Embracing the Telecom Shift to NetCos and ServCos: 3 Strategies for CSPs

Rahul Kumar also stressed the delicate balance operators must maintain between pursuing growth objectives and competing priorities, like customer centricity and data security. Keeping a dual focus on driving innovation and guarding customer data is imperative for CSPs to earn their continued trust and loyalty.

Panelists unpacked another major challenge for today’s operators: realizing returns on their substantial investments in digital transformation.

“They’ve invested a ton of money in network infrastructure and moving to 5G and getting systems in place, Chad Dunavant said. “That hasn’t led to this massive increase in revenue. And then the question is, why?” He went on to propose that the answer lies in CSPs’ monetization strategies. Instead of working to convince people that they need more of what they already have by offering faster speed at the consumer level, Chad suggested that operators may fare better shifting their efforts to the enterprise space and monetizing the network. The question for operators then becomes how to participate in new ecosystems and implement the necessary systems to support such a transformation.

How Technology Can Help CSPs

To overcome those top challenges, CSPs need to embrace technology in ways that meet customers’ needs and win returns on network infrastructure investments. Applied strategically, tools like AI can improve much more than operational efficiency. Panelists discussed the transformative potential of several technologies, including:

• AI and automation: CSPs expect AI to help them slash operational costs, but panelists also challenged them to apply it toward maximizing customer engagement to differentiate their brand and stand out in the digital-first market.

• Cloud architectures: Moving to cloud gives CSPs more agility to test new things quickly and cost-effectively. For data that is subject to changing regulations and security standards, they can apply a hybrid cloud approach to those workloads.

• Quantum computing: As cyber threats become more sophisticated with widespread use of quantum computing in the not-too-distant future, CSPs should proactively secure data with quantum-safe techniques to protect assets when the capability becomes available.

3 Strategies to Embrace the Telecom Shift Today

Time is of the essence—operators shouldn’t wait to start taking steps toward NetCo and ServCo business models. During the webinar, panelists recommended three mindset shifts that can set CSPs up for success as they address industry challenges.

Start small to stay agile

Pick one part of the business to become digital-first, Chad advised. Many operators are working within legacy infrastructures, and it may be impractical—or intimidating—to transform the entire system at once. Instead, prioritize a single concept and modernize it in a quarantined ecosystem.

Approaching the digital-first journey in stages allows operators to test it more quickly and safely than attempting to apply it to the larger organization.

Look beyond connectivity

Panelists agreed it’s time for telecoms to reorient the business model. That may look like venturing into wholesale offerings as a NetCo, but it could also mean pursuing any opportunities to offer products or services in a way that is easily consumable for end users. For instance, Dario pointed out that some operators are catering to enterprises by selling energy products.

Operators can embrace this strategy by asking themselves what additional services they can provide beyond connectivity. In broadening their scope of offerings, they can change the public perception of CSPs and ultimately grow the business.

Prepare for disruptions

Rahul referenced an internal IBM study that predicts the world will see greater natural and geopolitical turbulence in the coming years. “As the custodians of their customers’ trust and confidence and their guardians of connectivity, operators need to start thinking about, how do you anticipate these turbulent events?” He emphasized the need for network resilience so that operators are prepared to quickly pivot and restore connectivity in the wake of major disruptions.