Telcos
6 MINUTE READ
APR 2026
Connectivity is the floor. Not the ceiling.

Most telcos are sitting on a trust advantage they have no idea how to use. C-suite executives across the globe already rely on their communications service providers for uptime, reliability, and basic connectivity. But that trust isn't turning into revenue. Research from IBM and GSMA Intelligence shows SMEs would pay 34% more per month for integrated, outcome-based digital bundles. The gap isn't technology. It's interpretation. And that's where we come in.

34%

More per month SMEs would pay for turnkey outcome-based digital bundles from their telco provider.

82%

Of SMEs suffered a cyber incident in the past year. Most aren't buying security from their telco.

83%

Of SMEs say AI-enabled SLA assurance would increase trust and adoption of their provider's services.

79%

Say proactive, real-time visibility into service performance would directly increase trust and spend.

The problem isn't your portfolio. It's your positioning.C-suite executives need results they can see, not contracts they can't interpret. Right now, CSPs anticipate that half of their SME revenue in 2028 will still come from mobile connectivity. That's a problem. The businesses you serve are already using AI in daily operations (78% of them), and 93% expect that usage to grow significantly in three years. They want fewer disconnected systems, less friction, and partners who take accountability for outcomes. Here's the thing: that's exactly the role a well-positioned telco can play.
Three areas where telcos can lead right now
Based on data from 800 SMEs and 200 telco providers across 22 countries, the opportunity is clear. But it's concentrated in three specific areas C-suite executives are actively looking to address.

Integration over addition

SMEs aren't asking for more standalone tools. They want their existing systems to work together, with clear ROI and less manual effort. Only 38% of CSPs currently use AI for integration and workflow automation. That's the exact capability SMEs value most. C-suite executives who understand this gap can move fast to close it, acting as the intelligent layer that connects CRM, compliance, security, and operations into one coherent environment.

SLAs that show their work

Nearly half of SMEs say they lack clear visibility into the business value of their current SLA. And 51% say limited real-time data erodes their confidence in their provider. The fix isn't a better contract. It's a live operational platform. Think real-time dashboards, predictive fault detection, and performance translated into business impact. When C-suite executives can see avoided downtime and protected transactions, reliability becomes something worth paying more for.

Security as a managed outcome

SMEs are sourcing security from IT and cloud providers at nearly twice the rate they turn to their telco. Not because the telco can't do it, but because the offer doesn't feel like ownership. SMEs would pay 30% more for AI-assisted threat detection, 24x7 monitoring, and proven incident reduction. The shift is from selling a security add-on to operating security end-to-end. C-suite executives looking to grow revenue in this space need to lead with accountability, not features.

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50%

Mobile connectivity revenue mix

Right now, CSPs anticipate that half of their SME revenue in 2028 will still come from mobile connectivity. The shift to higher-value services is critical for future revenue stability.

93%

Expected AI adoption growth

Ninety-three percent of businesses expect their usage of AI in daily operations to grow significantly in three years. Telcos who position themselves as AI partners have a unique market opportunity.

38%

Current AI use for integration

Only 38% of CSPs currently use AI for integration and workflow automation, the exact capabilities SMEs value most. Closing this gap is the fastest path to premium tier revenue.

Understand the operating model, not just the contract

The constraint in the SME market isn't technology. It's interpretation. C-suite executives need to map which business processes depend on digital services, what downtime actually costs, and where compliance exposure drives willingness to pay. Use network data and service interactions to surface patterns before they become problems.

Price for outcomes, not volume

SMEs are clear about what they'll spend more on: reduced manual effort, visible performance, and shared accountability. That means moving away from volume-based models toward value-based pricing tied to risk reduction and operational results. Outcome-linked SLA tiers and success-based security pricing are good starting points.

Point your internal AI outward

CSPs already use AI, assurance, and automation to run their own networks. The next step is selectively externalizing those capabilities into SME offers. Security and compliance assurance are the fastest path to market. Integration and workflow orchestration follow, often through ecosystem partnerships where the telco retains outcome accountability without needing deep application expertise.

Questions C-suite executives ask us
These are the conversations we have most often with telecommunications leaders working through this shift.

Q: Why aren't SMEs adopting our digital services even when they trust us?

Trust and adoption are different problems. SMEs trust their telco for uptime and support. But they don't see their telco as the right partner for integrated IT, security, or workflow automation. That's a positioning problem, not a trust deficit. CSPs tend to overestimate cost sensitivity as the barrier and underestimate SME concern about operational disruption and AI reliability. Closing that perception gap is the starting point.

Q: How do we make SLAs a revenue driver rather than a legal formality?

Static SLAs don't create value in the eyes of a business owner trying to run operations. Real-time dashboards, proactive outage alerts, automated failover, and ROI translation turn an SLA into something C-suite executives can point to in a board meeting. 83% of SMEs say AI-enabled assurance would increase adoption. The technology is largely already there inside most CSP operations. The gap is making it visible to the customer.

Q: Why are SMEs buying security from cloud providers instead of us?

Because IT and cloud providers sell security as a managed responsibility. CSPs have largely sold it as an optional feature. SMEs aren't looking for more tools. They want a partner who monitors continuously, responds quickly, and can prove the value. 41% of SMEs are already willing to pay more for built-in advanced security from their CSP. The offer just needs to match the expectation.

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