Telcos' path to digital transformation

Telcos must adopt horizontal architectures, moving beyond siloed network functions to offer competitive services and platforms beyond connectivity

- ARVIND KHURANA

The transformation of telecom operators (telcos) or communication service providers (CSPs) into Digital Service Providers has been underway for the better part of the last decade, though progress has been sluggish. During the last few years, telcos have made multiple attempts to modernise their networks and shift away from the architectures that featured vertical stacks and siloed network functions.

The urgency of these transformation efforts has been heightened by the hyperscaler community’s continuous progress in developing high-value network-related services on top of the telecom infrastructure. Hyperscalers benefit from their horizontally architected infrastructure, allowing them to address vertical industry use cases that demand scalable compute resources like Infrastructure-as-a-Service (IaaS) or Platform as a Service (PaaS). To remain competitive globally, telcos must adopt a similar strategy and evolve into Digital Service Providers or TechCos, offering services and platforms that extend beyond mere connectivity to enterprise customers.