SMBs: How telcos should approach them

SMBs are embracing 5G, cloud, and automation but face hurdles such as security, integration complexity, and resource limitations. This report examines how telcos can meet SMBs’ demands for seamless, secure, and manageable solutions, positioning themselves as integral partners in SMBs' digital transformation journey.

SMBs present untapped opportunities for telco growth

Telcos want to sell more than connectivity to enterprises, but capturing new opportunities relies on understanding the nuances of this market. Enterprises do not behave uniformly: factors such as size, industry and region present them with unique challenges and influence their priorities, strategies and purchasing behaviours.

Small to medium businesses (SMBs), which STL Partners defines as enterprises of less than 250 employees, form a large segment of the economic tissue in most countries. Telcos face limited growth in the consumer and large enterprise sectors where their propositions are well established. But historically, many telcos have lacked a well targeted approach to SMBs. In the current climate of stunted growth, they feel that these smaller enterprises present under-exploited opportunities which they are keen to develop. What many telcos lack however is a specific knowledge of these needs.

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This report leverages three enterprise surveys conducted by STL Partners between January 2023 and April 2024. It explores the specific challenges that SMBs face in the day-to-day running of their business and sets out recommendations for telcos on the solutions that best address SMBs’ connectivity and broader digital transformation needs.

Note that each survey uses its own definition of SMBs and in all cases covers a smaller population than our generic definition above (< 250 employees), specifically each survey covers the higher-tier of SMBs only in terms of size by employee. The exact size tiers of the respondents as well as the other characteristics of each survey are shown on the next slide.

Three enterprise surveys are discussed in this report

Table of contents

• Executive summary
• Reliable connectivity is critical for SMBs, and telcos should not underestimate the needs of this sector
• SMBs need trusted managed service partners to support them through their cloud transformation journey
• SMBs in manufacturing and transport are ready to invest in automation but need support from experts
• Conclusion

Related research

• Applying the platform mindset: STL Partners’ enterprise manifesto
• Finding growth by understanding SMB needs
• Transforming telcos’ role through managed cloud services

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Author

Ahmed Ali

Senior Analyst

Ahmed is Senior Analyst and a member of STL Partners research team. His areas of focus include edge computing, IoT and private networks within the Growing Enterprise and the Network Futures research services. Ahmed holds an MSc in Communications Electronics and Computer Engineering from the University of Nottingham.