With the entire world obsessed by artificial intelligence (AI), telecom service providers are still figuring out how to position themselves in the market and to profit from possible opportunities.
To address the potential opportunities to serve enterprise customers presented by the AI boom, North American telecom service providers have found that it is a complex, confusing, and immature marketplace, according to an analysis by leading data and analytics company GlobalData.
“AI in enterprise telecom shows many characteristics of the early stages of the Internet and cloud revolutions,” says Robert Pritchard, principal analyst, Enterprise Technology & Services at GlobalData. “Everyone knows it’s really important, but many service providers are struggling to work out their strategies.”
GlobalData analysis finds that many traditional service providers in the US – national telecom service providers and cable companies – have struggled to develop what might be called “AI products”. In contrast, Canadian service providers like TELUS and Bell Canada seem to be far more advanced.
“Maybe it is because the Canadian operators have less of a legacy base or are more agile, but they seem far better at addressing the enterprise AI opportunity – from products to solutions and consulting,” says Pritchard.
GlobalData also notes the importance of a strategic focus on enterprise AI that aligns with the overall corporate strategy of telecom service providers.
“Having a clear approach is vital in such a dynamic market,” says Pritchard. “Lumen has clearly positioned itself as a provider of AI-ready infrastructure. T-Mobile has partnered with Dialpad to get to market with relevant point solutions for business customers. This dynamic market requires focus and clarity.”
GlobalData’s analysis also highlights that the enterprise AI opportunity is also a threat as value-added resellers (VARs) and managed service providers (MSPs) will also exploit the market disruption to their benefit by using their customer intimacy to win new business and grab market share.
“Literally every enterprise is examining AI as an opportunity,” Pritchard says. “There are point solutions today in areas like contact centre and CX services that are obvious and should be in place for customers already. But that is just the tip of the iceberg. Service providers need to sort out their strategies, roadmaps, and communications. If not, they will not just miss out on the new opportunities, their core business will suffer.”