Comarch’s global survey of telecommunications operators identified process and network virtualization as their top operational priorities. With 70% of respondents expecting at least half of their services to be cloud-based within five years, the need for operational transformation is clear.
Telco operators are increasingly focused on migrating from legacy systems to infrastructures that can meet the speed, capacity, and automation demands of today’s market. Those unable to evolve will face growing disadvantages as consumers rely more heavily on mobile data and connected services.
Customers want data, not minutes
Consumers are spending less on voice minutes and SMS and far more on data. Messaging apps have largely replaced traditional SMS for many users, and internet voice and video calling let people communicate globally without expensive voice-only plans. Spending on mobile apps and data-driven services continues to rise, reshaping how users value connectivity.
Operators are exploring new business models to respond to this app- and data-centric world. For example, some operators have begun offering plans that exempt specific social or messaging services from counting against monthly data allowances, reflecting shifting customer priorities.
How telcos are responding
Traditional telcos operate within strict regulatory frameworks that newer, digital-native competitors often avoid. Comarch’s survey shows operators are looking for ways to meet customer needs while complying with these rules.
Partnering with over-the-top (OTT) providers is the most common approach, with 42% of respondents choosing bundled services. Another 24% are developing their own OTT offerings in-house.
Overall, 18% of operators are repositioning themselves as multiplatform providers to serve OTTs, while 14% emphasize superior quality of service as a differentiator. Given the large volumes of customer data they hold, telcos have a valuable opportunity to build strong customer relationships—provided they can analyze and act on that data effectively.
Telcos recognize the need to adapt to changing customer expectations. The challenge lies in how they will implement that adaptation.
Barriers to transformation
Despite recognition of the need for digital transformation, operators face substantial obstacles. Comarch’s study found that 35% of respondents believe their legacy systems cannot support implementations of software-defined networking (SDN) or network functions virtualization (NFV).
Even when there is willingness and technical capability to virtualize systems, processes, and network elements, outdated IT infrastructure can prevent progress. Without an adequate foundation, virtualization initiatives struggle to launch.
Company culture is another major barrier. Twenty-three percent of respondents indicated their organizations would need a cultural shift before virtualized approaches could be widely adopted. Successful transformation requires cross-department collaboration, new skill development through training or hiring, and managerial buy-in. For many long-established telcos, these cultural changes are difficult and slow to implement. The industry can benefit from looking at other sectors that have successfully navigated similar cultural shifts.
The survey also identified a lack of a compelling business case as a problem for 20% of respondents, and another 20% doubted whether the projected cost and efficiency savings would materialize. Legacy operators that have operated profitably for decades may find it hard to secure internal support for large-scale change, particularly when technical hurdles exist and returns on investment may not be immediate.
Regulation is often cited as a major constraint on telcos’ digital transformation. While regulatory differences do matter, many of the more difficult barriers are internal and complex. Established operators often carry decades of legacy IT, processes, and organizational structures that shape corporate culture. For these players, virtualization is not a simple switch to flip.
How telcos can succeed
Adapting to the new market requires innovative thinking, a readiness to change, and targeted investments in modern systems. Operators that commit to overcoming internal challenges—updating infrastructure, cultivating new skills, fostering collaborative cultures, and building solid business cases—will be positioned to meet surging data demand and thrive in the digital marketplace.
Those who move decisively will operate networks capable of handling dramatic increases in data traffic and will be best placed to capture the opportunities of a services-driven future.
Do you think telcos are showing a willingness to adapt? Let us know in the comments.