Market Trends

Telcos Must Adapt to Meet Rising Enterprise Demands

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Telecom operators face significant challenges as they seek to meet rising enterprise expectations. With digital transformation trending, enterprises now expect telecom companies to provide tangible business results rather than just connectivity. However, a recent study by the Capgemini Research Institute reveals that many operators fall short. This study found a startling gap: while 74% of enterprises desire telecom providers to drive business growth, only 39% feel their operators succeed.

The discrepancies extend beyond technology to broader issues like business models and the use of emerging technologies. This gap signals potential misalignment in defining success and approach. In a discussion, Arun Santhanam from Capgemini highlights several key areas where telcos stumble.

Firstly, telecom operators often miss the mark in delivering customized solutions. Despite 69% of enterprises asking for tailored responses, only 37% of telcos meet these needs. This is an organizational issue rather than a technical one. Enterprises want a cohesive experience and risk-sharing partnerships, but they often face fragmented interactions across different telco teams.

While enterprises see network APIs and slicing as potential revenue streams, the development of clear monetization models remains slow. Success stories exist in network-based security APIs, which significantly curb fraud and create visible financial impacts. However, complex API categories like edge computing face hurdles due to incomplete readiness at the enterprise level.

Another area of contention is the ecosystem orchestration role. Though enterprises look to hyperscalers for expertise in AI and cloud, they desire operators to integrate various providers under unified service agreements. Telecom operators, with their extensive infrastructure and regulatory history, have an opportunity to step into this role.

As enterprises explore non-terrestrial networks (NTN), a maturity gap poses challenges for operator credibility. Effective technological advancements and transparent pricing can address these gaps, but real progress hinges on proven deployments and commercial success stories.

To ensure future success, Santhanam recommends telcos focus on AI integration across operations. Enterprises increasingly expect networks to self-heal through AI-driven solutions. By embedding AI deeply, operators can achieve operational efficiency and gain market credibility. Operators failing to embrace this transformation may struggle in a competitive, AI-driven landscape.

In summary, for operators to stay relevant and successful in the enterprise space, they must address organizational barriers, foster ecosystem partnerships, and fully integrate AI. By doing so, telecom providers can meet and even exceed enterprise expectations.

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