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Telcos Evolving in a SASE-driven World

Oct 14 2024

This blog is part of the ongoing “I&O Perspectives” series, which features insights from industry experts about the impact of current threats, networking, and other cybersecurity trends.

In the previous blogs of this series, we explored how the internet has evolved into a primary channel for corporate business traffic and how secure access service edge (SASE) has become the foundational security pillar of this new framework.

Private backbones and infrastructures, in general, have partially lost their capacity to capture customers in the long term. Investments in internet networks are now viewed as part of a commoditized business model This article will look into telecom providers’ strategies as they transform and create high-value offerings in this new landscape.

Over The Top (OTT)–The elephant in the room

Telecommunications operators face significant challenges in the consumer market, with user loyalty becoming increasingly unpredictable. Firstly, in many countries, markets have liberalized after being regulated with prices set by the governments and, in many countries, a single provider with no competition. Secondly, users are gravitating toward over-the-top (OTT) content platforms delivered over the internet, with no dependence on the underlying network provider. While telcos used to offer content and took their share of revenue, they are now often reduced to providing low-cost internet access.

But that’s where the comparison ends. Enterprise needs and use cases have very little in common with consumers. The security requirements that were met by private backbones remain critical for business, as they cannot risk compromising customer data or business operations. The sensitivity of consumer applications is much lower. And the impact of a virus, for example, on a consumer device, is minimal compared to a ransomware attack in a factory or a bank. Moreover consumers do not operate their own applications, while corporations have made IT not only a means but, more often, a way to develop new business models and differentiate from their competitors. Additionally, enterprises must meet these operational needs with compliance requirements, further shaping service design and delivery.

Beyond the pipe

Besides the long-haul networks, telecom providers have helped their corporate customers with various value-added services. They propelled their telecom business higher in the value chain by developing their own capabilities or acquiring network integrators that design, deploy, and manage local area networks, Wi-Fi infrastructures, and perimeter security like firewalls and intrusion detection systems.

They also helped their customers get closer to the application, in the data centers, with load balancers, applications firewalls, proxies, storage, or embrace better user experience with telepresence. When private backbones started to be replaced with