Telco titans and channel GTM – executive summary

An industry in need of transformation

The global telco industry is at a pivotal juncture, with telcos facing pressure to evolve from legacy service providers into dynamic tech companies (techcos). The transformation is driven by the need to address stagnant growth in traditional telco services and capitalize on the burgeoning opportunities in IT services, advanced connectivity and ecosystem-driven business models.

Telco titans dominate the global market

The global telco market is dominated by a handful of giants, with US telcos (Verizon, AT&T and T-Mobile US) and Chinese telcos (China Mobile and China Telecom) leading telco services revenue rankings. The telco titans collectively generated 56% of all telco services revenue in 2024, with North America (NAM) and Asia Pacific (APAC) holding the largest shares. Yet the telco titans’ annual growth remains flat at just 1% year on year, signaling the urgent need for better innovation and GTM approaches.

Regional GTM strategies can be a world apart

GTM strategies also vary by region, reflecting diverse market dynamics and partner ecosystems.

• North America has a focus on value-added resellers (VARs), technology services distributors (TSDs), advisors and strategic (GSI) alliances.
• EMEA emphasizes mobile virtual network operators (MVNOs), wholesalers and systems integrators (SIs).
• APAC relies on retailers, franchisees, internal business units and tech alliances.
• LATAM prioritizes local Internet service providers (ISPs), value-added distributors (VADs) and strategic GSI partners.

Telcos are leveraging a variety of routes to market, which help enhance service delivery, expand their reach and foster innovation through strategic partnerships.

Legacy telco letdown versus IT services success models

Legacy telco services, such as voice, cable and DSL, continue to hinder overall market growth. While modern technologies such as fiber and fixed wireless access (FWA) show promise, they remain tempered in the overall revenue mix. Legacy tech, such as cable, DSL and fixed voice, accounted for 51% of fixed telco services revenue, as the industry tries to pivot to advanced, higher growth connectivity solutions to unlock future growth.

IT services (up 7% year on year in 2024) are consistently growing at a faster rate than telco services (up 1% year on year). This disparity underscores the urgency for telcos to adopt IT-like GTM models, including ecosystem partnerships, co-sell strategies and platform-based approaches.

Adopting a “telco to techco with partnerco” growth framework

To achieve success similar to big tech and transform into techcos, telcos must fully embrace and expand their partner ecosystems (partnercos). Traditional telco models rely more on direct sales, basic partner programs and subscription-based revenue. In contrast, techco models emphasize combining advanced connectivity services, such as FWA, private 5G and edge computing, with high-growth cybersecurity, cloud services, XaaS, managed services and AI/ML solutions.

Revenue models must also shift from subscription contracts to usage- and consumption-based approaches. Partner programs need to evolve to value-based, with higher use of co-development/ marketing /selling initiatives and tailored enablement resources. GTM strategies must focus on ecosystem partnerships, marketplaces and API integrations, allowing telcos to expand their reach and foster innovation.

By tailoring strategies to regional dynamics and fostering robust partnerships, telcos can overcome legacy constraints and solidify their positions as leading techcos.