Telecom operators still hold the upper hand when it comes to monetizing 5G-based services despite the growing influence of webscale cloud providers, according to a new report from MTN Consulting. However, that grasp is tenuous.

The research firm explained that telecom operators can maintain some level of financial and operational control by adopting common enterprise models of multi-cloud or hybrid cloud deployments. Arun Menon, principal analyst at MTN Consulting, wrote in the report that this approach can help “mitigate dependence on a single cloud provider.”

Some operators are heeding this advice. AT&T, for instance, has an overarching cloud agreement with Microsoft to run the carrier’s 5G network on top of Azure, but also has agreements that allow other services to run in different cloud environments.

The challenge for telecom operators will be in figuring out how long they can maintain their independence and from ceding increasing control of more advanced services and features to those cloud providers. Menon noted that while operators can control that dependance, it will be difficult to stifle that creep.

“That’s because even if telcos manage to develop cloud expertise internally or through partnerships, webscale cloud providers will always strive to continually improve their expertise and offerings – something that telcos will find difficult to keep pace with, in the long run,” he wrote. “Telcos are best off leaving it to the experts.”

One area cloud providers will likely avoid is the actual connectivity layer. This is the domain of telecom operators that in most cases control the necessary spectrum and corresponding towers required to actual beam signals to customers.

Menon also cited the underlying regulatory environment telecom operators are required to negotiate, a space that sends shivers down the spine of cloud providers.

“Telecom is a highly regulated industry, and that’s a big barrier for webscale cloud providers who are already battling regulators over security, privacy, and market power issues in key markets,” he explained.

Menon added that the telecom-webscale confab is still in its early stages, which provides a lot of opportunity for both sides to negotiate their place in the ecosystem and that impact on their bottom line.

“All eyes will be on whether the deals translate into earnings and costs benefits while transforming telcos’ complex networks, and how significant the cloud providers will evolve along the journey,” he wrote.