Historically focused on consumers, telecom providers are now targeting large-scale enterprise customers


Let’s start with a simple question: Are you paying more today than in previous years for your home internet service? The speed, efficiency and overall capabilities have certainly evolved, but providers have not significantly raised their prices. According to the 2021 Broadband Pricing Index Report from USTelecom, the price of the most popular broadband service actually declined by 7.5% from 2020 to 2021, while the cost of overall goods and services increased by 1.9% in the same timeframe.

Historically, telecom providers were laser focused on consumers and growing revenue through residential services. It’s a massive market to reach and having residential internet connectivity has never been more prioritized than it is today given the substantial growth in the number of work from home roles. Competition is fierce between the major players in each region, offering massive perks and add-ons to keep customers. Yet, certain geographies offer consumers limited options: Sometimes as few as one provider can serve someone where they live.

Instead, the telecom industry is undergoing a major mindset transformation. For the past decade, organizations have been focusing on migrating into the B2B space to expand their footprint. 10 years ago, industries weren’t thinking about partnering with telecom companies and enhancing their digital connectivity, but today, it’s a crucial piece of their business strategy and operations — and for telecom companies looking to secure market share, it’s the wild west.

This golden opportunity is just starting to be explored. Here are four reasons why we should expect this trend to expand in the coming years:

Innovation that scales across industries

Huge investments have already been made in areas like 5G, but we’re just scratching the surface of its full potential. If a manufacturing company’s factory can use real-time, low-latency video to operate machinery remotely, an energy company’s power plant can do the same to replace tasks that were previously dangerous for employees to do on-site. If cars become connected hot spots for navigation, streaming and communication, other modes of commercial transportation like trains and trucks can leverage similar capabilities for real-time connectivity within smart cities and route optimization. With the ability to scale innovation across industries, telecom providers can more seamlessly expand their footprint in the B2B space.

Telecom “as a service”

Effectively tapping into the enormous B2B market opportunity will take a new form of positioning. Rather than competing for a specific consumer’s home internet or mobile phone plan, we’re now seeing the top telecom companies selling to large enterprises. Nearly all industries — including healthcare, automotive and education — are seeking greater speed and efficiency through connectivity. Many are leveraging cloud, Internet of Things (IoT), edge computing and other advanced technologies to enhance their data insights and visibility. The future of telecom in this B2B-focused world may result in telco “as a service” solutions marketed to industries hoping to partner with a provider that can take them to the next level.

Greater reach through platforms and bundles

With innovation that scales across industries, and new positioning to market telecom services to the enterprise, a third reason this trend may accelerate is the opportunity to reach more customers through a platform’s product bundles. For example: if a telecom company partners with a car manufacturer, consumers who purchase these vehicles may gain greater compatibility when their personal phone or internet plans are also with the same provider. If a hospital system partners with a telecom company for its connectivity services, it may also want its ambulance and emergency vehicles to come from an automotive company that uses the same provider. In scenarios like these, the market reach could be significant.

Connectivity relevancy

One of the big transformations in front of telecom providers is “connectivity relevancy.” For example, most luxury cars come with prebuilt connectivity infrastructure — where the cars can get smarter over time. As we move forward, devices that are not mobile like our refrigerators and washing machines will continue to use Wi-Fi for connectivity, but products that are mobile could see a trend where the manufacturer pays for the connectivity cost so their products can come with a connectivity-on-the-go offering. The industries with mobile components will continue to prioritize connective capabilities for this reason.

It’s a relatively new concept for enterprises to prioritize digital connectivity to conduct business operations, but the pandemic proved it’s now the backbone for smooth, resilient and efficient execution. While the residential market still provides substantial value to the telecom industry, the emerging needs for organizations across industries make the B2B focus a trend that’s here to stay.

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