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As a decision-maker in the telecommunications (telco) industry, sticking to the old playbook just won’t cut it anymore. Today, your innovative peers are accelerating their digital transformation game efforts to meet new demands—and evolve from being a telco to a Technology Company (techco).
Becoming a techco has many implications for your company and your team. For starters, you’ll have to:
Shift from hardware to software-driven innovation;
Prioritize customer experience;
Nurture agile, efficient talent;
And build an entirely new business model.
Going through these challenges is well worth the daunting operational (and possibly resource-intensive) process. If you shift to a tech-focused business, you can boost profits by adding digital services, earning from data, and using platform models.
In a nutshell—embracing the techco shift enables you to go beyond just offering basic connectivity services. Read on to explore insights into addressing the challenges above and explore the value of becoming a techco.
Continually Invest in Innovation
Telcos now rely heavily on tech partners to develop new products for them. This limits their ability to innovate and grow independently. In addition, the old way of managing cables, towers, and legacy systems won’t cut it in a fast-paced market where smart, software-based solutions reign.
That’s why you need to invest in modern, automated tools such as network automation systems and cloud-based management platforms. These tools help you reduce downtime, speed up repairs, minimize long-term costs, and boost customer satisfaction.
In addition, with the power of real-time data, new techcos can predict problems before they occur and quickly adapt to shifting demands, ensuring you stay competitive in an industry that’s already racing ahead.
Artificial intelligence and machine learning help you manage networks better by fixing issues automatically, in addition to improving customer experiences by using data to personalize services and automate tasks smartly.
For network techcos, a key step is changing old telecom network setups and adding new functional layers to support selling a Network-as-a-Service model. Digital service providers want to sign up for, use, and manage Network-as-a-Service services one at a time. To do this, network techcos need to build digital platforms that share and sell these features—either on their own or as part of big cloud platforms.
Diversify Revenue Streams
Telco consumer service revenues have stopped growing because services are now the same and competition is heavy. But the business segment is growing faster as clients go digital and new opportunities open up. KPMG believes that tech companies develop a spectrum of innovative services delivered and/or consumed over digital channels.
For telcos, relying solely on revenue from calls, texts, and basic data will eventually lead to market obsolescence. You doubtlessly see the value of diversifying offerings with digital services and reimagining your business model.
Instead of clinging to outdated streams, leverage cloud computing, IoT for smart ecosystems, and robust cybersecurity to build scalable, software-driven platforms that transform basic connectivity into a full-blown digital experience. This will simplify the adoption of game-changing technologies like 5G, edge computing, and low-latency applications.
This empowers enterprises to deploy innovations such as augmented reality training, immersive mixed-reality tools, warehouse automation, real-time asset tracking, telemedicine, industrial automation, and remote drone inspections.
By unlocking multiple revenue streams, businesses can transition to a techco model. It can be done through methods such as platform licensing, Software-as-a-Service offerings, and Application Programming Interface monetization. Additionally, businesses can leverage infrastructure services, revenue sharing, and value-added analytics and customization. This evolution demonstrates that becoming a techco is about rethinking how value is created, delivered, and captured.
Focusing on Customer and Employee Success
Customers now demand fast, personalized, and user-friendly digital experiences, so making customer experience a top priority is non-negotiable.
You can do so by streamlining support with online systems like chatbots and digital help centers for rapid issue resolution. You can also leverage customer data to tailor services that boost loyalty, simplify your apps and portals to avoid confusion and maintain proactive, transparent communication about changes, outages, and new features.
Plus, you must empower users with self-service options to manage their accounts, pay bills, and upgrade services on their own terms, ensuring every interaction retains current customers and attracts new ones.
Although many telcos feel burned out from constant changes, changing how you think is essential. Focus on the business benefits of transformation and try to get all teams on the same page about shared goals, not just tech upgrades.
Moving from telco to techco means training your teams and building a flexible culture. Engineering teams need to learn tools like Kubernetes, Continuous Integration/Continuous Delivery pipelines, and microservices, eventually requiring a shift in culture and tech.
This empowers telcos to innovate faster and adapt quickly to market shifts, especially since skilled tech workers are hard to find and valuable. Techcos build a culture and work environment that attracts the best people. They offer chances to work on cutting-edge projects and tech, provide clear career paths, and help them grow skills.
Build a Plan for Change
Decide how you want to stand out in the techco world by shaping a clear identity that fits market needs and your company’s strengths. Figure out what new skills and tools you require and create a step-by-step plan to develop them.
Additionally, focus on what brings the most value to your business, customers, and stakeholders, and make sure your changes support both growth and daily operations.
Beyond technology, build a workplace that encourages learning, follows rules, and allows new ideas to grow. Work with partners, outside experts, and co-developers to bring in fresh ideas, speed up progress, and reach more customers.
Following these steps will help your company successfully transform into a techco and stay ahead in the digital world.
Conclusion
As telcos become techcos, they deal with challenges like accelerating software-driven innovation, reinventing customer experiences, nurturing talent, and shifting to a new business model.
But despite these obstacles, the future looks bright. Thanks to today’s advanced technology, telcos can uncover new growth chances and smarter market plans, enabling forward-thinking businesses to keep up with modern business and customer demands. In addition, modern tools like AI-driven networks, cloud platforms, and automation will streamline operations, cut costs, and let you predict issues before they disrupt service.
Yes, the journey is tough—cultural resistance, IT risks, and legacy systems loom large. But the reward is clear: Transform into a dynamic techco that leads markets, not follows.
