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Several telcos are refocusing on their core business amid economic challenges. Does this spell an end to their techco dreams?
Welcome to our ‘Coffee break reading’ series. These pieces are designed to be short and easy to read, presenting our opinion on a hot topic and challenging you to think about it too.
In this edition, we focus on whether it is possible for telcos to keep their telecom techco ambitions alive when economic challenges start to limit investment funds, and shareholders demand short-term returns.
It is clear that telecom techcos cannot take their eye off core business, while they invest in the new. It is the foundation for business expansion. For some telcos, if their core business starts to feel more precarious in an economic downturn, they pull back from their techco strategies to bolster their telco strengths. The step back from techco ambitions may be temporary, or may signal alonger term switch in strategy. Returning to the core, while a sensible option in the circumstances, implies an acceptance of lower growth – and it may also carry real opportunity costs.
Learn from three key example telcos pursuing return to core strategies in three different continents.
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Our insight covers the following key points:
- Why telcos back off from telecom techco ambitions and return to the core
- Return to core examples – AT&T, BT and Spark New Zealand
- What can go wrong?
- Conclusion
Related research
- The telecom techco: The role of network cloud, automation and AI
- Telecoms 2030 part3: Pathways to infraco, servco and telecom techco
- The telecom industry in the AI era: How can telcos follow the money?
