CEO Breakfast MWC 2024 – Growth and the Future Role of AI

4 key components of the telecom transformation

The telecom industry is experiencing rapid transformation driven by technological advancements, changing customer expectations, and competition from those outside of their traditional ecosystem. To unlock its full growth potential, industry leaders must embrace four key areas: collaboration, capability, new business models and the pivotal role of the CEO.

Collaboration

To overcome industry challenges and leverage the scale of data, telecom operators must prioritize collaboration amongst themselves. By sharing insights and communicating openly, operators can solve shared issues collectively. Collaboration allows for the pooling of resources and expertise, ultimately benefiting the entire industry.

Capability

To foster innovation and growth, telecom operators should be willing to hire talent from outside the industry and empower them with fresh perspectives. By tapping into the wider ecosystem and embracing a more diverse range of skillsets, operators can leverage best practices, and inject new ideas into their organizations. Embracing diversity in talent brings a wealth of knowledge and accelerates growth.

New Business Models

The telecom industry can learn valuable lessons from other industries that have successfully transformed their business models. CEOs should encourage openness towards adopting new business models and be willing to experiment. Creating an environment that encourages innovation and risk-taking is crucial for driving growth and staying ahead of the competition.

The Role of the CEO

CEOs play a pivotal role in driving the culture shift towards openness and collaboration. Intra-industry collaboration starts with alignment between CEOs, who should communicate the rationale, benefits, and parameters for collaboration as part of the strategic vision. CEOs must also provide dedicated sponsorship and create a platform for non-industry talent to thrive. Additionally, CEOs should create an agile and dynamic environment that allows for experimentation with new business models.

What else is crucial for success in the telecom industry?

Creating the Right Data Foundation

Adopting AI, aligning products to customer demand, and evolving the network require a robust data foundation. Telecom operators must invest in data management systems to unlock the full potential of their data assets.

Leveraging Scale

The telecom industry possesses a vast customer/user base and a wealth of data. Operators should leverage this scale to gain valuable insights and drive innovation in areas such as personalized advertising and customer care.

AI's Impact

AI has the potential to transform the industry. Telecom operators can optimize their operations, improve the user experience, and drive cost optimization through AI-powered solutions. By embracing AI, operators can accelerate software development and enhance targeted proposition advertising.

'Local' as an Advantage

There is notable opportunity in the B2B segment, but historically this has focused on Enterprise. Telco has a differentiated advantage in local markets relative to ‘global tech’, and the SMB market is currently underserved by global tech players. Particularly with SMB customers that are domestic / have a focused geo-footprint, telco operators have an opportunity to become the primary tech transformation partner to these businesses, beyond connectivity provision, by effectively leveraging their own knowledge and powerful partner ecosystem.