Telecommunication operators like Verizon, AT&T, and T-Mobile US need to think more horizontally toward the lucrative enterprise market to take advantage of their core telecom network assets, analyst firm GlobalData noted in a recent report.

The firm stated that past telecom efforts to more aggressively target enterprise verticals have ended in heartbreak for operators due to their inability to focus enough resources on penetrating specific markets. There have been some successes when an operator partners with a third-party in specific areas, but GlobalData’s Gary Barton noted that “often success is built on opportunism rather than developing a deep relevance to that vertical.”

“There are examples of point solutions in areas such as IoT in certain verticals, and co-developed solutions, but these remain the exception rather than the rule,” Robert Pritchard, principal analyst at GlobalData, added.

Barton explained that operators are often tripped up by not understanding the specialized buying patterns of what GlobalData terms “sub-verticals, which all behave differently.”

“Telcos cannot realistically develop the depth of understanding to address all these highly nuanced needs,” Barton wrote. “Furthermore, doing so will lead to targeting increasingly smaller numbers of businesses thereby reducing the total addressable market or excessive go-to-market expenditure.”

Operators should instead continue to focus on network-based services that can serve more horizontal needs across enterprise markets. While not as sexy as being viewed as a specific enterprise vertical expert, GlobalData notes there is a lot of opportunity for operators taking this approach.

“Telcos’ core capabilities in connectivity and data networking make them naturally horizontal. This can make it more difficult for network operators to be vertical specialists as they work with enterprises of all kinds,” the research firm claims. “However, this broad appeal is as much a strength as a weakness. Telcos are selling solutions that almost all enterprises need. The challenge for providers is to nuance their messaging around the business benefits of their solutions.”

Telecom operators riding 5G fixed-wireless access (FWA) Operators are slowly warming to this new approach on the back of their 5G-based networks that can power new use cases like FWA, networking, and cybersecurity.

Verizon Business CEO Kyle Malady during a recent investor conference said that he was “really happy” with how enterprises are adopting the carrier’s FWA product. “I think we’re doing a bit better than I had really thought we might,” Malady said, adding that includes the ability to then add on new use cases.

These FWA use cases initially involved basic internet access but have evolved to include SD-WAN being layered on top, for data backup, and also to replace legacy infrastructure like copper lines.

“Demand for the service is strengthening as small businesses and enterprises continue to trust the reliability of the product and speed and ease of deployment,” Verizon CFO Tony Skiadas told investors during the carrier’s most recent earnings call.

Verizon CEO Hans Vestberg had previously pointed to the carrier’s 5G FWA product driving unique enterprise use cases.

“On the business side, we’re seeing new use cases that we didn’t see before, all the way from coffee shops replacing cable with fixed-wireless access to large enterprises actually replacing with fixed-wireless access as well for different use cases,” Vestberg said during the carrier’s Q1 earnings call.

AT&T’s management expressed similar enterprise enthusiasm for 5G FWA growth. While the carrier remains the smallest and newest entrant in the specific space, CFO Pascal Desroches did note the carrier sees growth opportunities in the business space.

AT&T CEO John Stankey further explained that the carrier is remaining selective in where it launches 5G FWA support, with enterprise customers showing different usage patterns from the consumer market.

“We’re doing it … any place the right business customer wants to buy it we’ll sell it, and that means whether we’ve got capacity or not.” Stankey said. “The business product is a different product. The business product has different usage characteristics. The business product has different [revenue] characteristics, and the business product has different characteristics around how you can bundle and serve multiple products together.”

Stankey added that this enterprise usage characteristic allows for a profitable path toward further expansion of the 5G FWA service.

“You’ll continue to see us scale further in the business market,” Stankey said. “We’re still getting the distribution tuned and honed in that space, and I would expect you’ll see improvement in our numbers in the business segment as we move forward in the coming quarters.”

Cybersecurity, SD-WAN, and secure access service edge (SASE) Similar to Verizon’s SD-WAN efforts, T-Mobile US is increasing its FWA network focus to power cybersecurity components.

T-Mobile US recently launched a subsidy program with channel partners in an attempt to goose enterprise adoption of its 5G-based FWA service. The program reduces the initial cost of 5G-enabled laptops and enterprise-grade 5G FWA equipment, which analysts noted has been limiting enterprise adoption.

“The price tag of 5G devices, particularly laptops, has been a major obstacle for businesses looking to adopt 5G solutions,” Patrick Moorhead, chief analyst at Moor Insights and Strategy, noted in a statement tied to the T-Mobile US program launch.

The carrier also touted the ability for enterprises taking the offer to upgrade to T-Mobile US’ recently launched SASE product. That product was launched last year as a network management and zero-trust network access (ZTNA) platform.

T-Mobile US thinks it can maintain its unique position in the market in offering something that traditional SASE vendors can’t provide.

“Security is really top of mind, so that’s why you really see a proliferation of companies delivering SASE solutions,” Mishka Dehgan, SVP for strategy, product, and solutions engineering at T-Mobile’s Business Group, told SDxCentral as part of that service launch. “But all of them are traditional SASE and they’re all software based. We wanted to make sure that we work with partners that understand and aligned with our approach on making it hardware based and really bringing that differentiation.”

GlobalData’s Barton noted that these service and security add-ons are a good angle of attack for operators that want to squeeze more revenue from this network-based focus.

“Telcos should be aware that services such as internet/cloud access and SD-WAN/SASE are essentially horizontal,” Barton wrote. “Instead of seeking deep vertical relevance in their core portfolios, telcos should demonstrate how their solutions will be the crucial enabler for an enterprises wider transformation journey as they seek to embrace technologies such as cloud and [artificial intelligence].”