Joy Agwunobi 

A new report by GSMA Intelligence has called on global telecommunications operators to urgently rethink their business cultures, restructure operations, and embrace partnerships even with competitors if they hope to capture the fast-expanding business-to-business (B2B) opportunities emerging beyond traditional network connectivity.

The report, titled “The Telco Culture Pivot: Adapting Sales Strategies to Win in the Enterprise,” highlights a fast-evolving enterprise landscape in which telecom operators must transition from being mere connectivity providers to becoming holistic technology partners capable of delivering complex digital transformation solutions to businesses across multiple sectors.

According to GSMA Intelligence, the addressable market for non-telco IT services is projected to hit $500 billion by 2025, and could nearly double to $1 trillion by 2030, offering what it describes as a once-in-a-generation  opportunity for operators to diversify revenues and boost long-term relevance in an increasingly digital economy.

Despite their dominance in connectivity, the report found that most telcos are yet to secure a meaningful share of this lucrative segment. It revealed that while industries such as manufacturing, finance, automotive, and aviation represent around 40 percent of total enterprise demand for new technologies, only 10–15 percent of companies in these sectors currently procure non-connectivity services from telecom operators.

This widening gap, the authors warn …  a fork between evolution and stagnation, they noted that those that fail to transform risk losing out on enterprise contracts to cloud hyperscalers, IT service providers, and software startups that are already delivering more flexible, outcome-based solutions.

Beyond connectivity: A market on the move

For decades, telecom operators have relied on their strengths in network reliability and scale. However, GSMA Intelligence observed that this model selling bandwidth wrapped in enterprise branding no longer fits a world where business clients expect deep collaboration, joint innovation, and commercial models tied to performance outcomes.

“By 2030, enterprises will spend nearly $3 trillion on B2B technology services outside core telecoms.Mobile operators can potentially claim close to $1 trillion of that number, but capturing it requires significant cultural and operational change, not just new product launches,” the report stated.

The study noted that digital transformation across industries is accelerating demand for technologies such as artificial intelligence (AI), Internet of Things (IoT), robotics, big data analytics, augmented and virtual reality (AR/VR), and cloud computing all of which are reshaping supply chains and creating new revenue streams.

GSMA Intelligence estimated that telcos could realistically capture about one-third of the global $2.91 trillion B2B technology services market by 2030 if they leverage existing strengths in infrastructure, data management, enterprise security, and customer relationships, while investing strategically in new capabilities.

Sectoral breakdown

The report identified manufacturing, automotive, finance, and aviation as the four industries driving the greatest demand for B2B digital services, collectively accounting for about 40 percent of operators’ addressable revenue. Among them, the manufacturing and automotive sectors are leading the charge in adopting cloud computing, edge technologies, and the Internet of Things (IoT) to automate factory processes, enable real-time data management, and enhance workforce productivity through interconnected systems. Together, these two industries represent nearly 19 percent of the total operator opportunity.

In the financial sector, institutions are placing strong emphasis on cybersecurity, fraud prevention, and process automation, alongside initiatives aimed at delivering seamless digital customer experiences. Meanwhile, the aviation industry spanning airlines and airport operators is increasingly deploying digital solutions to upgrade outdated systems, streamline daily operations, and elevate the overall passenger journey.

Product opportunity

From a product standpoint, cloud and data centre services account for more than half of the potential addressable revenue, according to GSMA Intelligence. While public cloud providers such as AWS and Azure maintain strong market positions, operators can still carve out competitive niches in hybrid and multi-cloud orchestration, especially for small and medium enterprises (SMEs).

Leveraging their existing network and data centre infrastructure, operators are well positioned to develop industry-specific SaaS solutions, enhance data analytics and API-based services, and even serve national needs for sovereign cloud and edge computing.

The report also emphasised that cybersecurity represents a natural extension of operator strengths. Their experience in network monitoring, identity management, endpoint security, and zero-trust frameworks gives them a competitive advantage, even as pure-play IT security vendors dominate in application-level security.

Beyond these areas, GSMA highlighted emerging growth zones in generative AI (GenAI) and network API monetisation, noting examples such as China’s telcos integrating AI with IoT and 5G for smart manufacturing, and operators like Telefónica, Telkomsel, and Vodafone leveraging APIs to create new revenue streams.

Enterprise expectations

Across all verticals, cybersecurity and cloud adoption rank highest among enterprise technology priorities. Businesses, however, increasingly prefer hybrid and multi-cloud setups, combining public and on-premise environments to improve flexibility and security.

The report added that GenAI has become central to enterprise digital transformation efforts, while edge computing is gaining traction for use cases such as digital twins and industrial robotics which require computation close to end-users.

But GSMA Intelligence stressed that enterprises no longer seek “one-size-fits-all” solutions. Instead, they demand customised, domain-specific services tailored to their business goals, whether focused on cost reduction, revenue growth, or customer experience enhancement. This demand for bespoke solutions has created space for systems integrators and left most operators lagging behind.

According to the report, only about 11 percent of enterprises globally currently work with telecom operators for non-connectivity services across the five key product categories studied.

What it takes to win

GSMA Intelligence concluded that winning in the enterprise space requires a complete pivot from product-centric to solution-centric operations.

“Operators are not currently structured to deliver highly bespoke digital solutions. The traditional model, where a single product is designed and pushed to all customers, no longer suffices in today’s enterprise environment,” It noted.

Instead, success will depend on repositioning operators as partners rather than sellers, offering deep consulting, flexible contracting, and outcome-based service models.

The report also underscored the need for internal restructuring, suggesting that telcos emulate “tech-co” models by carving out dedicated B2B subsidiaries capable of greater R&D autonomy and customer focus.

Furthermore, while AI is increasingly shaping operator strategies, less than 30 percent of telco employees currently have advanced AI training, a skill gap the GSMA warns must be addressed to enable innovation and improved customer engagement.

Beyond skillsets, the study emphasised the importance of fostering an ecosystem-based approach, blending internal development with external partnerships and, where necessary, targeted mergers and acquisitions (M&A) to fill capability gaps.

Adapting for the future

Additionally, the report  urged operators to adopt agile product development and flexible pricing models to compete effectively in the enterprise space.

Network APIs are a good example of how operators can monetise their network assets. However, to do this, they must adapt to what developers want and embrace much more flexibility in their pricing approach and industry engagement,” the GSMA added.

In conclusion, the GSMA Intelligence report underscored that the future of the telecom industry hinges on adaptability and reinvention. It noted that operators who act decisively by reshaping their corporate culture, embracing co-opetition, forging strategic partnerships, addressing skills gaps, and positioning themselves as trusted digital transformation partners stand to unlock a trillion-dollar opportunity. While those that remain bound to legacy models risk obsolescence in an era where mere connectivity is no longer sufficient.