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The telecommunications industry is experiencing a shift, evolving beyond traditional connectivity services to become technology-driven enterprises. According to Canalys’ report, Telco evolution: how partners help telcos perform like big tech, the total addressable market for telco services is expected to reach US$1.49 trillion by 2025, reflecting a 3.7% annual growth rate. However, IT services are projected to grow even faster, reaching US$1.75 trillion with a 10.7% growth rate. This contrast underscores the necessity for telcos to diversify their revenue streams by integrating advanced IT solutions, such as AI, big data, and cloud services.
The Role of Channel Partners in Telco Transformation
To accelerate this transformation, telcos must leverage the expertise of channel partners who can provide vital tools and services. Canalys identifies several key contributors to this transition:
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Technology Service Distributors (TSDs) & Marketplaces – Curating and customizing telco solutions while enabling broader market reach.
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Value-Added Resellers (VARs) – Bundling telco connectivity with cutting-edge IT solutions to create compelling offerings.
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Systems Integrators (SIs) & Aggregators – Facilitating large-scale digital transformation projects by integrating connectivity with enterprise-grade IT solutions.
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Managed Service Providers (MSPs) – Delivering fully managed IT and telco service packages to ensure quality and performance.
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Independent Software Vendors (ISVs) – Developing software solutions that enhance telco services and unlock new revenue opportunities.
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Hyperscalers & Cloud Providers – Leading hyperscalers such as Microsoft, Google, and AWS offer cloud-based solutions that scale with telco needs, enabling telcos to leverage infrastructure-as-a-service (IaaS) and software-as-a-service (SaaS) models
With 80% of partners already bundling telco connectivity with IT solutions, it is evident that convergence between IT and telecom is becoming the new standard. To stay competitive, telcos must optimize these partnerships, refine their go-to-market strategies, and embrace new business models that align with the agility of big tech firms.
How AppXite Accelerates the Telco-to-Techco Journey
AppXite provides the critical technological foundation that enables telcos to successfully navigate this transformation. Our advanced digital marketplace, CPQ, and billing management platform is designed to automate telcos’ business operations, build channels and scale globally.
Key Ways AppXite Supports Telcos:
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AI-Driven Catalog & Offer Management – Telcos can leverage AI-powered features to dynamically create and manage product catalogs, simplifying complex service offerings.
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Automated Billing for Modern Monetization Models – The AppXite platform supports Pay-as-you-Go, peak usage, reservation-based, and AI-based billing, making it easy for telcos to handle diverse pricing structures.
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Seamless Integration with Leading Vendors – AppXite provides seamless integrations with hyperscalers (Microsoft, Google, AWS) and major IT service providers, ensuring a smooth transition to an IT-driven business model.
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End-to-End Service Delivery – With automated workflows for provisioning, invoicing, and contract management, telcos can improve customer experiences while reducing operational costs.
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Comprehensive Self-Service Tools – The AppXite platform enables both partners and end customers to manage their services efficiently, reducing the reliance on manual processes and improving customer satisfaction.
The Future of Telcos: Leveraging Partnerships for Growth
Telcos that successfully embrace this transformation can unlock substantial new revenue streams and create more value for their customers. By leveraging AppXite’s platform, telcos can streamline financial operations, and manage their IT service portfolios all in one central business operational platform, positioning themselves at the forefront of the evolving telecom landscape.
The Canalys report makes it clear: the future of telcos lies in their ability to act like big tech companies. With the AppXite platform, telcos can seamlessly transition into techcos, delivering innovative, high-growth solutions that drive scalable business success.
