90 minutes separate two completely different worlds

It’s a short 90-minute flight from Copenhagen to Brussels. But in June 2024, this short distance separated two very different worlds. In Copenhagen, the DTW24-Ignite TM Forum began on June 18. A week later, on June 25, the MVNO World Congress began in Brussels.

During DTW24-Ignite the message was sad and in some cases alarming. During his opening speech, TM Forum CEO Nick Willets reminded the audience, “Nine months ago, I was on this same stage and we declared a Code Red for this industry. We all know the facts. The digital economy is growing three times faster than the non-digital economy. By 2030, 30% of global GDP will be digital. And yet this industry – the industry that is the backbone of this economy – is struggling to keep up with inflation.”

Much of the discussion around automation and simplification has been driven by a focus on cost reduction. The explosion of generative AI (GenAI) capabilities is creating new opportunities to reduce costs in network automation and customer service, among many other areas.

One of the most striking comments came from Kim Krogh Andersen, director of Telstra Product & Technology Group, who called the industry a “platform burner” and aggressively called for a focus on “ruthless simplification” of operational processes, including changing an industry culture that is inherently resistant to change. Many other keynote speakers echoed this perspective, and there was also a noticeable interest in modernizing business support system (BSS) platforms, including a growing demand for SaaS options.

GenAI and Responsible Human-Centric Technology

It was also somewhat comforting to hear that “responsible GenAI” is at the forefront of telecom executives’ minds. This is not just because of security risks, but because of a real commitment, at least in Deutsche Telekom’s case, to ensuring that the technology delivers practical benefits to customers, not just cost and monetization benefits for telecom operators.

“Let’s be the most ethical, most human-centric industry in the world. What we did wrong decades ago when we over-monetized our customers and others could tear us down, now we’re going to tear down those who tear us down – because a lot of AI algorithms just suck because they actually increase engagement but not truthfulness.” said Claudia Nemat, Member of the Management Board of Deutsche Telekom.

Towards Brussels and the development of MVNOs

DTW24-Ignite was not the most inspiring experience due to the ongoing concerns about a “code red” with no clear path forward. However, a week later, just 90 minutes away, the telecoms industry had a completely different look and feel at the MVNOs World Congress in Brussels.

The most noticeable theme at MVNOs World Congress was the exciting confirmation of growth for mobile virtual network operators (MVNOs) in virtually every region of the world, with double-digit growth in Africa and Latin America and expectations of similar opportunities in Asia. According to a chart shown during the opening session and provided by Omdia, MVNO growth in developed countries such as South Korea and Spain is increasing by more than 20%. Opportunities were everywhere, as was enthusiasm and a positive tone.

As expected, AI was a hot topic, as “neo-telcos” (digital native telecom brands) have very clear priorities, and AI is well-aligned with all of them. These priorities include a digital-first approach, a focus on innovation, and prioritizing simplicity and cost-efficiency.

You will certainly see similarities between the desperate pleas for simplicity and automation heard at DTW24-Ignite. However, the MVNO community does not carry the enormous burden of legacy infrastructure and custom systems, especially BSS systems that directly engage customers. Born in the digital age, MVNOs cannot imagine anything beyond a completely intuitive digital customer experience, while telcos struggle to survive the burden of the past.

eSIM and the invisible network are changing the rules of the game

In addition to AI, one of the most interesting topics was the power of eSIM technology. The focus was on more than just reducing roaming costs for travelers and simplifying the traditional physical SIM onboarding experience for mobile subscribers. The most important topic for all attendees who were actively exploring – and investing in – more vertically oriented B2B business domains was the IoT capabilities spanning smart home devices, wearable and medical devices, and smart phones with built-in mobile connectivity and AI.

You can imagine the future MVNO World Congress will have to be rebranded as manufacturers of mobile devices with built-in mobile connectivity become part of the revenue growth without even knowing what an MVNO is. The days of pairing devices with local WiFi SSIDs and managing a dizzying array of apps on our devices will be over.

The key takeaways from DTW24-Ignite and the MVNOs World Congress TM Forum are clear. As Constellation Research CEO Ray Wang said many years ago, “Digital Darwinism is not kind to those who wait.”

Now we will see whether the traditional telecoms industry will survive, or whether the new era of “neo-telcos” will see digital Darwinism take its toll once again. Copenhagen and Brussels may be just 90 minutes apart, but the simplification, automation and innovation in the telecoms industry compared to the new entrants are millions of miles apart.

The views expressed in this article are solely those of the author and do not represent The Fast Mode. While the information contained in this post is obtained from sources believed by The Fast Mode to be reliable, The Fast Mode is not responsible for any loss or damage resulting from any limitations of information, changes, inaccuracies, misstatements, omissions or errors contained herein. The heading is for convenience of reference and should not be considered as influencing the information presented.