‘From Telco to a Techco': Enterprise business to catapult telecom industry to next level

‘From Telco to a Techco’: Enterprise business to catapult telecom industry to next level
From a ‘telco’ to a ‘techco’ – that’s what the future of the telecom industry looks like.
The next level Industry 4.0 is around the corner with Covid accelerating the whole process of digital transformation of enterprises alike – be it small or large. And telecom players are not letting this golden opportunity slip away. There is a renewed focus on enterprise business which has a huge potential to generate additional and significant revenues for telecom players.
With the launch of 5G including artificial intelligence, machine learning, internet of devices, the digital transformation will be much faster. Being an enabler of connectivity already, which has become critical in a post Covid scenario, telcos are looking to provide customised and innovative solutions to enterprises with an aim to offer full fledged tech and telecom solutions on a platform. Telcos are trying to go beyond their core connectivity offerings, they are trying to become a technology player compared with just a telco player.
Currently, around 10-14% of revenues of telecom players come from enterprise business and this will grow to 20-25 % in coming years, according to experts.
“In the near future, you might equate the telcos with every company..they are building software, they are building products, they are building enterprise products. Telcos are becoming like a product engineering company trying to build products like a technology company, so you might see a completely different landscape of telcos in the next three years,” Purushothaman KG, Partner and Telecom Sector Leader, KPMG in India, said.
With substantial cash flows in hand post the relief package announced by the government, telcos can now invest further in the networks, building products and offering new services. Business to business (B2B), though currently generates lesser revenues than business to consumers (B2C), but the margins are pretty high which is one of the reasons for telcos to diversify into new segments. B2C is capital intensive but profitability is low because of stiff competition.
Enterprise opportunity & 5G
Tata Communications is already a formidable player in the enterprise segment while telcos including Airtel, Vodafone Idea, Reliance Jio have been slowly and steadily upping their ante. Every telecom player has a separate business unit to tap the enterprise segment. Tata Tele Business Services (earlier Tata Tele Services) also caters to enterprise customers.
Large variety of use cases will evolve by leveraging 5G connectivity, emerging technologies and engaging multiple skill sets that reveals a potential global market of $300 billion with an average CAGR of 25 % per sector, as per a report from KPMG – ‘The Connected Enterprise – A world of possibilities’.
First some background. Corporates are adopting cloud solutions as traditional networks are not purpose-built for it. The new solutions, which run on internet WAN, are challenging the conventional hub and spoke model. Services are being sold independent of the network, which is challenging the conventional model and pushing telcos to re-innovate and broaden their service offerings by expanding into platform/software services. The market for traditional services (voice and data) are declining, but the larger markets are opening up to cloud and managed services, such as security, edge computing, unified communications etc.
Experts say enterprise services portfolio will increase by many bounds, once 5G kicks in.
Enterprise use cases will drive 5G revenues for Indian telecom operators initially but retail use cases will pick up with mass adoption of 5G smartphones in the country. “But initially, a major share of the revenue from 5G will be contributed by enterprises rather than consumers. The trend is likely to change in the future considering the efforts by smartphone makers to increase mass adoption of 5G devices,” Peeyush Vaish, Partner & Telecom Sector Leader, Deloitte India, said.
Cloud products have already been launched sufficiently and now there are SME (small and medium enterprises) and SMB (small and medium business)pProducts. There are multiple products that have been worked up by telcos along with startups who are collaborating with telcos experts to white label their solution.
“Enterprise products have actually grown over a period of time and will continue to register good numbers. The telecom business has gradually moved away from just being a connectivity to a host of other value added services that goes with connectivity which includes the security, Internet of Things etc. Many of the telcos have actually started offering multiple end to end services,” Purushothaman said.
Post Covid, the MSME’s (micro, small and medium enterprises) have become a huge opportunity to tap. There are around 50 million MSME’s in the market. Jio’s enterprise arm JioBusiness recently launched new tariff plans offering integrated services for MSME. Airtel and Vodafone Idea have been constantly launching new IoT solutions, cloud and services for enterprise customers.
It is estimated that the current turnover of this segment (only for telecom and tech players) would be around Rs 25,000 crore for India itself. This doesn’t include global firms which offer solutions only in this space, another expert adds.
Airtel CTO Randeep Sekhon had previously told ETTelecom, “…enterprise customers can have private networks and can also have edge to support their secure enterprise 4.0 use cases…there will be common threads of automation, there will be common threads of cloud and there will be common threads of 5G use cases of lower latencies and higher speeds and mass contingencies”.
Airtel Business, the B2B arm of Bharti Airtel is the most profitable business for the telecom major given that it contributed 14% to the consolidated revenue and 12% to the EBITDA in FY21, according to a report by ICICI Securities. Airtel Business derives 80% revenue from 20% customers, and sees “huge potential in farming and hunting”.
5G technology will open new revenue streams for telecom players in enterprise digitisation and IoT economy. “This transformation (shift to 5G) will take India to the next leap of growth in the economy. This network transformation will give birth to new businesses and new business models where telcos will no longer be just a pipe to ride on, but a digital marketplace with better opportunities to monetize the assets,” Sanjay Bakaya, Country Head- India & Regional Vice President- India & South Asia, Mavenir, recently said.
4G has shown the potential of what connected solutions can offer. 5G will bring in large scale disruption in the way business activities can be carried out, it will be transformative and has potential to harness the true value of industry 4.0. Through network slicing and private 5G networks, enterprises can enable customization that will allow them a robust network to deploy different use cases securely.
Telecom players have realised that their survival is bleak if they remain only a connectivity provider as technology companies will completely overtake this space forcing telcos to diversify to this space.

Internet Explorer Channel Network
News Related


Brain ‘Fingerprints' Could Unlock Alzheimer's Early Warning System

Photo Illustration by The Daily Beast / Photos Getty Every human brain is made up of seemingly countless connections that come together as a type of biological map of the ... Read more »

iPhone 13 vs iPhone 13 Pro: Is this the year to go Pro?

The iPhone 13 and the iPhone 13 Pro are out now, which means that Apple’s smartphone vision has been established for the next year. So what are we dealing with ... Read more »

The HTC Vive Flow is a $499 VR headset that doesn't need a PC

© Provided by Space HTC Vive Flow is the $499 VR headset that doesn’t need a PC HTC has finally revealed its next step in the world of VR, with ... Read more »

Google Chat is getting an important security upgrade

Preventing data leaks is of the utmost importance to businesses which is why Google is launching a new beta to add data loss prevention (DLP) to Google Chat. The search ... Read more »

Qualcomm is salty about Pixel's switch to Tensor but really shouldn't be

© Image: Google The Google Pixel 6 phones will ditch Snapdragon chips for an in-house design, and Qualcomm is clearly feeling a little hurt about it. Qualcomm couldn’t help but ... Read more »

Apple AirTag Vs Tile: we pit the two key trackers head to head

Losing items, whether it’s your wallet, bag, keys, or the TV remote, is frustrating, time consuming… and no longer necessary. According to motoring organization the RAC, 43% of drivers regularly ... Read more »

You can delete Facebook and still keep some of your memories. Here's how.

Michael Humphrey is an assistant professor of Journalism and Media Communication at Colorado State University. This story originally featured on The Conversation. © everstruslan/Deposit Photos You have three options: delete ... Read more »

After the dinosaurs, Earth became an all-you-can-eat buffet for snakes

When it comes to snakes, the modern world offers an embarrassment of riches. There are almost 4,000 different snake species alive today, placing the group not far behind mammals in ... Read more »

Dell discounts XPS 13 with Windows 10, debunks Windows 11 tax theories

© Windows Central Dell XPS 13 You could save some cash by ordering an older Dell laptop with Windows 10. What you need to know A recent report sparked speculation ... Read more »

Lectrofan Classic

© Provided by TechRadar Lectrofan Classic One-minute review It might not look like much, but the modestly designed Lectrofan Classic has the ability to drown out even the loudest of ... Read more »

Mobile app helps people manage their blood pressure

© Hello Heart People with high blood pressure who used a smartphone app and at-home monitor were able to drive down their blood pressure, a new study showed. The program, ... Read more »

ZmBIZI's $550 Z2 phone pays you for your data usage

The ZmBIZI Z2 is a the $550 4G phone that pays you for the personal data you share on your phone. We live so much of our lives on our ... Read more »

Apple's child sexual abuse detection tech ‘would make us all less safe and secure', security experts warn

Technology proposed by Apple to sweep iPhones for child sexual abuse images would prevent neither crimes nor intrusive surveillance, security experts have warned. © Provided by The i Apple’s proposed ... Read more »

How to use iOS 15's new Focus modes

© Image: Apple These days, it is way too easy to be pulled from your work by notifications and other distractions. In order to help you keep your attention where ... Read more »

The myth of generations, debunked

© Sai deSilva/Unsplash Generational divides and conflicts between Gen Z, millennials, and boomers only hold society back. This story originally appeared in the Youth issue of Popular Science. Current subscribers ... Read more »

Vergecast: HTC's new VR headset, and what to expect at next week's tech events

© Photo by Amelia Holowaty Krales / The Verge Every Friday, The Verge publishes our flagship podcast, The Vergecast, where co-hosts Nilay Patel and Dieter Bohn discuss the week in ... Read more »

This 3D printed rocket is heading into space in 2022

© Courtesy of Relativity Space Relativity Space has developed a 3D printing system for its future Terran 1 and Terran R rockets. In a major first, American startup Relativity Space ... Read more »

Telescopes for sale: The best prices on Newtonians, Dobsonians and more

© Provided by Space Telescopes for sale: Image shows man next to telescope looking at moon Hunting down telescopes for sale is one of the best ways to save money ... Read more »

The M1 Mac Mini has dropped to its lowest price ever at Amazon

© Provided by The Verge Amazon’s $150 discount on the 512GB Mac Mini brings the 2020 desktop down to its lowest price to date. The Mac Mini is already Apple’s ... Read more »

Katarina Johnson-Thompson parts ways with coach Bertrand Valcin

© Provided by Daily Mail MailOnline logo Katarina Johnson-Thompson is looking for a new coach after parting with the Frenchman who helped transform her career. Bertrand Valcin has overseen Johnson-Thompson’s astonishing ... Read more »

Get connecting with the Windows 11 Chat app

© Provided by Windows Central Windows 11 has a new Chat experience, and in this guide, we’ll show you how to get started. Windows 11 also comes with Chat, a ... Read more »

Operations suspended at lab after false negative PCR tests

Operations have been suspended at a Wolverhampton laboratory as NHS Test and Trace investigates reports of people receiving negative PCR results despite testing positive on a lateral flow. Read more »

Microsoft Edge Dev gains Share support on Windows 7

© Windows Central Microsoft Edge Update Dev New2 Surprisingly, the latest update to Edge Dev adds a feature for Windows 7. What you need to know Microsoft Edge Dev has ... Read more »

Self-driving cars plague San Francisco street

© Getty Images Waymo is trying out self-driving cars with a human “safety driver” on board Residents in a “dead-end” street in San Francisco say they are being plagued by ... Read more »

Sir David Amess asks Boris Johnson to help reduce 'senseless' knife crime murders at PMQs

The Tory veteran, 69, who has died after being repeatedly stabbed at a constituents‘ meeting, asked the Prime Minister to commit to reducing knife crime on March 3 this year, ... Read more »

UK public warms to road pricing as fuel duty replacement considered

Road pricing is seen as a fairer possible system to raise revenue than fuel duty and motoring taxes, thinktank research has found. The switch to electric cars means almost £30bn ... Read more »

And the winners are.... Here are my picks for 2021's best tablets

We may receive commission from purchases made via links on this page. Pricing and availability are subject to change. Tablets come in all shapes and sizes. Wait, the shapes are ... Read more »

Sussex police arrest man on suspicion of impersonating officer so he could kidnap girl

A man has been arrested in Sussex on suspicion of impersonating a police officer so he could kidnap a 14-year-old girl on her way to school. Read more »

Tana Ramsay pens moving tribute to son on what would've been his fifth birthday

Tana and Gordon Ramsay have five children. (PA) Tana Ramsay has penned a moving tribute to the baby boy she miscarried five years ago. The 47-year-old lost her son Rocky ... Read more »

Breastfeeding is tough: new research shows how to make it more manageable

Jacob Lund/Shutterstock The benefits of breastfeeding are wide-ranging and life-changing. Breast milk contains antibodies that reduce the risk of asthma, allergies, diarrhoea and ear infections. Breastfed infants are hospitalised less ... Read more »

Kenya child killer beaten to death by mob after jail escape

Kenya Killed by Mob (Copyright 2021 The Associated Press. All rights reserved.) Police in Kenya say a man who had confessed to killing a dozen children and escaped from detention ... Read more »

NASA's Lucy probe will visit 8 asteroids in 12 years. Here's how it will work.

© Provided by Space An artist’s depiction (not to scale) of the Trojan asteroids clumped ahead of and behind Jupiter. Squeezing flybys of eight asteroids, most in a completely unexplored ... Read more »

Prince William has ‘wrong idea about space travel', says William Shatner

William Shatner raises his hand after returning to Earth on billionaire Jeff Bezos‘s second suborbital tourism flight – LM Otero The Duke of Cambridge is a “lovely, gentle, educated man” ... Read more »

Helpline inundated by thousands 'terrified of losing their homes'

Krystalrose, 27, and her young daughter were evicted from their privately rented one-bed flat in London (Shelter) A helpline that provides support to people at risk of losing their homes ... Read more »

China launches latest crew of three en route to nation's Tianhe space station

China successfully launched a new crew of three taikonauts into orbit this afternoon, sending them en route to the country’s primary space station, dubbed Tianhe. The crew will meet up ... Read more »

Șir David Amess: Boris Johnson pays tribute to ‘kind and gentle' Tory MP stabbed to death in church

Sir David Amess has died after being stabbed while meeting constituents in Essex. (Getty) The Conservative MP Sir David Amess has died after being stabbed at a constituency surgery, Essex ... Read more »

Some of the Loose Women went to visit Stacey and baby Rose and the photo is so sweet

Photo credit: David M. Benett – Getty Images Nadia Sawalha and Jane Moore paid Loose Women co-star Stacey Solomon a visit this week, to meet new arrival, baby Rose, and ... Read more »

Microsoft Teams update will help you tune out all distractions

A constant barrage of incoming notifications can be distracting while trying to work which is why Microsoft plans to roll out a new update for Microsoft Teams later this year ... Read more »