According to a recent report by ICICI Securities, as digital transformation has gathered an unprecedented pace amid the pandemic, enterprise services have emerged as the new value engine for telecom services providers.
Further, it added that as corporates are adopting cloud solutions and traditional networks are not purpose-built for it, these new solutions, which run on internet wide area network (WAN), are challenging the conventional hub and spoke model. Further, services are also sold independent of network, which is challenging the conventional model.
However, this is also pushing telcos to re-innovate and broaden their service offerings by expanding into platform or software services. Market for traditional services (voice and data) are declining, but the larger markets are opening up to cloud and managed services, such as security, edge computing, unified communications, among others, added ICICI Securities.
