The telecommunications industry is undergoing significant changes. As digital adoption accelerates at an unprecedented rate, communication service providers (CSPs) are facing a crucial decision point. They must balance the potential for limitless opportunities with the challenges they face. Legacy systems, market saturation, and higher CAPEX have compelled CSPs to rethink their operating models. Success in this era requires more than just keeping up; it demands radical reinvention, where we must partner to deliver solutions, not technologies. Read on to take a sneak peek into this CEO playbook and how it could reignite growth for telcos with the transformative pillars of simplify, modernize, and monetize.
Understanding the Market Shifts
CSPs are working tirelessly to enhance customer experiences, amplify their digital strategies, and embrace advanced automation and security measures. However, these rapid advancements also bring new competitors such as cloud providers, OTT platforms, and infrastructure powerhouses. Additionally, the capital-intensive nature of areas like 5G rollout and fiber expansion further complicates matters.
Amidst these changes, the question arises: how can CSPs stay ahead and harness the potential of the digital boom? The answer lies in a definitive CEO playbook that focuses on three pivotal axes: simplify, modernize, and monetize.
The Playbook Unfolded
1.Simplify: Before innovation can take place, simplification is necessary. The industry is often burdened by legacy systems and complex operational structures. Unlocking capital becomes the first priority. Simplifying processes and streamlining operations not only frees up investments but also enables agile decision-making and faster time-to-market.
2.Modernize: With the capital and resources generated from simplification, the next step is modernization. It involves more than just integrating the latest technology; it requires evolving the core of the business. CSPs must transition from a traditional telco to a techco – from mere communication facilitators to technology innovators. This includes embracing cloud infrastructures, implementing AI-driven processes, and digitizing both B2B and consumer-facing aspects of their operations.
3.Monetize: The culmination of simplification and modernization is the creation of robust monetization avenues. By capitalizing on their revamped operations and the power of their networks, CSPs can tap into previously untapped revenue streams. This sets the stage for sustainable profitability in an ever-evolving market.
Pivoting with Precision
A transition driven by a strategic approach affects various levels and hence would demand fundamental changes.
- People: Cultivating a mindset that values innovation and agility is crucial. To keep up with the transition into an agile digital enterprise, teams would need to inculcate appropriate skills.
- Process: Enabling flexible and co-creation-driven workflows that also support cross-functional collaborations is a prerequisite for business processes to meet market demands.
- Technology: Technologies leveraged must contribute to real-world business outcomes. Modular and cloud-native platforms fostering internal research and development are the way forward.
The Journey from Telco to Techco
The “telco” to “techco” journey is quite challenging for CSPs. However, a comprehensive playbook that talks about simplifying complexities, modernizing legacy infrastructure and practices, and cultivating new monetization streams, could empower telcos to lead in the digital era. The scope of growth is immense, inviting us to take a leap forward by evolving ourselves and redefining the future.
About the Author
Manish Vyas,
President, Communications, Media and Entertainment Business, and CEO, Network Services
Manish Vyas is President of Tech Mahindra’s largest industry vertical, Communications, Media, and Entertainment. He is also Chief Executive of Network Services Business, one of Tech Mahindra’s the leading growth pillars.
An accomplished leader with extensive expertise and experience across global markets, Manish has led large and diverse global programs during his 20 years at Tech Mahindra. Manish was brought up in Nagpur in Central India and is currently based out of Dallas, USA with his family. Manish completed his master’s degree in business administration (Marketing) from NMIMS, Mumbai, and Electronics Engineering from Nagpur University.
