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What are the main challenges of the telco to tech-co journey?

March 11, 2025
Publisher: Telecom TV

Niladri Dutta, Global Telco Industry Consulting and Solutions Leader at Virtusa, recently spoke with TelecomTV about the Telco to Tech-co transformation and the critical shifts required for success. He emphasized that aligning new business models with existing operating models requires more than just technology investment—it demands a leadership-driven mindset shift to fully embrace AI and automation.

Dutta highlighted the transition from cloud-native to AI-native networks, noting that while many Telcos claim to be AI-driven, they often engage in "AI-washing" rather than truly leveraging AI’s capabilities. He underscored the importance of Edge AI, which can transform networks into the future cloud, enabling real-time decision-making and efficiency improvements.

Another key challenge is scaling 5G innovation. According to Dutta, Telcos must move beyond traditional approaches and integrate AI, automation, and advanced analytics into their offerings. This will unlock 5G’s full potential, driving operational efficiency and new revenue streams.

Additionally, he stressed the need to shift from a connectivity-driven B2C focus to B2B and B2B2X models. This evolution allows Telcos to provide AI-enhanced enterprise solutions, ensuring long-term growth in a competitive landscape.

Dutta concluded by emphasizing the importance of organizational change management, advocating for a structured transformation strategy that fosters innovation, scalability, and a culture of AI adoption. Telcos that embrace AI-native principles and align technology with business objectives will lead the next wave of industry transformation.

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