From Telco to TechCo: Adapting in Times of Change

The telecommunications industry is undergoing rapid digital disruption, presenting challenges and opportunities for telecom operators. Despite significant capital investments to develop 3G, 4G, and 5G networks, operators have struggled to generate adequate value over the past decade. This underperformance, coupled with an inability to fully capitalize on infrastructure spending, has led to diminishing returns for the industry.

To address these challenges, operators must shift their focus from network-centric to customer-centric operations. This shift entails adopting a range of strategies, including operational revamps, cost reduction initiatives, and innovative value propositions (with Yuvo playing a pivotal role as an industry catalyst), supported by investments in 5G, IoT, and Edge technologies. Central to this transformation is the digital revamp of customer experience, supported by AI and automation.

The transition from Telco to TechCo involves leveraging technology to drive growth and unlock new revenue streams, requiring a strategic realignment toward becoming technology companies. AI and automation-enabled service operations, coupled with a vendor-agnostic ecosystem, are crucial for enhancing customer experiences and controlling costs, with collaborative partnerships and upskilling initiatives playing essential roles in expanding beyond traditional connectivity offerings.

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The 3 - 5 Years Road Map

Looking ahead, the transformation journey from Telco to TechCo evolves over a three to five-year roadmap, characterized by various milestones and strategic imperatives.

Revamping Operations for Immediate ROI:

-?Capitalize on 5G, IoT, and Edge investments to transform CX & service development.

- Ensure perfect harmony between front-end and back-end systems (OSS).

Achieving Speed and Accessibility:

- Focus on achieving speed and accessibility to enhance user experience.

- Leverage new digital technologies for unprecedented levels of speed, data access, and automation.

Experimentation, Automation, and 5G Utilization

- Foster a culture of experimentation and automation, embracing open-source technologies for agility.

- Build a robust network enabling fast 5G download speeds and leveraging 5G capabilities for automation, AI, AR, and IoT applications.

Network Expansion & Solution Diversification:

- Invest in IoT, 5G, and private network infrastructure to support evolving enterprise needs.

- Secure a market share in the telco IoT connectivity space and offer comprehensive solutions tailored to customer needs.

Adapting & Enhancing Capabilities:

- Prepare to change business models, prioritize cybersecurity, and renew focus on customer intimacy and engagement.

- Implement data-driven approaches to enhance customer experience and drive profitability.

Sustainability & Digital Evolution:

- Deliver on ESG commitments, drive industry de-carbonization, and provide a rich customer experience to enhance loyalty.

- Harvest the benefits of modularizing and digitizing legacy solutions to streamline operations.

Continuous Improvement & Innovation:

- Embrace continuous mode of operation for ongoing digital evolution and monetize services through network convergence with cloud, IoT, and MEC.

- Consolidate data centers for streamlined operations and partner with ecosystem players for new technology adoption and service offerings.

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How Can Telcos Succeed in Launching New Businesses Beyond Connectivity?

Customers are demanding more efficient resource utilization, driving the transformation to TechCo through digital connectivity technologies. Operators, with their guiding force and extensive reach, are well-positioned to serve a broader customer base. While they've made significant progress in digitizing legacy solutions, there's still more to be done. Telcos must prioritize financial investments that align with a blend of skills, a culture of experimentation and automation, and a strong appetite for investment to navigate the transformation effectively.

In today’s fast-paced, software-defined environment, telcos are compelled to adopt a Tech-First mindset. However, they recognize the importance of maintaining exceptional service quality to retain their current subscriber base during this transformation.

This raises the question: Do you have a clear automation strategy? While automating operations can bring substantial benefits, no use case has fully matured for a completely automated landscape. With several core telecom services already disrupted, are you ready to embrace additional ones? Do you possess the capability to shift from providing connectivity to offering comprehensive solutions? It's crucial to establish a clear automation strategy and implement the right tracking KPIs to thrive in this evolving landscape.

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As telcos transition from Telco to TechCo, they face both challenges and opportunities in the rapidly evolving telecommunications landscape. By prioritizing innovation, investing in technology, and fostering a culture of adaptability, telcos can navigate this transformative landscape with confidence. Embracing automation, digitization, and strategic partnerships will not only secure a competitive edge but also position telcos as leaders in shaping the future of telecommunications.