Telcos to Techcos: The long climb to a new success story

As operators climb out of the commodity-connectivity trap, they are rebuilding networks, services, and platforms to script a sustainable growth story.

- BY ADITYA KHAITAN

The telecom industry has, in recent years, been defined by slowing subscriber growth, declining Average Revenue Per User (ARPU), intensifying competition, and shrinking margins.

Market saturation and the limited ability to generate fresh revenue from traditional connectivity offerings have placed telecommunication companies at a disadvantage, even as they continue to invest heavily in nationwide and global infrastructure.

Meanwhile, technology companies—ranging from hyperscalers and over-the-top providers to artificial intelligence specialists and digital-first platforms—have captured the bulk of new value creation. They have done so through software, data-centric services, and scalable platforms. In contrast, many telcos have found themselves reduced to the role of connectivity utilities, essential but increasingly marginal in the broader digital economy.

As basic connectivity becomes commoditised and demand for digital solutions accelerates, telecom service providers worldwide are reimagining themselves as diversified technology companies. This shift has become a defining global trend, with virtually every major operator pursuing a transition to techco models to secure sustainable long-term growth. Industry estimates suggest that nearly 90 per cent of operators are now investing heavily in capabilities such as artificial intelligence, cloud, edge computing, 5G/6G evolution, and big data analytics to become more agile, customer-centric, and platform-driven—much like the technology giants that currently dominate digital value chains.

FOUNDATIONS OF THE TELCO TRANSFORMATION