Bridging the Gap: How Telecom Providers are Driving Experience as a Service with 5G and IoT

Authored by Praveen Kumar Cherukuru - Senior Manager, Engineering, WaveMaker, Inc.

As customer expectations for personalized, seamless, and connected experiences continue to rise, Telcos are gearing up to implement this transformation through "Experience as a Service" (XaaS).

But how effectively can telcos drive this change?
They need to transition from a product-centric approach to one that is experience-driven. Additionally, they must embrace 5G and Internet of Things (IoT) to successfully deliver Experience as a Service.

From Product-centric to Experience-driven

Historically, telecommunications companies (telcos) have focused on network performance, coverage, and cost efficiency while providing reliable connectivity services. However, as consumer expectations evolve and digital ecosystems expand, the emphasis has shifted to creating seamless, personalized experiences across various touchpoints. Modern customers expect telcos to deliver connectivity and also offer proactive solutions with value-added services that enhance their digital lives.

To achieve this, telcos must rethink the customer journey, transforming interactions across all touchpoints to provide a consistent and seamless experience. Leveraging AI-driven data enables telecom companies to create tailored offers, predict service disruptions, and provide real-time assistance, ultimately enhancing customer loyalty and satisfaction.

By forming partnerships with over-the-top (OTT) service providers, cloud platforms, and IoT ecosystems, telcos can position themselves as enablers of digital transformation. This evolution allows them to transcend their traditional role as mere connectivity providers and become orchestrators of comprehensive solutions. The shift from a product-centric to an experience-driven approach is no longer optional but a strategic imperative for carriers to remain competitive in the rapidly changing digital landscape.

Adopt 5G and IoT to Offer Experience as a Service

The combination of IoT and 5G is transforming telecommunications landscape, enabling carriers to offer XaaS that goes beyond conventional connectivity. 5G provides a robust foundation for IoT-driven solutions, meeting industry-specific needs with ultra-low latency, high-speed data transfer, and massive device connectivity.

Use cases such as predictive maintenance in manufacturing, real-time patient monitoring in healthcare, and intelligent traffic management in smart cities illustrate this shift, allowing businesses to focus on outcomes rather than infrastructure.

Telecom companies are positioned as strategic partners in digital transformation by offering scalable, secure, and customizable experiences. Through 5G-powered IoT ecosystems, telecom companies can deliver end-to-end solutions that include connectivity, edge computing, and AI-driven analytics, all integrated into a cohesive, holistic experience.

Challenges & Solutions

Providing exceptional experiences comes with challenges such as maintaining brand consistency across touchpoints, ensuring data protection and compliance, and integrating with legacy systems. To overcome these, businesses can leverage low-code platforms for agility, cloud-native designs for scalability, and AI-driven automation for efficiency. By creating a seamless digital ecosystem where data flows securely and freely, companies can respond quickly to customer needs while maintaining a cohesive and compliant experience.

Firms that prioritize personalization and connectivity will excel in an experience-driven market characterized by high expectations.

Strategies for Telecom Providers to Succeed in XaaS

To thrive in the XaaS era, telecom companies must transition from network-focused operations to delivering seamless, personalized digital experiences. Here are several strategies these companies can implement:

• Building Hyper-Personalization with AI and Data Analytics: Utilize AI insights to offer services tailored to customer behavior. Implement predictive analytics to enhance services and proactively address potential issues.
• Creating Customer Experiences Across Channels: Ensure that chatbots, web portals, mobile apps, and in-store interactions provide consistent engagement.
• Offering Bundled and Outcome-Based Services: Go beyond just connectivity by integrating cloud, IoT, and 5G services into comprehensive solutions. Provide industry-specific experiences, such as smart healthcare, automated retail, and connected manufacturing.
• Customizing Services via Network APIs: Allow businesses to modify network performance using programmable APIs. Offer Network as a Service (NaaS) to instantly allocate bandwidth and manage latency.
• Promoting Collaboration in the Digital Environment: Work together with cloud providers, OTT service providers, and AI companies to create innovative solutions. Facilitate seamless integration with IoT, entertainment, and financial systems.
• Automating Processes Using AI and Low Code Platforms: Leverage AI-powered automation for intelligent network management and customer support. Use low code development to accelerate the delivery of customized services.

By implementing these strategies, telecom providers can effectively navigate the XaaS landscape and enhance the customer experience.

Measuring the Success of an Experience-Driven Model

Telecom companies must move beyond traditional metrics like ARPU and network uptime to embrace an experience-driven approach. Success should be measured through customer-centric and business impact indicators that highlight the value of XaaS. Key metrics include NPS, CSAT, and churn rate for customer satisfaction, AI-driven data for engagement and personalization, and operational efficiency gains from AI and automation. Revenue growth through digital services, predictive maintenance, and ecosystem expansion—such as 5G/IoT solutions and partnerships—also play a critical role.
These KPIs help the telecom providers to measure where they stand/transform from a product-centric model to an experience-driven model.

Conclusion

Telcos are at a critical juncture where they must evolve from being mere service providers to becoming experience enhancers. This shift is essential to meet the growing expectations of consumers who demand seamless, integrated experiences in all aspects of their lives.

To achieve this transformation, companies must harness the power of emerging technologies, particularly the synergy between 5G and the IoT. 5G technology offers faster data transmission speeds, lower latency, and increased connectivity, while IoT enables a network of interconnected devices that can collect and exchange data in real-time and by utilizing network APIs, telecom companies can create innovative applications and services that deliver value-driven experiences across various sectors, including healthcare, smart cities, and automotive industries.