Saturday, January 6, 2024

Is "Telco to Techco" Ultimately Only the Lastest in a Long Line of "Rebranding" Efforts?

Many connectivity service providers now talk about becoming a techco. That assertion can have several plausible meanings. 


“What we do” could change. Among the most-sweeping possible interpretations is that “telcos” provide “connectivity” but “techcos” supply platforms or applications. In an advanced version, techcos are themselves owners of apps and services running on their networks. 


“How we do it” is an alternative. An arguably less-challenging understanding is that “techcos” are firms that are innovative and agile or customer-focused; embracing risk-taking and experimentation. 


A related shift might have telcos becoming “ecosystem orchestrators” that assemble partners and functions to create a “one stop shop” for customers. In this vein, perhaps techcos are noted for an embrace of open systems. 


What all such understandings arguably include, though, is a shift from basic connectivity to “additional services, apps or value” beyond the core connectivity function. 


Some will remain skeptical about whether telcos really can become techcos in that sense. And some might argue that, though laudable, the “techco” emphasis is really only the latest in a long series of marketing-related efforts to change perceptions about “telcos.”


If you have been in the “telecom” industry long enough, you have seen many efforts to shift language from a “traditional” to a “new” term. 


Traditional term

Preferred new term

Telecommunications company

Digital services company

Phone company

Communications company

Carrier

Platform

Incumbent

Challenger

Old economy

New economy

Brick-and-mortar

Digital-first

Slow-moving

Agile

Traditional

Disruptive

Outdated

Innovative

Boring

Exciting

Telecommunications company

Digital services company

Phone company

Communications company

Carrier

Platform

Incumbent

Disruptor

Old guard

New guard

Brick-and-mortar

Digital-first

Slow-moving

Agile

Traditional

Innovative

Telephone company

Media company

Network operator

Digital enabler

Service provider

Platform provider

Infrastructure company

Solutions company

Utility

Ecosystem player

Telco

Techco

      

“Telco to techco” is merely the latest iteration.


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