B2B customers want more from telecom operators
Industry expected to play bigger role beyond core connectivity.
There are growing expectations among B2B customers in terms of what telecom operators should be offering as part of an expanded mandate. A global study by McKinsey & Company found that telcos face substantial growth opportunities in domains outside their traditional scope, including cloud-enabled services and cybersecurity.
"We surveyed more than 3,000 B2B decision-makers from enterprises of all sizes, and nearly 80% of these customers surveyed indicated they believe telecom operators should play a larger role beyond core connectivity," stated McKinsey. "This demand is especially strong among small businesses, with 36% wanting operators to become full-service providers for technology and telecom solutions.
"While large enterprises prefer operators with specialised expertise that can accommodate complex needs and existing vendor relationships, smaller and mid-sized businesses seek simplicity, integration, and comprehensive support."
According to McKinsey, businesses are actively looking for technology and telecommunications partners that can assist in navigating what continues to become a more complex and digital environment.
"For telecom operators, this means there is both demand and expectation to expand their role," McKinsey said. "However, capturing this opportunity requires moving beyond traditional offerings and delivering a broader, more integrated value proposition."
The Global Technology and Telecommunications B2B Pulse Survey featured the following options regarding the expected role of telcos in the future: core connectivity focused, core and selected domains, and TMT (technology, media, and telecommunications) one-stop shop.
The biggest percentage for TMT one-stop shop came from Spain, where 53% of respondents believe this is the way forward for telecom operators. Only 9% picked the traditional route of being focused on core connectivity.
In Japan, 32% of respondents went for core; 38%, core and selected; and the rest, one-stop shop. In India, 46% chose core and selected; 32%, core; and 22%, one-stop shop. In South Korea, only 17% think core is the way to go; 19%, one-stop shop; and the majority, core and selected.
"Even with some geographical differences, B2B decision-makers clearly want operators to play a broader role in the industry," McKinsey reported. "The regional variances that our survey found are largely explained by proven successes that have already occurred in markets where telcos have successfully branched out into domains beyond connectivity.
"In those countries, where telecom providers have begun moving into adjacent technology domains such as cybersecurity, cloud, or IT services, customer expectations have followed suit."
McKinsey added: "While no one-size-fits-all model exists for telcos, what is evident is that B2B customers expect much more from them. They no longer view operators merely as resellers or infrastructure providers. Instead, they increasingly see telcos as uniquely positioned to serve as integration partners and end-to-end solution providers."
For the expectations to be met, McKinsey said telecom operators should be ready to make "bold, decisive moves" that are backed by a combination of a long-term strategic vision and a differentiated value proposition.
