Page 31 - SAMENA Trends - May 2025

ARTICLE SAMENA TRENDS

Techco 1.0: a comprehensive framework simple connectivity, presenting significant maintenance, and network optimization
facilitating a seamless transition to a opportunities for telcos to increase processes, enhancing brand image and
Techco model their share of the consumer's spending reducing service loss. Infusing AI into
The Techco 1.0 framework aims to through scenario-driven services. This operations not only helps telcos better
transform telcos for the digital future and meet user expectations, but also helps
growth. Techco 1.0 is built through three Consumer digital lifestyle improves O&M efficiency, minimize
paradigms: servitization (everything- service loss, and enhance brand
as-a-service), platformization (moving demands are evolving perception.
operations from silo to a unified digital beyond simple connectivity,
platform), and intelligentization (evolving presenting significant Beyond the development of core
telcos' technology infrastructure to prepare services, telcos must capitalize on their
for the age of AI). opportunities for telcos existing strengths, such as connectivity
to increase their share of infrastructure and established customer
Through these paradigms, the Techco bases to expand their service portfolios.
1.0 framework delivers well-defined the consumer's spending This involves the rapid development of new
approaches that help telcos grow core through scenario-driven and innovative digital services to enhance
services, create new innovative digital their influence in the intelligent digital
services, all built upon a 3A (5G-A/F5G-A, services. era. Referring to Techco 1.0 framework,
Always-online, and AI-driven) digital and innovative service development can be
intelligent infrastructure to drive business can be realized by enhancing current achieved through three key directions:
growth in the intelligent era. offerings, such as upgrading optical • New entries for digital life: in the digital
network terminals (ONTs) to FTTR and age, many telcos struggle with customer
Traditionally, MBB and FBB core services set-top-box (STBs) to AI home hubs, loyalty, allowing OTT providers to capture
account for significant revenue streams for alongside promoting home storage significant content value and achieve
telcos. During the transition to the Techco solutions. Furthermore, telcos should higher profits. However, telcos possess
model by the Techco 1.0 framework, these develop compelling cloud services like a unique opportunity to establish new
revenues have the potential for steady cloud storage and video surveillance. entries in AI and payment services,
development along three key directions: Ultimately, building a robust ecosystem is leveraging their local market knowledge
• Extend monetization dimension: crucial, leveraging their existing channels and technical strengths. With new AI
recent market research indicates that and platform capabilities to facilitate the applications emerging daily, telcos are
a significant 40% to 70% of consumers sale of integrated products and services, uniquely placed to create entry points
are willing to pay for enhanced online such as integrated IoT solutions, layered for users wanting to access this vast
experiences, spanning enterprise on their core mobile and fixed broadband array. In addition, the fact that 27% of
applications, video streaming, live communications. By prioritizing product adults globally lack bank accounts and
broadcasts, and gaming. Recognizing this and service innovation, telcos can 50% lack credit cards presents a clear
substantial demand, it's crucial for telcos transition from competing solely on their demand for accessible digital financial
to adopt a multi-dimensional approach installed base to creating new value, solutions. Exploring four services—New
to MBB/FBB monetization by exploring strengthening user loyalty, and driving calling, Fintech solutions, Home AI Hub,
and cultivating the requirements of revenue growth. and cloud-based mobile phones—can
higher-tier users. As telcos upgrade their • Extend operation effect: facing evolving create these entry points. Each allows
technologies and operations platforms, O&M challenges due to the continuous telcos to provide a rich array of digital
they unlock the ability to monetize evolution of their core businesses and lifestyle services, reimagining access to
connection speed, latency, and uplink network telcos must embed AI into the digital and intelligent world.
capabilities, a strategy already proven operations, as this will better position • New integrated ICT solutions for
viable in the Middle East and Central them to not only improve the operational industries: industry digitalization
Asia. These evolving monetization efficiency but also maximize the benefits presents a significant market, yet telcos
models have created mutual benefits for yielded by these improvements. This face competition from cloud providers
both users and telcos. Meeting specific shift from efficiency-focused efforts offering greater agility and integrated
user needs, telcos have delivered more to benefits-focused can be achieved in network solutions as part of their
predictable experiences and improved two phases. The first phase has telcos portfolio. To enhance competitiveness
service perception, particularly for VIP automate the management of their three in the intelligent era, telcos must
users as evidenced by their VIP identity, value streams by shifting from network develop an agile, service-oriented
consequently increasing ARPU, boosting KPIs to customer experience index (CEI); strategy, leveraging network assets,
VIP user retention, and enhancing telco applying AI for better complaint handling; advanced technologies, and enhanced
competitiveness. and using AI for efficient fault processing. cloud solutions. Traditionally, telcos
• Extend user scenarios: consumer digital The second phase of this shift will have have provided connectivity and data
lifestyle demands are evolving beyond telcos build synergies across experience, centers to OTTs and enterprises, acting

31 MAY 2025