There’s a growing need for secure, reliable and local connectivity, compute and data
The telco industry has faced its share of challenges over the past decade, affecting both their consumer and business sectors. From the rise of over-the-top services to the commoditization of traditional connectivity, telcos have had to adapt to a rapidly changing landscape. When they first started focusing on business customers, their revenue bets were on creating new applications and services and ecosystem monetization. This approach hasn’t materialized significant top-line growth due to legacy and inflexible architectures, ecosystem complexity and competition. So, what can telcos do to boost their B2B growth?
Time to rethink network investments
There’s a growing need for secure, reliable and local connectivity, compute and data, which presents a huge opportunity for telcos to capture a larger share of the B2B market. Telcos have a natural advantage here, with their edge-based data centers, secure identity and authentication management and nationwide data processing capabilities, all connected to each other and to client locations.
A telco that successfully moved into the business sector is AT&T. The company now serves nearly 2.5 million of the largest global companies, government agencies and small businesses.
AT&T: An industry case study
One of AT&T’s biggest success stories is FirstNet[1], the nation’s only wireless broadband network built with and for first responders. Created through a unique public-private partnership with the federal government, FirstNet was initially seen as a provocative move.
However, AT&T — as the only major carrier to bid to deliver America’s public safety network — had the foresight and leadership to help build and operate a solution that was desperately needed. Today, FirstNet, built with AT&T has more than seven million public safety connections, adding 20,000 square miles of coverage in the last year and continues to expand coverage based on public safety feedback. Now the largest network for public safety, FirstNet provides critical connectivity across more than 2.99 million square miles with always-on priority and pre-emption across 5G and LTE spectrum – protecting their vital communications from commercial network congestion. Plus, public safety’s dedicated lane of connectivity, Band 14, is deployed across the country from rural towns to major cities, helping ensure first responders stay reliably connected. That’s a huge win.
Zee Hussain, senior vice president of global enterprise solutions at AT&T Business, said: “The public sector was struggling with outdated communications tools in dealing with various natural disasters and other crises, which underscored the need for FirstNet. First responders must have access to and remain connected to crucial communication tools, no matter where they are. Their network must be secure, robust, and interoperable. Interestingly, these qualities—secure, reliable, and local connectivity, compute, and data—are also what enterprises are looking for.”
The shift to advanced connectivity
While we’re seeing that spending on traditional connectivity services is expected to decline, spending on advanced connectivity services is likely to rise, driven by the growing need for solutions like network-as-a-service (NaaS) and secure edge services. All of which require robust connectivity, authenticatio, and provisioning services.
What’s really exciting is that this demand plays right into the strengths of telcos. Unlike previous tech waves dominated by global platform and software players, the next AI-driven wave is all about local, secure data solutions. What this means is that although still heavily dominated by those tech players, telcos now have an opportunity to expand their presence in the value chain.
Government mandates for local sovereignty, such as those for sovereign and private cloud, are creating a niche that telcos are uniquely positioned to fill.
Why telcos have an opportunity with gen AI
In the world of generative AI, telcos are becoming a preferred partner for enterprises. The reasons are clear: telcos offer data proximity and security, which are crucial in an era where data protection and sovereign AI is a top priority. Plus, telcos have the existing network infrastructure and growing generative AI capabilities and talent to back it up.
Zee Hussain on the Opportunity Generative AI Brings to Telcos: “Generative AI isn’t just a tech trend; it’s foundationally critical. By leveraging our robust network and data proximity, telcos can offer enterprises the secure, reliable, and innovative solutions they need to thrive in the AI economy.”
Enterprise demand for single providers
One of the biggest trends in the enterprise market is the growing desire for single providers that can offer both connectivity and advanced technology services, which means there is a broad opportunity for B2B growth.
Despite this favorable position, telcos still have a lot of work to do. Many enterprises are dissatisfied with the current level of service they receive. The main issues are a lack of innovation, a shortage of tailored industry solutions, and a need for more industry-specific skills and capabilities.
Strategic moves:
To seize this opportunity, telcos must take decisive actions:
- Invest in Innovation and Tailored Solutions: Work closely with industry experts to understand the unique needs of different sectors and create solutions that meet those needs. For example, AT&T has partnered with healthcare providers to develop AI-driven telemedicine solutions, showing the potential for telcos to create real value.
- Enhance Technical and Integration Capabilities: Build a workforce skilled in generative AI, cloud computing and edge technologies. Training and enablement programs are crucial to ensure teams can deliver top-notch services.
- Build Strong, Trusted Relationships: Be transparent about your capabilities and limitations and work collaboratively to find the best solutions.
The dawn of a new growth era
The telco industry is at a turning point. The demand for advanced connectivity, growth through partnerships where owner’s economics may not always work, and generative AI solutions present a golden opportunity for telcos to return to profitable growth. By addressing the gaps in innovation, industry-specific knowledge and technical capabilities, telcos can position themselves as the go-to partners for enterprises navigating the new AI economy.
The path forward is clear, and the potential rewards are significant. It’s time for telcos to rise to the challenge and embrace this new era of growth. The future of the industry depends on it.
[1] FirstNet and the FirstNet logo are registered trademarks and service marks of the First Responder Network Authority. All other marks are the property of their respective owners.
