Telco’s: as a major player in the cyberspace

Bechara Kaddoum    13 July, 2021
Telco cyberspace

For over a decade, telecommunication companies have shifted their primary focus to the rapid expandability in the consumer market. This growth was mainly promoted by the wide cell phone use turned out to be nearly universal, in addition to broadband, TV and other data services sold by Telco’s to clients at home and on the go. Throughout the last couple of years, top management of these companies became progressively reliant on securing and developing the business market, where they saw new opportunities and undiscovered potential in services dedicated to B2B.

During the first wave of COVID19, Telco’s from all over the world had to answer the rising need to connectivity either by bandwidth or by availability with most of the companies shifting to remote work strategy and cloud. A tremendous job has been done to secure and provide the best service for customers, businesses or individuals, in a short period of time. José María Álvarez-Pallete Chairman & CEO of Telefónica said: “It is impossible to predict the future, but I am convinced that the best way to predict it is to create it”.

According to GlobalData, by 2030, global security revenues will have nearly $238bn. Revenues are expected to grow at a CAGR of 6.4% between 2019 and 2030. (*)

Telco’s have the right to play in the cyberspace, having a long history of providing secure and reliable network access both within their own organization or to businesses, this experience puts Telco’s in a strong position to meet organizations need for security as they look forward to incorporating more cloud- based solutions and services.

Top management frequently challenges the profitability of B2B units in telco’s, which in general run lower compared to customer-based business due to the levels of customization, complex purchasers, and the low margin as a result of competition in IT business. In order to build a strong B2B business, it it’s recommended for executives to accept the long run investment payback.

To get ahead in this rapidly growing market of security and cloud services, Telco’s are required to prioritize the B2B  opportunity and embrace three essential capabilities:

  • Understanding the customer’s need and answering it in short period of time. It is important for Telco’s to efficiently assess the requirement of the business and create packages based on its underlying need.
  • Adding new security services to the core business. A selective addition of new security growth domains that are close to the core business is beneficial to start building the portfolio of businesses with high ROI and low investment over a 6-month period. This will often require finding partners equipped with the capabilities to deliver such services.
  • Industrializing the product portfolio with a scalable and modular set of offers. Investing in modular solutions to avoid the temptation to systematically develop bespoke solutions. This will help addressing the needs of small and medium customers with standard converged bundles.

At Telefónica we understand that your organization must meet customer demands for cyber security and cloud solutions with a comprehensive portfolio. We know that choosing the right security partner is critical for success.

As a Telco, we understand the needs of our partners and can help guide you in implementing cyber security and cloud solutions that are tailored-made for your customers’ needs. We share the same DNA and timing, and we have gone through the same steps they will follow if willing to enter the cybersecurity market. They will learn from our successes, but even more importantly, from our failures.

To conclude, in order for Telco’s to create this rapid customized go to market model and plan a rapid ROI (Return on investment), it is in their favor to partner with telco’s providing cybersecurity under white label model since most of them faced similar problems and managed to overcome the difficulties which gave them an insight on how to modify their offerings in order to deliver highly effective products and services to SME as well as large enterprises.


If you want to receive guidance on cybersecurity for Telco companies, CONTACT US.

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