As competition intensifies, companies are accelerating their digital transformation, especially in the telecom sector. Telcos are evolving rapidly, moving from traditional connectivity providers to digital enablers.
Gone are the days of limited service offerings. Today, the focus is on delivering inclusive, wide-ranging services tailored to both business-to-consumer (B2C) and business-to-business (B2B) customers.
According to Circles, a global technology company reimagining the telecom space with its innovative software-as-a-service (SaaS) platform, a successful telco-to-techco journey begins by understanding “where you are, where you need to go, and what you need to get there.”
As defined by KPMG, a techco is a telco that has broken free from its legacy roots and embraced the digital landscape and beyond by focusing on multiple core pillars.
Reflecting on emerging technologies in the industry, Sanjay Kaul, Chief Revenue Officer of Circles Group and CEO of Circles Aspire, stated, “This is the opportunity of a lifetime for telcos to reinvent themselves.”
What’s Driving Telco Digital Innovation?
Amidst industry-wide transformation, telcos are navigating shifting consumer expectations, declining legacy revenues, and the imperative to lead in next-generation digital and enterprise solutions.
- Rise of Digital-Native Consumers: Gen Ds
Telecom consumers are becoming more digital-driven, with a significant majority—around 70% to 80%—comprising of Gen Z, Gen Alpha, and the broader segment, known as Gen D.
These consumers expect intuitive mobile apps, hyper-personalization, and full control over their service packages. To retain them, telcos must offer exciting, empowering digital experiences.
Revenue from voice and SMS has plateaued as markets become saturated. Even advanced infrastructure investments, such as 5G, have been slow to pay off. This is mainly because consumers are reluctant to pay a premium for 5G as they are not convinced of its additional value. In response, telcos kept the pricing lower to remain competitive, making it difficult to recover infrastructure costs and slowing revenue growth.
Without a doubt, the telecom landscape is shifting fast. In the business-to-consumer (B2C) market, telcos must position themselves as central to consumers’ digital lives by offering reliable connectivity, personalized services, and standout customer experiences (CX).
Meanwhile, B2B clients are demanding more than just connectivity; they now require end-to-end digital infrastructure, including computing power and advanced solutions like AI-as-a-service (AIaaS) and GPU-as-a-service (GPUaaS). Security, scalability, integration, and dedicated support have become non-negotiable expectations.
The Strategic Value of Becoming a Techco
Transitioning into a techco opens up diversified revenue opportunities and enhances market competitiveness, preparing telcos to thrive in a fast-evolving digital economy.
By turning into digital lifestyle hubs, telcos can tap into new income sources beyond voice and data, significantly reducing reliance on commoditized services. This shift not only improves competitive positioning but also creates deeper value for customers.
As Sanjay emphasized, with multiple growth engines in motion, telcos must “never stop innovating,” and instead, continuously evolve to build lasting customer loyalty through comprehensive and forward-thinking service offerings.
When a customer’s digital life becomes embedded with a telco’s brand, “they are more likely to stay,” driving long-term retention.
Making bold bets is also a smart strategy for this transformation. “You don’t need to build the next self-driving car, but you should keep fingers in the pies of different emerging digital markets,” Sanjay advised, highlighting the importance of proactive exploration in high-potential sectors.
Act Now or Fall Behind
As the value of becoming a techco becomes clear, Circles underscored a clear warning: If a traditional telco hasn’t begun its digital transformation, it must start now, otherwise, it risks being overtaken by competitors.
While infrastructure and network operations remain important, the real differentiators today are customer-centric services and seamless user experiences (UX). Unfortunately, legacy systems and outdated processes continue to limit telcos’ agility, slowing their ability to innovate and meet evolving demands.
One major obstacle lies in complex integration environments. Often described as “spaghetti,” these tangled setups of custom-built vendor solutions are difficult to manage. To meet consumer expectations for speed, personalization, and real-time interaction, “smart telcos are already simplifying, automating, and investing in real-time customer intelligence,” expressed Sanjay.
However, he pointed out that the biggest transformation must start from within. “Your mindsets. Your culture. Your software. Holding onto any outdated processes or software will cause problems,” Sanjay said. It’s worth keeping in mind that even if the overhaul could be overwhelming, “the long-term savings and your new capabilities are what you need to survive,” he continued.
Adopting a client-first approach becomes critical in delivering high-quality digital experiences at speed.
At the same time, telcos must strengthen their approach to cybersecurity and regulatory compliance. As services become more interconnected, the risk of cyberattacks grows. Hence, ensuring legal frameworks and data protection standards are in place is needed.
“Telcos shouldn’t be running away from these problems but should be racing ahead of the competition to become ideal DMOs,” asserted Sanjay. “The winners will be the ones who can move fast, stay secure, and deliver exactly what their customers want, when they want it. That’s the edge. That’s how you lead the digital shift instead of getting swept up in it.”
Steps for Holistic Techco Transformation
To help telcos move from legacy-heavy operations to future-ready models, Sanjay shared how Circles has encapsulated what truly works into a real transformation model with three essential goals: connecting, delighting, and going beyond. This framework reflects what has worked in real-world deployments and outlines a practical roadmap for those ready to lead in the digital era.
The journey begins with a clear-eyed assessment of current capabilities, laying the foundation for digital and cloud transformation. This enables telcos to understand the limitations of their legacy systems and the need for a better operating model that can support rapid innovation.
Next, telcos must decide where they will play in the techco world. They must ask themselves whether they will target businesses, consumers, or both.
Considering key value streams is the next logical step. This involves identifying which business areas can deliver the most impact and tie in with investments in digital infrastructure and the adoption of agile business models. Recognizing the core capabilities required to deliver these value streams is equally important, as it supports the shift toward better operating models and reinforces the need for a deep cultural transformation within the organization.
Defining a clear strategy for the transformation journey brings all these elements together. It sets the vision and execution plan, ensuring alignment between technological upgrades and broader business goals. But to truly go beyond the tech, telcos must embrace a cultural shift by not only transforming systems but also improving processes and empowering people, ingraining talent, compliance, and governance into their corporate DNA to do so.
Finally, to accelerate progress, telcos must leverage partnerships, co-development, and external support. This reinforces the ecosystem-building and collaboration pillar, enabling telcos to tap into wider expertise, share risk, and scale innovation faster.
Based on Sanjay’s projections, the exciting part is that when telcos lean into this transformation, the payoff is massive as they are able “to run not just the best networks, but build well-loved ecosystems,” establishing themselves as telco champions of tomorrow.
Disruption Is Here. Are You Ready to Win the Digital Race?
Over 50% of telco spending is being channeled into network efficiency and digital innovation while artificial intelligence (AI) adoption is rising sharply; thus, the telcos that will win in the long-run will be those that move beyond networks to become experience-driven, ecosystem-first techcos.
To achieve this, telcos must act with clarity and courage, shedding legacy mindsets and investing in capabilities that resonate with modern consumers and businesses alike.
Those willing to evolve—culturally, operationally, and technologically—will not only survive but lead in their positions. By turning disruption into strategic advantage and trust into long-term value, they will set the pace for the telecom industry’s future.
Circles is actively creating blueprints for future telco and digital experiences. To explore more about the steps for a successful telco-to-techco transformation, download the full article: https://doc.circlesglobal.com/hubfs/Telco-to-Techco%20ft.%20Sanjay%20Kaul.pdf
