Future Trends in Telecom Business Models

Is the MVNO business becoming more attractive? I am seeing a general trend where MVNOs are no longer just low-cost resellers—they’re becoming innovation hubs and value enablers. Here's a snapshot of some interesting things I am witnessing: 1️⃣ Hyper-Niche Market Strategies MVNOs are carving out success by going hyper-niche—serving specific communities, such as expatriates, gamers, seniors, or environmentally conscious users—with tailored plans, languages, and brand messaging. 🎯 Over 65% of new MVNO entrants in the last 2 years have targeted niche segments (Analysys Mason). Relevance beats reach. 2️⃣ eSIM & Digital-First Experiences With eSIM adoption on the rise, MVNOs are moving away from physical SIMs and enabling instant onboarding through apps. This is transforming how users activate and manage mobile plans—no (or less) stores, less delays. 3️⃣ Platform-as-a-Service (PaaS) MVNOs 🧱Some MVNOs are shifting from being consumer-focused brands to becoming enablers—offering their tech stacks to help others launch telecom services, fast and cost-effectively. This enables rapid go-to-market for new digital brands, fintechs, and IoT ventures embedding mobile into their offerings. 4️⃣ Other target opportunities 🏭 Think B2B opportunities, private 5G networks for enterprises, and IoT connectivity as differentiators in a saturated market. 🚀 The result? A more agile, diversified, and digitally-native MVNO sector. 👥 Curious to hear from others in the space—what trends are you watching?  Stephanie Ormston Elizabeth Hunter Adil Belihomji Ken Willner image source: telecoms dot com #5g #telecom #MVNO #networks #telcos #eSIM #MobileIndustry #VPspeak [^530]

The telecom industry has long been the backbone of digital transformation, powering connectivity, cloud, and AI. Deloitte’s 2025 Global Telecom Outlook (https://deloi.tt/3XjhBGy) highlights three major bets telecom organizations are making this year:     📈 Gen AI: With estimated spend of up to a trillion dollars on AI infrastructure over the next five years, there’s a clear opportunity for telecoms. Some are building Gen AI data centers to sell training and inference services, while others are focused on AI-powered network optimization.    📡 6G: 5G monetization has been slower than expected, and telcos don’t want 6G to follow the same path. They’re advocating for a model prioritizing profitability rather than speed upgrades with unclear ROI. A major shift could be embracing networks that already carry most consumer wireless traffic, like terrestrial, satellite, and Wi-Fi.    🤝 M&A and Private Equity: Telecom M&A is evolving, with private equity playing a bigger role—accounting for over 80% of telecom deal activity in 2024. In the second half of last year alone, deal value soared to $11B, fueled by strategic divestments and infrastructure investments.     The telecom industry has always adapted to shifts in technology and consumer behavior. The key now is turning connectivity into opportunity.    Such an insightful and optimistic outlook, Doug Van Dyke, Dan Littmann, Jack Fritz, Duncan Stewart, and Dr. Prashant Raman! 

How can #telco leaders adapt their business models for the #future? 💡 One idea: Enhancing Managed Services. This model could manifest in a range of innovative value propositions. On the #B2B side, telcos are already offering solutions like Network as a Service (#NaaS), but a new trend is emerging where partners and suppliers fully own networking and provide fully managed NaaS solutions. We’re seeing this happen in multiple areas related to private #5G enterprise networks in #healthcare and #industrialmanufacturing settings. For #B2C, telcos can adapt some of their B2B services to deliver similarly effective customer solutions. For example, they can bundle managed cybersecurity features into their consumer packages, offer #IoT packages where a certain number of devices are connected and monitored, and take a bigger role in hosting the processes that underpin the smart home. 🔑 The key to success in the managed services play will be the organization’s ability to deliver innovative products and services on a digitally-enabled technology architecture that enables seamless interactions and commerce. Continue reading for 3 more ways for telcos to transform their business: https://lnkd.in/eupp65xn #KPMGManagedServices #KPMGTMT #KPMGConnectedEnterprise #telecommunications #managedservices #FutureofTelco #digitaltransformation

Telecom giants like AT&T, SK Telecom, Vodafone, and Bell Canada are already launching GenAI trials. These trials mark a pivotal shift in the industry, with companies betting big on the synergy between solid data foundations and effective AI strategies. For instance, Bell Canada is leveraging predictive AI to foresee environmental events like snowstorms, enhancing workforce readiness and preempting network outages. Such proactive measures not only improve service reliability but also streamline operational efficiency, ultimately benefiting both businesses and consumers. One estimate is that by January 2025, 60 percent of executives will be testing out genAI solutions. What's noteworthy is the rapid deployment capability of genAI pilots, which can go from concept to implementation in just a few weeks! 🚀 The telecommunications industry grapples with outdated practices and processes, but genAI is ushering in a new era of profitability. By enhancing customer revenue through improved lifecycle management and cutting operating costs, genAI can boost incremental margins by three to four percentage points in two years and even up to eight to ten percentage points in five years. 💼💡 As telecom leaders embrace GenAI, they must also address critical questions surrounding data accessibility, technical infrastructure, ethics, and sustainability. By fostering a robust GenAI environment and staying vigilant about ethical implications, telecom companies can position themselves at the forefront of innovation while ensuring responsible and sustainable growth. #AI #Innovation #GenAI