Why Telcos Cannot Become Tech Companies (Analyst Angle)
RCR Wireless News, Monday, November 17th, 2025
It's an idea that sounds right - but is it possible?
Every few years, another telecom strategy presentation declares that 'our goal is to become a tech company.' The phrase sounds inspiring. It signals ambition, innovation, and a desire to escape regulatory gravity. But it is wrong and potentially value-destructive.
The difference between a telecom company and a technology company is not culture, capital, or leadership. It is physics. Telecom assets behave differently from software assets. They obey different cost curves, scale laws, and risk profiles. When you ignore these differences, you get strategies that sound visionary but destroy value.