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How telcos can transform their B2B growth outlook

A changing geopolitical environment coupled with rising security needs offer ICT providers new opportunities to reinvigorate their B2B growth.


In brief

  • While enterprises’ spending on emerging technologies remains strong, their criteria for choosing integrated communications tech providers is changing.
  • Geopolitics, data sovereignty and cybersecurity are combining with advancing technology to put AI and security capabilities at the top of B2B customers’ wish-list.
  • Telcos’ key role in national economies and strong security credentials make them well-placed to win as integrated tech providers in this changed environment.

The technology investment agenda for enterprises is evolving at pace – with businesses alert to new opportunities from network application programming interfaces (APIs) through to sovereign cloud and 5G stand-alone infrastructure. At the same time, changing compliance landscapes are forcing businesses to reassess their vendor ecosystems while artificial intelligence (AI) is rewriting their expectations around vendor sales and support experiences.

While these changing enterprise buyer imperatives pose challenges for all information and communications technology (ICT) providers, the reality is that several of them play to the strengths of telecom operators. Most notably, in a more uncertain and sovereign-orientated global environment, telcos’ position as regulated national infrastructure providers with well-developed security capabilities has boosted their attractiveness as suppliers.

There are new opportunities for telcos to increase their relevance to enterprise customers and elevate their growth trajectory in this high-value segment. To achieve this, they must take steps to enhance their customer relationships in new ways – while adapting their service portfolios, commercial models and ecosystem positions to maximize long-term value.

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Chapter 1

New factors are weighing on enterprise investment decisions

Levels of enterprise technology adoption are encouraging, but changing external and internal factors are complicating their investment strategies and supplier choices.

The outlook for enterprise investment in transformative technologies is promising: various iterations of AI are prominent on the investment agenda and 5G exposure is trending up, with overall IT and connectivity spending set for near double-digit growth.1 Yet this appetite for transformational technologies is also shaped by a new wave of external considerations, as policies and laws governing data now supersede other external factors influencing investment decisions. These responses underline a supply-side environment where data control, technology self-reliance and economic growth are increasingly interwoven in industrial policymaking. While geopolitical fracturing is not dampening investment plans, service providers will need to adapt, given that 77% of businesses are reassessing their supplier relationships as a result of a more volatile policy environment.


As organizations adapt to new forces shaping their technology adoption plans, leadership involvement in investment decisions and supplier choices is also in flux. While CTOs and CIOs are reasserting control in decision-making – reflecting the broadening remit of technology leadership roles – many parts of broader leadership teams still have a say in transformative technology spend and supplier choices. While this diffusion of responsibility can bring new and different perspectives to bear, it also raises the risk of dissonance: 65% of enterprises say that building consensus on investment decisions is challenging, an issue most marked among energy and utilities organizations (73%). As organizations create additional C-level roles,2 service providers should be alert to changing technology stakeholder groups inside the enterprise.


Chapter 2

Supplier ecosystems are widening as enterprise demands evolve

Allied to the growing appetite for network API capabilities, the shift to sovereign cloud is paving the way for telcos to achieve greater prominence as businesses engage with new supplier ecosystems.

Demand for sovereign cloud is on the rise, fueled by geopolitical upheavals and greater policymaker focus on technology self-reliance. Businesses are responding to these shifts, with 17% of enterprises currently investing in sovereign cloud and 53% planning to invest. But these new spending priorities signal disruption as well as demand: businesses are reappraising their cloud vendors with digital sovereignty in mind. Leading hyper-scalers are now offering sovereign cloud solutions,3 and businesses are receptive to their offerings, either provided on their own or with local partners.

At the same time, businesses also signal interest in telcos’ sovereign solutions, suggesting healthy “right to play,” particularly for those with extensive network coverage and related assets such as edge computing sites. For all types of ICT providers, partnerships will be critical: most enterprises prefer to buy sovereign cloud through a service provider ecosystem to balance data control and compliance with flexibility and business continuity.


Network APIs also hold high potential for ICT providers, with telcos representing 80% of global mobile connections developing APIs as new “network-as-a-service” business models come to the fore.4 Customer onboarding and fraud management score well as APIs favored by enterprises, with service quality on demand – a premium API where the network performance can be adjusted to suit application needs – also in focus. As with sovereign cloud, businesses are also mindful of the different purchasing channels available to them. Although some would prefer to buy directly from a mobile operator, cloud vendors and Communications Platform-as-a-Service (CPaaS) providers are also in the frame as suppliers, underlining that telcos need a robust channel strategy as part of their go-to-market approach.


Chapter 3

Security and AI capabilities are in focus as firms reappraise vendors

Enterprises now rank security and AI embedded in service delivery above other ICT supplier attributes – and many view telcos as more than just connectivity providers, indicating room to grow mindshare.

As businesses contend with new external pressures informing technology investment decisions and supplier ecosystems evolve, the competencies they value in vendors are shifting. Security now ranks first as a supplier attribute, reflecting the rising importance of data protection at a time when cybersecurity budgets are increasing by more than 14% year-on-year.5 AI embedded in vendor service delivery ranks second, underlining growing demand for informed and frictionless interactions with suppliers. Meanwhile, speed of deployment and execution is less of a focus as a current need, with businesses looking to balance security needs with the desire to innovate and execute at pace. 


Enterprises tend to rate IT services providers and cloud vendors ahead of telcos for expertise in delivering business outcomes. As telco operators look to close this gap, they can take heart that many customers see them as more than just connectivity providers. With growing security and digital sovereignty needs in mind, many executives – led by healthcare (39%) and government organizations (38%) – view them as digital infrastructure guardians.

The outlook is positive for telcos that can position themselves as resilience experts, particularly given the emergence of new security-oriented services such as sovereign cloud and fraud management APIs. Businesses are also receptive to telcos acting as trusted ICT advisors, signaling scope to develop more consultative customer relationships, in which telcos orchestrate other technology suppliers to help enterprises maximize value from new technologies.


Chapter 4

Enterprises will reward outcome centricity and frictionless interactions

Telcos are well-placed to meet business’ changing technology requirements but only if they deliver better business outcomes through more informed and agile relationships.

Enterprises are looking for suppliers who truly grasp their strategic needs: the need for better understanding of their business and technology priorities (43%) is the top vendor improvement they would like to see. Against this backdrop, suppliers are falling short in key respects: businesses feel that vendors do not demonstrate how they have used technologies internally to aid their own transformation or provide enough case studies demonstrating value delivered to customers. Low awareness of vendors’ partner ecosystems is another blind spot for corporate customers.

Telcos that can offer contextualized success stories aligned to customers’ business imperatives instead of technology capability statements will be able to win customers’ trust more rapidly. Delivering these improvements is now mission-critical: 43% of businesses plan to consolidate vendors in the next 12 months – up from 35% last year – indicating the pitfalls for suppliers that don’t raise their game.

Enterprise attitudes to supplier case studies and credentials
59%
of respondents agree vendors don't show how they use transformative technologies internally and provide too few customer references demonstrating their ability to deliver improved business outcomes.

While businesses want vendors to demonstrate deeper understanding of their needs, they are also looking for more proactive and responsive interactions with their suppliers on the ground – especially given that 63% of enterprises believe customer support falls below expectations. Higher quality after-sales experiences and better access to vendors’ additional expertise stand out as key demands. Vendors that can help customers scale transformative technologies inside the client organization while leveraging their partner networks to mitigate skills and learning gaps stand to benefit.

Organizations are also keen to reduce complexity, with demand for more agile sales interactions and simpler product options also apparent. Looking ahead, delivering greater efficiency and effectiveness in day-to-day customer interactions will be essential. Telco CEOs recognize this, with 79% optimistic that they can modernize front-office capabilities for enterprise customers, according to the EY CEO Outlook Survey 2026.


Next steps: Five actions for telcos to transform their B2B customer relationships

As operators reevaluate the growth potential of the enterprise segment, they should recognize that changing customer demands are characterized by ambivalence. While telcos can target greater share of wallet with broader service portfolios, security needs and geopolitical fracturing are asking new questions of established partner ecosystems. At the same time, the complexion of buyer groups is evolving rapidly, even while the technology spending outlook itself remains robust overall.

Opportunities for growth co-exist with the potential for disintermediation, with transformative technology adoption increasingly nonlinear, accelerated, volatile and interconnected (NAVI). To thrive in an environment where buyer-seller dynamics are becoming more complex, service providers must develop their value propositions and enhance customer interactions in new ways. Here are five key steps to help telcos maximize their B2B growth outlook:

1. Respond to businesses’ growing need for security and data integrity

The survey results point to a changing regulatory environment – one where geopolitical fracturing and policymakers’ focus on technology self-reliance are increasingly influencing enterprises’ technology decisions and supplier choices. At the same time, security expertise has become the top attribute that businesses are seeking in their ICT suppliers. With digital sovereignty acting as a powerful new force in vendor selection, double down on your security credentials to meet business customers’ more stringent data protection needs – while also ensuring that security principles underpin your partner ecosystem formation and collaboration.

2. Revitalize your service portfolio and partner ecosystem based on your optimal “right to play”

Enterprises participating in our study voice growing interest in new technologies and associated use cases, from sovereign cloud through to network APIs and GPU-as-a-service. More broadly, the growing intersection of connectivity and computing is challenging ICT suppliers’ go-to-market approaches and supporting partner ecosystems. To thrive in this fast-changing demand landscape, identify and isolate areas of your service portfolios where you can extend your value proposition, either alone or with the help of partners. Stress-test your “right to play,” considering how best to leverage your unique assets in a crowded supplier landscape.

3. Educate businesses on technology transformation, positioning yourself as “client zero”

Businesses are clear about the type of vendors and supplier relationships they need: those that are centered on business outcomes and where vendors act as consultative partners throughout the lifetime of transformative technology deployment. To meet these demands, strive to have business customers not only appreciate the “art of the possible” with transformative technologies and associated business models but also take confidence from well-documented case studies of successful implementation and delivery against business goals. This will require ICT providers to present themselves as “customer zero,” showcasing how new technology can deliver positive business outcomes.

4. Boost your mindshare as a transformation advisor across the enterprise C-suite

A diverse array of leadership perspectives now informs enterprises’ technology decisions and supplier choices. And our research shows that those ICT vendors with the highest levels of receptivity among customers as business outcome or ecosystem experts tend to outperform in cases where the CEO acts as a key stakeholder in technology transformation. To capitalize on these trends, cement your relationships with existing stakeholders while also building new relationships as buyer groups evolve. The ability to sensitize your technology discussions to different parts of the C-suite will also help you better understand the linkages between your clients’ technology strategy and business goals, differentiating you in the longer term.

5. Double down on improved customer sales and support processes with AI at the center

While businesses are looking to place frontier technologies at the heart of their long-term transformation, they are also looking for ICT providers to deliver upside at a more functional level, through more meaningful buyer-seller interactions. Strengthen your relationships within client organizations at all levels, not just the C-suite. Embedding AI in service delivery has become a critical vendor attribute – and business customers will respond positively to service providers that can deliver more informed and frictionless customer experiences aided by digital tools. The reality is that AI-first interactions hold the key to delivering the consumer-grade support that today’s B2B customers demand.


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Summary

As enterprises worldwide continue to channel substantial investment into emerging technologies, their choice of implementation partners is being influenced and reshaped by a widening range of factors. These considerations include an increased emphasis on data sovereignty, growing security risks and rising demand for service enablement with AI  ̶  all areas where telecom operators can claim a potential edge over many other types of ICT suppliers. However, to realize this opportunity, telcos will need to revamp and elevate their interactions and relationships with B2B customers, while also taking action to enhance both their product suites and partner ecosystems.

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