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      As featured on BusinessMirror:  Telco to techco

       

      The term "techco" is a relatively new buzzword that has emerged to describe the transformation of traditional telecommunications companies (telcos) into more technology-focused and innovative businesses. This transformation is driven by the rapid pace of technological change and the increasing demand for digital services.

      The evolution of telcos into techcos reflects the convergence of telecommunications and technology. As the digital world becomes increasingly interconnected and reliant on data, techcos are poised to play a crucial role in shaping the future of communication and innovation. Today’s telcos recognize that to survive and thrive in the digital age, they must be built around their customers, with the ability to respond and adapt to ever-changing needs continuously.

       

      Signals of Change

       

      Telco service revenue has stabilized over recent years and is now moving towards a phase of strategic transformation. Network operators are leveraging their existing infrastructure while introducing innovative, value-added offerings that command premium pricing, thereby creating multiple new drivers of revenue growth that extend beyond saturated consumer markets.

      Such strategic initiatives reflect an industry-wide recognition that future growth is driven by innovation, diversification, and an expanded role within the digital ecosystem. With this shift, telcos are increasingly focusing on the business-to-business (B2B) segment as a key driver for revenue growth. In line with these developments, the following factors below represent key drivers of change shaping the evolution of telco business models:

      • Telcos should continually invest to avoid becoming outdated.
      • Business-to-consumer (B2C) customers seek fast and reliable connectivity, personalized services, and an excellent customer experience.
      • B2B customers are looking for secure, scalable telco solutions with integrated services and personalized support.
      • Traditional telco models are focused on infrastructure and network operations, with less emphasis on customer experience.
      • Telcos’ traditional business models are no longer fit for purpose to address the new digital opportunities.

       

      Key characteristics of a techco

       

      Techcos are the modern evolution of traditional telecommunications companies that have embraced the digital landscape and beyond. They prioritize innovation, digital transformation, and customer experience. Techcos are characterized by their focus on:

      • Client centricity
      • Digital experience
      • Automation
      • Data utilization

      In the pursuit of techco status, recognizing ambition alone won't necessarily suffice. A strategic paradigm shift is imperative, necessitating a holistic restructuring of the telco company's operational landscape.

       

      In the Philippine context

       

      With internet penetration and social media usage among the highest globally, the Philippines presents a vast and highly engaged market for digital services. This shift from a traditional telco to a versatile, technology-focused techco is a critical necessity.

      This market dynamic compels local telco providers to look beyond their core role as connectivity providers. However, these ventures rely on processing massive amounts of customer data and deploying advanced digital platforms like AI. While these capabilities enable efficiency and hyper-personalization, their success ultimately depends on consumer trust.

      As the KPMG report titled Telco to techco highlights, the public often remains cautious about powerful, automated digital systems. For the Philippine digital economy to continue its growth, telcos must address concerns around data handling and platform reliability to drive widespread adoption of their new digital financial and commercial services.

      The challenge for Philippine telcos is to continue moving up the value chain, building on their progress beyond basic connectivity to higher-value offerings such as digital media, cloud solutions, and specialized business services. This requires further strengthening their role as trusted service enablers, leveraging scale and customer relationships to support sustainable growth beyond traditional telecom boundaries.
      Frits Gerald M. Enriquez

      Technology, Media and Telecommunications Sector Deputy Head

      R.G. Manabat & Co.

      fge

       

      Ultimately, the future growth of the country’s leading digital carriers lie in their ability to establish an uncompromising standard of digital trust. By strengthening governance, ethical practices, and risk management frameworks, telcos can support the development of secure, reliable, and widely trusted digital services within the Philippine digital ecosystem.

      This excerpt was taken from the KPMG Thought Leadership publication “Telco to techo”.

      © 2026 R.G. Manabat & Co., a Philippine partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.

      For more information, you may reach out through ph-kpmgmla@kpmg.com, social media or visit www.home.kpmg/ph.

      This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity. The views and opinions expressed herein are those of the author and do not necessarily represent KPMG International or R.G. Manabat & Co.