From Pipe to Protector: Why Telcos Must Evolve Beyond Connectivity

Today, where every home, business, and critical infrastructure relies on seamless digital access, telcos face a defining moment: connectivity alone is no longer enough to drive growth. Cybersecurity is becoming a defining part of how telcos grow and stay relevant. In this article, BlackDice CEO Paul Hague, explores how telcos can move from commoditised providers to trusted cyber guardians – and why they must act now.

Connectivity has plateaued

“For decades, telcos have competed on three pillars: coverage, capacity, and cost. But that race is reaching its limits,” begins Paul. “But with network parity increasing and margins thinning, telcos are struggling to differentiate”.

Consider the facts:

• Globally, the average household now has over 25 connected devices (Statista)
• Small businesses – which make up 99% of all firms in the UK (FSB) – increasingly rely on remote operations
• 94% of consumers expect digital services to include built-in security (EY Global Consumer Privacy Survey)

The threat has shifted to the edge

Today’s cyber threats don’t just target data centres. They’re going after:

• Home routers and smart TVs
• IoT devices and wearables
• Remote employee endpoints
• SMBs running on consumer-grade networks

In 2023, IoT malware attacks alone increased by 77% (SonicWall Cyber Threat Report). The threat surface is expanding – and telcos, by design, are positioned right at the edge.

Cybersecurity: a commercial growth driver

This isn’t just about reducing risk – it’s a business opportunity.

A recent Accenture survey found that 78% of consumers would switch providers for better digital security features. The market for consumer cybersecurity services is projected to reach $23.2 billion by 2027 (Statista).

Cyber is no longer a support function. It’s a differentiator. From parental controls to small business protection plans, telcos can monetise digital trust – if they lead with it.

AI is now a non-negotiable

Cyber threats evolve in seconds. Human response alone can’t scale to meet them. This is where AI comes in. AI-powered security can:

• Detect anomalies in real time
• Automate threat response at the network level
• Reduce operational burden on security teams
• Predict and prevent breaches before they occur

Related content – Simply Connected podcast

In this episode Paul Hague, CEO of BlackDice Cyber joins John Barlow on his ‘Simply Connected’ podcast, to discuss the evolution of telecommunications providers (telcos) from mere connectivity providers to comprehensive service providers:
– How connectivity has become a utility over the years.
– Telcos MUST find ways to differentiate in a commoditised market.
– How Telcos deploying value-added services can help reduce customer churn.
– Telcos need to focus on keeping services simple for users

Trust is now the brand. Security is the promise.

When a breach occurs, customers don’t blame the hacker – they blame their provider. For telcos, the reputational stakes are high.

This means going beyond compliance. Telcos must treat digital safety as part of the customer experience, from onboarding to renewal.

What telcos can do today

Transformation doesn’t happen overnight. But the shift starts with clear, practical steps:

1. Audit your cybersecurity offering – Are you securing endpoints, or just the pipe?
2. Explore innovation through partnership – Where can third-party providers accelerate capability?
3. Reframe cyber as a product – Would your commercial team confidently pitch it?
4. Map a trust-based roadmap – Align offerings to life stages and pain points
5. Upskill cross-functional teams – Ensure product, marketing, and support speak the same security language

The mandate is clear

“The old telco formula – speed, price, coverage – no longer delivers sustained value”, says Paul. “Consumers and businesses expect more. Regulators demand more. The risks require more.”

Telcos that embrace their role as cyber guardians won’t just stay relevant – they’ll lead the next wave of transformation in the digital economy.

Key takeaways

• Telcos are uniquely positioned to protect users at the network edge
• Trust and protection are emerging as key differentiators
• AI is critical to scale real-time, proactive threat defence
• Cybersecurity is a customer expectation – and a commercial opportunity

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