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Beyond Revenue: Why Telecom's Future Depends on Profitability

Publisher IDC
Published Nov 07, 2025
Length 6 Pages
SKU # IDC20539975

Description

Amdocs Executive Analyst Summit 2025: AI, Agents, and the Market of One (IDC #lcUS53847425, October 2025)Investigating a New Revenue Frontier for European Telcos: AI Factories (IDC #EUR153773025, September 2025)The Role of AI in Mobile Monetization (IDC #EUR153701425, August 2025)AI-Powered Transformation and Use Cases for the Telco and Vendor Ecosystem in the META Region (IDC #META52916525, July 2025)Telecom Operators Supporting AI as a Service to Drive Business Transformation (IDC #US53341325, May 2025)This IDC Market Note reflects on telecom operators' whole business and argues that they must shift focus from revenue growth (ARPU) to profitability (AMPU) to thrive in a saturated, commoditized market. Success hinges on granular margin visibility, customer-centric value creation, strategic use of AI, and ecosystem partnerships. Operators that evolve beyond selling connectivity to deliver differentiated outcomes and collaborating across the value chain will secure sustainable profits and relevance, while those clinging to legacy models risk margin erosion and irrelevance. "The transformation from telco to techco should not focus solely on top-line growth, particularly if it erodes EBITDA margins. Instead, the shift must deliver higher-margin outcomes by simplifying operations, eliminating duplication, and leveraging automation to drive efficiency from within. Only then can telcos become true digital partners, able to share these capabilities and support their enterprise clients on their own digital transformation journeys," said Masarra Mohamed, senior research analyst, IDC.

Table of Contents

6 Pages

Executive Snapshot

In This Market Note

IDC's Point of View

From ARPU to AMPU: A Necessary Shift in Focus

Beyond Connectivity: Monetization Through Value Creation

AI as a Catalyst for Profit Growth

Profit Through Partnerships and Ecosystems

Final Thoughts

Learn More

Related Research

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