TL;DR
- Telco revenue based on connectivity is declining due to commoditization
- AI is shifting value from transport to intelligence to outcomes
- 84% of enterprises are increasing voice AI investment; 67% see it as foundational
- Telcos can win by owning real-time orchestration of conversations
- Platforms like CAIRO by NetSapiens enable this shift without replacing core infrastructure
Table of Contents
Why is the connectivity model no longer enough?
The connectivity model is no longer enough because connectivity has become a commodity with declining margins.
Telecom operators face:
- High capital expenditure
- Regulatory pressure
- Increased competition
According to McKinsey, telecom returns have significantly lagged other industries over the past two decades .
What does “commodity” mean in telecom?
A commodity is a service that is widely available and difficult to differentiate, leading to price competition.
Why does this matter?
If telecom providers continue selling only:
- Minutes
- Bandwidth
- Connectivity
They compete primarily on price—not value.
How is AI shifting where value is created in telecom?
AI is shifting value from transporting communications to orchestrating intelligence within them.
The CPaaS Acceleration Alliance defines this clearly:
- Old value: carrying calls
- New value: understanding and acting on conversations
Supporting data from Deepgram:
- 84% of organizations plan to increase voice AI investment
- 67% consider voice AI foundational to strategy
What does “orchestration” mean?
Orchestration is the coordination of data, AI models, and workflows to produce a specific outcome.
Transport vs Intelligence
| Model | Value Driver | Revenue Bases | Differentiation |
|---|---|---|---|
| Transport | Moving Calls | Minutes/Usage | Network Quality |
| Intelligence | Understanding with action | Outcomes | AI, Data, Workflows |
Why is this shift happening now?
Because AI can transcribe conversations in real time, detect intent and sentiment, and trigger automated actions.
Why do telcos still have a strategic advantage?
Telcos still have an advantage because they control real-time communication, identity, and network-level data.
Key assets telcos already own:
- Direct access to live voice interactions
- Trusted customer relationships
- Network-level identity and quality control
What is “network-level intelligence”?
Network-level intelligence means embedding AI directly into the communication layer (calls, routing, signaling), not just applications.
Example capabilities:
- Real-time translation during calls
- Fraud detection in live interactions
- AI copilots assisting conversations
Why is this important?
These capabilities cannot be easily replicated outside the network layer.
What does “Intelligent Engagement” mean?
Intelligent Engagement means using AI to turn conversations into real-time decisions and actions. It is the integration of communications, AI, and workflows to produce measurable outcomes
How is it different from UCaaS?
| Capability | UCaaS | Intelligent Engagement |
|---|---|---|
| Purpose | Enable Communication | Drive Outcomes |
| Intelligence | Limited | Embedded AI |
| Measurement | Usage, uptime | Conversation, resolution |
| Role | Tool | Execution Platform |
Why does it matter?
Because businesses now measure conversion rates, customer satisfaction, and revenue impact —not just usage.
What must telcos do to move up the value chain?
Telcos must move from infrastructure providers to AI-driven orchestration platforms.
- Embed AI into communications
- Integrate AI into voice and messaging
- Enable real-time understanding
- Own orchestration
- Control how conversations are routed and executed
- Connect AI to enterprise workflows
- Monetize outcomes instead of usage
- Charge for Conversions, Resolutions, and Customer outcomes
Why is this urgent?
Because if telcos do not move up the stack, hyperscalers and software platforms will capture the value.
Where does CAIRO by NetSapiens fit in this shift?
CAIRO by NetSapiens enables telcos to transition from connectivity to intelligent engagement by embedding AI directly into voice interactions.
What CAIRO by NetSapiens does:
- Turns conversations into actionable insights
- Enables automation within live calls
- Connects voice interactions to business workflows
Why is this important?
Because telcos need a way to:
- Add intelligence without replacing infrastructure
- Monetize AI-driven services quickly
Example outcomes enabled by CAIRO:
- Automated call handling and routing
- Real-time intent detection
- Workflow execution during conversations
The Bottom Line
Telcos must reinvent their role because value is no longer created by connecting people—it is created by understanding and acting on interactions.
The shift is clear:
- From connectivity to intelligence
- From usage to outcomes
- From infrastructure to orchestration
The telecom providers that control intelligent engagement will capture the next wave of value.
Sources
- AI Voice 2026: Who Will Run the Conversation? — CPaaS Acceleration Alliance (CPaaSAA)
- The Telco Reinvention: How AI Can Fuel Value Creation — McKinsey & Company
- State of Voice AI Report 2025 — Deepgram
