forefront of this transformation, both as an industry witnessing large-scale change in its market environment and as a key driver of worldwide digitization. Investment by the telecommunications industry in technology and interoperability has underpinned an immense shift in information and capital flows through the global economy, while providing the building blocks for the emergence of entirely new business models across industries. In parallel, access to a globally connected network has empowered millions of people around the world, by giving them access to real-time information, marketplaces and social programmes that will have long-term implications for quality of life. It is clear that digitization will be a source of transformational change, but there are a number of challenges that need to be overcome. In many cases, the gains from digitization have been inequitable, with the benefits not reaching those who need them most. At the same time, the exponential increase in global information flows has created new risks for data privacy and security. Businesses across sectors are grappling with challenges related to changing customer expectations, cultural transformation, outdated regulation and skill shortages, among others. The World Economic Forum is committed to helping leaders understand these implications and supporting them on the journey to shape better opportunities for business and society. The Digital Transformation Initiative (DTI) is a project launched by the World Economic Forum in 2015 to serve as the focal point for new opportunities and themes arising from the latest developments in the digitization of business and society. It supports the Forum’s broader activity on the theme of the Fourth Industrial Revolution. In 2015, DTI analysed the impact of digital transformation on six key industries – automotive, consumer goods, electricity, healthcare, logistics and media – and on three cross-industry topics – digital consumption, digital enterprise and societal implications. In 2016, DTI was extended to cover seven additional industries, including telecommunications, and two new cross-industry themes: platform economy, and societal value and policy imperatives. Through its broad focus, DTI has driven engagement on some of the most pressing topics facing industries and businesses today and provided business and policy leaders with an informed perspective on how to take action. This white paper was prepared in collaboration with Accenture, whom we would like to thank for its support. We would also like to thank the members of the World Economic Forum’s Telecommunications Industry Steering Committee and the more than 40 experts from industry partners, government and academia who were involved in shaping the insights and recommendations of this project. We are confident that the findings will contribute to improving the state of the world through digital transformation, both for business and society.