Embracing the Future: The Next Transformation of the Telecoms Industry

The telecommunications industry is on the cusp of a significant transformation, with a shift towards a more efficient and customer-centric model. In this evolution, we witness the emergence of service approaches that will redefine the way carriers, operators and enterprises establish connections and communicate with each other. This shift is characterised by the adoption of a delayered or 'as a service' model that is set to distrupt the traditional operator structure.

Since the very real threat of network disintermediation from the new kids on the block, the traditional carrier sector has been exploring the ideal structure for B2B telecommunications and operations. This shift recognises the growing importance of adopting the new kids platforms into the business model to enhance value creation and competitiveness and avoid being left outside in the cold. The concept of delayering has become the preferred means to shift from isolated structures to more agile, customer-centric, and technologically savvy organisations.

By delayering, I mean the process of restructuring the silos of an organisational framework within telecom companies such as (fixed, wireless, voice, data, networks, satellites) into a layered approach that matches the customer service layers as opposed to the network architecture. Traditionally, telcos operated in isolated silos, each with its resources and capabilities for network, IT, and digital platforms. The delayered approach streamlines and extends these layers to provide unified capabilities across the organisation, resulting in a more cohesive and efficient operation.

The primary goal of this transformation is to simplify the telecommunications landscape for the customer, acknowledging the inherent complexity due to each business's unique evolution. This approach leverages expertise from global ecosystem partners to create a strategic roadmap for a seamless customer process, improving efficiency and enhancing market advantages, accountability, and transparency.

The traditional telco structure, typically centered around specific technologies or services, is evolving into a more intricate model. The removal of network silos presents a simplified structure consisting of three primary services layers:

  1. Content as a Service: This layer configures and provides customer service, facilitating billing and support activities. It is organised by customer segments and their products, covering everything from rate plans to cybersecurity solutions.

  2. Platform as a Service: This layer manages services and platforms, drawing on various resource domains. It allows services such as cybersecurity and advanced capabilities to be exposed within solutions.

  3. Network as a Service: This layer addresses immediate system outages, encompassing components like fibre, cell sites, and data centres, providing essential underlying connectivity or functions that cannot be separated.

This delayered approach not only enhances efficiency but also keeps pace with technological advancements. Emerging technologies like software-defined networking and open radio access networks have driven the virtualization and delayering of network technology stacks, realizing the full potential of the industry.

The telecoms landscape is undergoing rapid changes, characterised by increasing infrastructure fragmentation and a growing need for cloud infrastructure management. Adopting an ‘as a service’ model empowers telcos to more efficiently manage network, machine and cloud infrastructure, whether by leveraging hyperscalers' clouds, deploying their own cloud solutions, or a combination of both. These changes help operators stay at the forefront of the technology revolution without the risk of overexposure to infrastructure capital expenditures.

I believe that the future of the telecommunications industry remains bright, with this transformation enabling telcos to effectively compete with tech players. This shift promises greater agility, faster speed to market, and enhanced customer-centricity. Embracing this change is not an option for network operators but rather a necessity in this ever-evolving landscape.

Embracing the Future: The Next Transformation of the Telecoms Industry - Expect unfiltered ideas formed without corporate oversight or focus groups, so they are personal and proudly imperfect.