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Telco to Techco: The Rising Role of Value-Added Services in Telecom

The telecom industry is in the midst of one of its most significant transformations. As the demand for faster, smarter, and more efficient connectivity grows, traditional telecom companies are being challenged to innovate beyond the basics of voice and data services. The question on everyone’s mind: can telcos successfully evolve into Techcos? Telco to Techco: what it means and why it matters?

This shift, from Telco to Techco, is not just about a change in branding. The term was actively used at the MWC 2025 panel in Barcelona and later at America Digital 2025 in Chile which the Aipix representatives attended to share insights. It’s a profound reimagining of what telecoms can do, how they engage with their customers, and how they generate new streams of revenue. The journey involves embracing new technologies, business models, and, most importantly, value-added services for telecom. These services provide a crucial lever for telcos to redefine their roles in the digital age.

Why Telcos Must Transform Now

telco to techco: what it means

The world of telecom is no longer just about providing reliable voice and internet services. As the digital ecosystem expands, telecom operators are seeing traditional business models erode. The rise of over-the-top (OTT) services, global tech giants, and consumer demand for integrated digital experiences are shifting the industry’s center of gravity. Telcos face increasing pressure to do more. Not just to build the infrastructure but also provide the platforms that drive value.

The statistics highlight a clear picture:

  • Global telecom revenues have plateaued, with some markets showing growth rates below 1% annually (GSMA, 2024).
  • Telecom players are in fierce competition not just with each other, but with the likes of Amazon, Google, and Meta. That corporations are already continuously expanding their reach into the telecom space.
  • The transition to 5G networks promises vast potential but demands enormous investments — capital that might not yield quick returns unless monetized creatively.

In response, telcos are being forced to evolve their service offerings, tapping into digital services that extend beyond traditional connectivity. The time for transformation is now. And at the core of this evolution is the push toward value-added services that go beyond just the basics.

What Is a Techco, Really?

A Techco, as the term implies, isn’t just a telco with better technology. It represents a cultural and strategic shift in the telecom space. In many ways, becoming a Techco means rethinking the entire value chain, from network deployment to customer interaction, to service delivery.

Instead of simply providing connectivity, Techcos evolve into holistic digital platforms that cater to an array of needs. The most forward-thinking telcos are moving toward platform-based models, enabling seamless integration across a variety of services, from cloud storage and cybersecurity to artificial intelligence and video services.

This transformation is not an abstract concept; it’s about embracing data, intelligence, and automation. For telcos, becoming a Techco requires:

  • Rethinking business models from selling simple bandwidth to delivering integrated digital services.
  • Adopting a customer-first mentality, where the focus shifts from infrastructure uptime to creating delightful, frictionless customer experiences.
  • Building ecosystems that foster innovation — not just internally but by collaborating with third-party developers, content providers, and even competitors.

This shift isn’t just necessary — it’s critical. And value-added services lie at the heart of it.

Value-Added Services: The Growth Engine

The need for value-added services for telecom has never been more pronounced. These services represent new revenue streamsincreased customer loyalty, and differentiation from the competition. In today’s competitive landscape, where cost-cutting is no longer enough to stand out, offering something beyond standard connectivity is what can make or break a telecom provider’s success.

Global demand for these services is increasing rapidly. Research shows that:

  • Value-added services in telecom are projected to generate over $350 billion by 2027 (Statista).
  • Cloud-based servicesAI-powered solutions, and cybersecurity are among the fastest-growing segments.
  • Video surveillance and IoT are rapidly gaining traction as essential add-ons for both residential and business customers.

These figures reflect a massive market opportunity — one that telcos must capitalize on to stay relevant. The modern consumer is looking for convenience, security, and digitalization at every turn. Video surveillanceAI-driven analytics, remote access control and cloud storage are no longer niche offerings — they’re essential for businesses and homes alike.

High-Growth Value-Added Service Categories:

  • Cloud Video Surveillance. Security is paramount in today’s digital-first world.
  • Managed Security Services. Safeguarding data and privacy is top-of-mind for consumers.
  • IoT and Smart Home Solutions. Telecom providers can offer integrated systems for connected living.
  • Cloud Storage and Backup. Businesses and consumers alike require scalable storage solutions.
  • AI-Driven Analytics and Automation. The future of customer interaction and service management.

These services can serve as the foundation for transforming a traditional telco into a Techco, driving long-term growth and diversification in the process.

telco to techco for customer loyalty

Aipix: Empowering Telcos to Techco Shift with Cloud Video Surveillance

At Aipix, we understand the critical role that value-added services can play in this transformation. Our cloud video surveillance solutions are designed to seamlessly integrate with telecom offerings, allowing telcos to offer high-demand services with minimal overhead.

Aipix provides:

  • AI-powered analytics, including motion detection and facial recognition for advanced security solutions.
  • Customizable white-label services that align with your brand.
  • Flexible business models, from subscription-based services to on-demand offerings.
  • Easy integration with telecom billing systems, enabling simple monetization for your business (due to open API).

For telecom providers looking to diversify and build deeper relationships with their customers, Aipix offers the tools to grow beyond traditional services, positioning you as a forward-thinking, customer-centric Techco.

The Opportunity Is Now

Telcos who want to thrive in the future must recognize that transformation is not a luxury — it’s a necessity. The shift from Telco to Techco is about leveraging technology to build deeper, more valuable relationships with customers. Value-added services are the foundation of this transition, enabling telcos to expand their portfolio, increase revenue, and stay competitive in an ever-changing market.

The opportunity is now, and companies like Aipix are here to help telecom operators seamlessly integrate innovative services into their offerings, ensuring growth and relevance for the digital age.

Start your transformation today. Contact Aipix to learn more about how our cloud video surveillance solutions can power your next-generation telecom services.

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