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Senior Manager, Telco Consulting
In today's fast-paced digital world, businesses must adapt quickly to survive and thrive. The shift from traditional infrastructure to a more agile, ecosystem-based model with digital platforms is not just a trend but a necessity. This transformation is particularly evident in the telecom industry, where telcos are transitioning from mere service providers to technology companies or "techcos." This narrative explores how building resilience through platforms and ecosystems can drive this shift, emphasizing the importance of agility, collaboration, and innovation.
Rigid, siloed systems have long characterized traditional infrastructure models in the telecom industry. These models were built to support specific functions and services, often leading to inefficiencies and a lack of flexibility. The focus was primarily on maintaining and upgrading physical infrastructure, such as networks and data centers, to ensure reliable service delivery. However, this approach has limitations, particularly in an era where customer expectations are rapidly evolving and groundbreaking technologies are emerging at an unprecedented pace.
Several factors drive the transition from traditional infrastructure to agile, ecosystem-based models. Firstly, the advent of 5G technology necessitates rethinking business and operating models. 5G is more than faster internet; it fundamentally shifts how telecommunications services are delivered and consumed. Telcos must adopt a platform-based approach for greater flexibility, scalability, and innovation to leverage 5G's potential. 5G supports diverse applications through ultra-reliable low-latency communications (uRLLC), enhanced-mobile-broadband (eMBB), and massive-IoT (m-IoT). uRLLC enables critical applications like remote surgery and autonomous driving, while eMBB supports high-bandwidth applications such as augmented reality (AR) and virtual reality (VR). M-IoT connects billions of devices, facilitating smart cities and industrial automation. Telcos can create flexible, scalable, and innovative solutions to meet diverse customer needs by adopting a platform-based approach.
Secondly, competition has grown fiercer. Traditional telcos are now competing with tech giants and digital-native companies that operate on agile, platform-based models. These companies can swiftly adapt to market changes, launch new services, and scale operations efficiently. To remain competitive, telcos must embrace similar models that enable them to innovate and respond more effectively to customer expectations.
Digital platforms form the backbone of modern transformation. They provide a foundation for creating, managing, and delivering diverse services and applications, empowering telecom companies to thrive in a competitive digital environment. With their scalability, flexibility, and innovative potential, platforms enable telcos to adapt quickly to changing market demands while reducing operational costs by leveraging cloud infrastructure, automating processes, and optimizing resources.
Telcos leveraging digital platforms can effortlessly scale operations, introduce new services, and respond to market dynamics without incurring hefty infrastructure expenses. These platforms foster rapid innovation, allowing companies to experiment with emerging technologies, launch cutting-edge services, and refine offerings through feedback. This agility is essential in navigating the demands of today's digital-first world. Additionally, platform-based models drive cost efficiency by utilizing cloud infrastructure, automating workflows, and maximizing resource utilization—freeing up resources for reinvestment in innovation and customer engagement.
Moreover, digital platforms revolutionize customer experiences. Integrating diverse services and touchpoints creates a seamless, personalized, and unified experience across all channels, fostering stronger customer loyalty and satisfaction.
While digital platforms provide the foundation for transformation, ecosystems enable resilience and innovation. An ecosystem-based model involves collaborating with technology providers, application developers, and other service providers, unlocking benefits like access to expertise and innovation, faster time to market, risk mitigation, and expanded market opportunities.
By partnering with other companies, telcos can leverage their partners' strengths to develop new services, enhance offerings, and stay competitive. Ecosystems enable faster new service launches, reduce development overheads, and help mitigate the risks of new ventures. Additionally, ecosystems help telcos expand their reach and tap into new opportunities by offering integrated solutions tailored to diverse customer needs.
Artificial Intelligence (AI) is crucial for the resilience of modern networks and IT systems. AI-powered platforms enhance operational efficiency, predict and mitigate issues, and deliver superior customer experiences. For example, AI analyses vast network data in real-time, identifying patterns and anomalies to prevent failures through predictive maintenance.
AI also improves network performance by dynamically allocating resources, reducing latency, and improving efficiency. In cybersecurity, AI identifies and responds to threats faster and more accurately than traditional methods, safeguarding critical infrastructure from evolving risks. By integrating AI into their operations, telcos can build resilient, adaptive, and secure networks that are better equipped to handle the challenges of the digital era.
The transformation from a traditional telco to a tech-co exemplifies resilience through platforms and ecosystems. This shift involves rethinking business models, organizational structures, and technology strategies. Telcos are redefining their business models to focus on platform-based services, offering digital solutions like cloud computing, analytics, and IoT. This approach creates new revenue streams and enhances value propositions. This shift also demands organizational change, requiring a culture of innovation, agility, and customer-centricity, supported by upskilling employees, fostering collaboration, and embracing modern workflows.
Advanced technologies like AI, automation, and cloud computing enable scalable, flexible, and efficient platforms that support diverse services and innovative solutions. Strategic partnerships with technology providers and application developers further accelerate innovation, enabling telcos to deliver integrated, high-value solutions that meet evolving customer expectations.
PILOT industries like healthcare, automotive, engineering, manufacturing, and smart cities benefit from integrating cloud and analytics, further amplified by leveraging 5G. In healthcare, cloud and analytics improve patient care and operational efficiency through real-time data sharing. The automotive industry enhances connectivity and autonomous driving with cloud and analytics. Engineering and manufacturing use cloud and analytics for smart factory initiatives, optimizing production and supply chains. Meanwhile, smart cities deploy these tools for smart grids, traffic management, and public safety, gaining insights into urban mobility, energy consumption, and environmental conditions, transforming operations, and boosting citizen satisfaction.
Telcos are investing in developing their own OSS/BSS stacks to offer cloud-native SaaS solutions to Mobile Virtual Network Operators (MVNOs) and Mobile Virtual Network Enablers (MVNEs). This approach provides cost efficiency, scalability, flexibility, speed to market, and innovation. Cloud-native SaaS solutions reduce upfront investments, allowing MVNOs and MVNEs to scale operations quickly and adapt to market changes. They enable quicker service launches with pre-built, customizable solutions, accelerating time to market. By leveraging these solutions, MVNOs and MVNEs can focus on innovation and differentiation, creating unique service offerings and customer experiences using the cloud platform's capabilities.
The shift to platforms and ecosystems is not without its challenges, but the rewards far outweigh the effort. By embracing this change, telcos can innovate faster, enhance superior customer experiences, and unlock new revenue streams. The transformation from a traditional telco to a tech-co isn't just a necessity; it's an opportunity to build a resilient, future-ready business that thrives in the complexities of the digital age. Resilience isn't about avoiding challenges—it's about adapting to them. With platforms and ecosystems at their core, telcos are well-positioned to lead the way into a new era of innovation, growth, and success.
Senior Manager, Telco Consulting
Harshal Naik, Senior Consulting Manager and Telco Domain Consulting Lead at Virtusa, specializes in Telco OSS/BSS solution design, end-to-end program ownership, network technologies, operational transformation, and emerging technologies. His expertise lies in designing solutions for global telecom programs and identifying growth opportunities within and beyond delivery accounts.
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