Telcos’ sovereignty play

Not every telecoms operator has a viable opportunity to become a supplier of sovereign digital solutions. It is contingent on local market conditions. But where the market conditions are right, telcos have a role to play and have strong factors on their side:

• They have long been considered part of the country’s critical infrastructure.
• Their position of being regulated players builds trust at the national level that multinational hyperscalers may find hard to achieve. In some cases, telcos themselves are likely to be already sovereign-compliant.
• In some countries, telcos might even come under pressure (possibly in private) from the government to offer sovereign solutions.

The need for digital sovereignty is driven by the rising geopolitical uncertainty and unpredictability. It increases with every instance of abrupt change that impacts major world regions. The rising tide of nationalism is another important driver.

Without a requirement for digital sovereignty from a regulator or governmental policy, there is little incentive for enterprises to select sovereign solutions, which typically carry a price premium and a significant complexity that may impact their entire value chains. The value of sovereignty for business resilience might not become apparent until an adverse event (e.g., geopolitical shock) happens.

Many telcos have already launched solutions with some level of sovereignty. In the report, we examine examples and provide recommendations for telcos on addressing the demand for digital sovereignty.

Table of contents

• Executive summary and recommendations
• The sovereignty spectrum
• Key drivers of demand for sovereignty
• The telco landscape
• Competition and ecosystem

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