At FutureNet World, Rakuten Symphony EMEA SVP Faiq Khan joined representatives from Orange Business, BT International and TELUS on a keynote panel exploring how telcos can monetize the AI gold rush. In this article, he explores the real tension between tech deployment and monetization, and the broader conversation that took place at the show this week.
FutureNet World hosted a strong attendee mix in London this week, which led to productive conversations, especially around the continued push and pull of new tech rollout and revenue realties.
My top-level take: Telecom doesn’t have an AI problem, it has a monetization problem.
This was reinforced by the keynote panel I joined with telco leaders where two very different conversations were happening.
There is a genuine divergence in where top telecom operators are focusing. The approaches are not in conflict, but the paths chosen will define future opportunities.
I heard a lot of attention paid this week to tech. The wow factor of certain solutions, security considerations and what’s required to make inroads into the enterprise.
I believe there is full agreement that new tech paths remain important and essential. But I don’t think we are talking enough about a concrete view of how to monetize use cases differently than before.
Our experience at Rakuten Mobile seeing the strength of an ecosystem-based approach has made it obvious to us that the most significant future revenue driver hinges on the ability to optimize around customer loyalty and wallet share.
Yes, 6G is on the way and AI is accelerating. But neither of these address the survival question facing telecom: Can we keep customers and grow them?
Why wallet share matters
Those of us who fly frequently understand the power of loyalty. We’ll take flights at less convenient times or even for some reasonable price increase if we can do it with our preferred carrier where we have privileges, status and a loyalty record that is rewarded.
The same dynamic plays out in my daily life at home in the UAE. I use Careem and Ounass as my primary spending apps and I stay in those ecosystems because the accumulated value of being in them negates the attractiveness of other alternatives.
For connectivity, I’m quite happy with my mobile provider. But there isn’t much stopping me from jumping ship if a better offer comes along.
We have to solve for wallet share realities at scale. Even the well-positioned incumbents recognize this. In private conversations offstage, multiple operator representatives approached me about Rakuten’s ecosystem experience in Japan.
That tells me there is receptiveness even if public tech conversations overshadow the monetization debate.
Satisfaction, retention and loyalty are not the same
I’ve been in telecom long enough to recognize the familiar pattern of treating customer satisfaction, retention and loyalty as equal or interchangeable measures.
This is a mistake.
Satisfaction means a customer is content. Retention means they haven’t left (yet). Loyalty is what will make them choose to actively stay and spend more time with you.
My mobile provider has my retention, sometimes my satisfaction, but not my loyalty. There is nothing to stop me from leaving and I do not think about them when I want to spend more, whether for personal or business use.
It’s the difference between transactional and relationship-driven exchanges.
As opposed to the airline model, there is no significant missed value if my loyalty to my mobile provider breaks. Whereas, for many airlines, their loyalty and points programs are now their primary revenue drivers, above and beyond what outsiders may view as the “core” business of ferrying passengers from one destination to another.
We shouldn’t simply admire this model from afar. Telcos have the subscriber base, billing relationship and daily touchpoints to build a similar approach. The glaring challenge is not some magical missing asset or lack of the most modern tech; it is the deliberate choice to organize around transactional metrics instead of lifetime customer value.
Exploring the execution gap
As I noted earlier, there is strong receptivity to change. The issue is in the execution. Eventually, hesitation sets in as deliberation slows and decisions are deferred.
There could be generational bias at play. Gen X and Y leadership inherently carry training and risk frameworks from previous eras that materialize at the execution stage.
That’s not to say the risk-taker mindset is completely absent among these generations. There are several shining examples of scrappy telcos of all sizes and ages that have executed while taking calculated risks. Still, a certain comfort level exists to continue investing to optimize what we always have.
One operator I spoke with was fully on board with undertaking an ambitious transformation strategy. There was just one problem: they said it was not an option to compromise on network KPIs—even if they had no direct connection to customer experience, loyalty or revenue.
Consider that network directors are still measured based on OpenSignal and Ookla performance scores.
Yet, all the network quality and performance awards in the world don’t actually correlate to being the highest revenue generator or best monetizer of AI or cloud infrastructure. They are not the reason most subscribers join or stay.
Yes, KPIs are important. But the framework itself is misaligned with the business outcomes being pursued.
Time to make a decision
The operators that move decisively on monetization and customer loyalty are building exactly the foundation that 6G will require: open, software-driven, customer oriented.
Those that do not move deliberately will face consolidation threats.
Don’t want to wait for 6G or the next AI cycle to make progress? Message me or leave a comment and let’s discuss the unique advantages your business has to start solving the monetization challenge today with existing assets.
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