The expectation gap

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For years, telecom providers could sell connectivity like a utility. Reliable pipes, predictable pricing, technical specs that sounded impressive on paper. The enterprise might nod, sign, and assume the value would show up in uptime percentages and network speed tests.

That era is over.

In today's enterprise landscape, customers aren't paying for infrastructure. They're paying for outcomes. Not because they've become unreasonable — but because they're accountable. Digital transformation budgets are scrutinized. Every technology vendor competes against the same question: What business impact will this have, and how soon will we see it?

The shift is subtle but profound: connectivity isn't something you provide. It's something you prove.

For years, telecom providers could sell connectivity like a utility. Reliable pipes, predictable pricing, technical specs that sounded impressive on paper. The enterprise might nod, sign, and assume the value would show up in uptime percentages and network speed tests.

That era is over.

In today's enterprise landscape, customers aren't paying for infrastructure. They're paying for outcomes. Not because they've become unreasonable — but because they're accountable. Digital transformation budgets are scrutinized. Every technology vendor competes against the same question: What business impact will this have, and how soon will we see it?

The shift is subtle but profound: connectivity isn't something you provide. It's something you prove.

The Gap Nobody's Talking About

Here's the uncomfortable truth hiding in plain sight: 74% of organizations now expect their telecom provider to drive measurable business results. Revenue growth. Operational efficiency. Competitive advantage.

And yet, only 39% say their telco actually delivers on that expectation.

That's a 35-point gap. Not a rounding error. A chasm.

The same pattern repeats across every dimension of the relationship. 74% of organizations want their telco to act as a strategic partner in digital transformation. But only 41% believe their provider adds value beyond connectivity.

This isn't about customers becoming more demanding for its own sake. It's about a fundamental mismatch between what enterprises need and what telcos are structured to deliver. The market has moved. The providers, largely, have not.

The Gap Nobody's Talking About

Here's the uncomfortable truth hiding in plain sight: 74% of organizations now expect their telecom provider to drive measurable business results. Revenue growth. Operational efficiency. Competitive advantage.

And yet, only 39% say their telco actually delivers on that expectation.

That's a 35-point gap. Not a rounding error. A chasm.

The same pattern repeats across every dimension of the relationship. 74% of organizations want their telco to act as a strategic partner in digital transformation. But only 41% believe their provider adds value beyond connectivity.

This isn't about customers becoming more demanding for its own sake. It's about a fundamental mismatch between what enterprises need and what telcos are structured to deliver. The market has moved. The providers, largely, have not.

Connectivity is the Foundation

Let's be clear about what's happening here. Enterprise buyers aren't saying connectivity doesn't matter. They're saying connectivity is table stakes.

Think about it from the buyer's perspective. They're not evaluating telecom in isolation. They're evaluating technology partners who can help them compete, transform, and grow. The CIO isn't asking "who has the best latency?" They're asking "who understands my industry well enough to help me move faster?"

The data backs this up:

  • 77% of organizations expect telcos to demonstrate a strong understanding of their business workflows and sector-specific challenges.

  • 69% want tailored solutions, not generic packages.

  • 64% prioritize providers who understand their specific market.

And yet, only 37% say their telco consistently delivers what they need.

That last number is the one that should keep telecom executives up at night. It means nearly two-thirds of enterprise customers feel like their provider is operating on a different frequency entirely.

Connectivity is the Foundation

Let's be clear about what's happening here. Enterprise buyers aren't saying connectivity doesn't matter. They're saying connectivity is table stakes.

Think about it from the buyer's perspective. They're not evaluating telecom in isolation. They're evaluating technology partners who can help them compete, transform, and grow. The CIO isn't asking "who has the best latency?" They're asking "who understands my industry well enough to help me move faster?"

The data backs this up:

  • 77% of organizations expect telcos to demonstrate a strong understanding of their business workflows and sector-specific challenges.

  • 69% want tailored solutions, not generic packages.

  • 64% prioritize providers who understand their specific market.

And yet, only 37% say their telco consistently delivers what they need.

That last number is the one that should keep telecom executives up at night. It means nearly two-thirds of enterprise customers feel like their provider is operating on a different frequency entirely.

The Customization Premium Is Real

Here's where it gets interesting. Customers aren't just asking for more. They're willing to pay for it.

65% of organizations will pay a premium for customized services over standard offerings. That's up from 57% just a year ago. The willingness to invest in tailored solutions is accelerating faster than most providers realize.

But there's a catch: 78% expect bundled services that solve operational or strategic problems. Only 34% believe their current telecom bundles actually do that.

In other words, customers are ready to pay more — but not for bundles that feel like product catalogs stapled together. They want integrated solutions that move the needle on real business problems.

The opportunity is massive. The execution gap is equally massive.

The Customization Premium Is Real

Here's where it gets interesting. Customers aren't just asking for more. They're willing to pay for it.

65% of organizations will pay a premium for customized services over standard offerings. That's up from 57% just a year ago. The willingness to invest in tailored solutions is accelerating faster than most providers realize.

But there's a catch: 78% expect bundled services that solve operational or strategic problems. Only 34% believe their current telecom bundles actually do that.

In other words, customers are ready to pay more — but not for bundles that feel like product catalogs stapled together. They want integrated solutions that move the needle on real business problems.

The opportunity is massive. The execution gap is equally massive.

Different Buyers, Different Truths

One reason the expectation gap persists is that enterprise buying has changed fundamentally. This isn't a single decision-maker signing off on a network contract. It's a coalition of stakeholders, each with their own definition of value.

The network operations team wants reliability and coverage. The CFO wants cost predictability and ROI justification. The business unit leader wants competitive advantage. The CIO wants a partner who won't become a bottleneck.

Generic telco offerings fail because they try to solve all of these with one pitch deck. But value means different things at different altitudes:

  • For the operator: friction removed.

  • For the executive: risk reduced.

  • For finance: spend justified.

  • For the business: outcomes delivered.

Telecom providers that win will be the ones who can map a single solution to multiple forms of value — and show how they connect. That requires understanding the customer's business deeply enough to speak each stakeholder's language.

Different Buyers, Different Truths

One reason the expectation gap persists is that enterprise buying has changed fundamentally. This isn't a single decision-maker signing off on a network contract. It's a coalition of stakeholders, each with their own definition of value.

The network operations team wants reliability and coverage. The CFO wants cost predictability and ROI justification. The business unit leader wants competitive advantage. The CIO wants a partner who won't become a bottleneck.

Generic telco offerings fail because they try to solve all of these with one pitch deck. But value means different things at different altitudes:

  • For the operator: friction removed.

  • For the executive: risk reduced.

  • For finance: spend justified.

  • For the business: outcomes delivered.

Telecom providers that win will be the ones who can map a single solution to multiple forms of value — and show how they connect. That requires understanding the customer's business deeply enough to speak each stakeholder's language.

The Innovation Expectation

Beyond day-to-day delivery, enterprises increasingly expect telcos to be ahead of them — not behind.

71% of organizations expect early access to emerging technologies from their telecom provider. That's up from 62% just a year ago. 65% want collaboration on pilot projects and prototypes, up from 56%.

These numbers signal something important: customers don't just want vendors who fulfill orders. They want partners who bring ideas, who understand where the market is heading, and who can help them get there first.

But only 38% of organizations agree that their telco adequately supports their future growth and innovation plans.

One industry executive put it bluntly: telcos "operate in a reactive mode, rather than reaching out with industry-specific use cases that could enhance our current setup."

That's the gap in a sentence. Customers want proactive partners. They're getting reactive vendors.

The Innovation Expectation

Beyond day-to-day delivery, enterprises increasingly expect telcos to be ahead of them — not behind.

71% of organizations expect early access to emerging technologies from their telecom provider. That's up from 62% just a year ago. 65% want collaboration on pilot projects and prototypes, up from 56%.

These numbers signal something important: customers don't just want vendors who fulfill orders. They want partners who bring ideas, who understand where the market is heading, and who can help them get there first.

But only 38% of organizations agree that their telco adequately supports their future growth and innovation plans.

One industry executive put it bluntly: telcos "operate in a reactive mode, rather than reaching out with industry-specific use cases that could enhance our current setup."

That's the gap in a sentence. Customers want proactive partners. They're getting reactive vendors.

The "Rip It Out" Test

Here's a blunt way to check whether a telecom relationship is delivering real value:

If the enterprise removed the provider tomorrow, would they feel a business impact — or would they mostly feel inconvenience?

When the answer is "impact," you have an outcome. When the answer is "inconvenience," you have usage. And usage without value is a churn story waiting to happen.

Most telco relationships today would fail this test. The provider is embedded in the infrastructure, sure. But they're not embedded in the strategy. They're not driving decisions. They're not part of how the customer thinks about competitive advantage.

That's a vulnerable position to be in — for both sides.

What Enterprises Should Be Asking

If you're an enterprise buyer evaluating telecom providers — or re-evaluating your current one — the research suggests a different set of questions than the traditional RFP:

On strategic value:

  • Does this provider understand our industry well enough to anticipate our needs?

  • Can they quantify business outcomes, not just network performance?

  • Are they proactive about innovation, or reactive to our requests?

On integration:

  • Will their solutions integrate seamlessly with our existing cloud, edge, and AI infrastructure?

  • Are they equipped to act as an ecosystem orchestrator, or are we managing multiple vendors ourselves?

On customization:

  • Do their bundles solve our specific operational or strategic challenges?

  • Are they willing to co-design solutions, or just sell from a catalog?

On accountability:

  • Will they commit to business outcomes, not just SLAs?

  • How do they measure success — and is it aligned with how we measure it?

The providers who can answer these questions convincingly are the ones who've made the shift from connectivity vendor to growth partner. The ones who stumble are still operating in the old paradigm.

The Path Forward

The expectation gap isn't going to close on its own. Enterprise demands will only intensify as digital transformation accelerates, AI reshapes operations, and competitive pressure grows.

For telecom providers, the choice is stark: evolve into strategic partners who drive measurable business outcomes, or compete on price in an increasingly commoditized market.

For enterprise buyers, the leverage has never been greater. The willingness to pay for real value is there. The frustration with generic offerings is documented. The expectation for partnership — not just provisioning — is now the norm.

The question isn't whether the gap exists. It's who will close it first.

The "Rip It Out" Test

Here's a blunt way to check whether a telecom relationship is delivering real value:

If the enterprise removed the provider tomorrow, would they feel a business impact — or would they mostly feel inconvenience?

When the answer is "impact," you have an outcome. When the answer is "inconvenience," you have usage. And usage without value is a churn story waiting to happen.

Most telco relationships today would fail this test. The provider is embedded in the infrastructure, sure. But they're not embedded in the strategy. They're not driving decisions. They're not part of how the customer thinks about competitive advantage.

That's a vulnerable position to be in — for both sides.

What Enterprises Should Be Asking

If you're an enterprise buyer evaluating telecom providers — or re-evaluating your current one — the research suggests a different set of questions than the traditional RFP:

On strategic value:

  • Does this provider understand our industry well enough to anticipate our needs?

  • Can they quantify business outcomes, not just network performance?

  • Are they proactive about innovation, or reactive to our requests?

On integration:

  • Will their solutions integrate seamlessly with our existing cloud, edge, and AI infrastructure?

  • Are they equipped to act as an ecosystem orchestrator, or are we managing multiple vendors ourselves?

On customization:

  • Do their bundles solve our specific operational or strategic challenges?

  • Are they willing to co-design solutions, or just sell from a catalog?

On accountability:

  • Will they commit to business outcomes, not just SLAs?

  • How do they measure success — and is it aligned with how we measure it?

The providers who can answer these questions convincingly are the ones who've made the shift from connectivity vendor to growth partner. The ones who stumble are still operating in the old paradigm.

The Path Forward

The expectation gap isn't going to close on its own. Enterprise demands will only intensify as digital transformation accelerates, AI reshapes operations, and competitive pressure grows.

For telecom providers, the choice is stark: evolve into strategic partners who drive measurable business outcomes, or compete on price in an increasingly commoditized market.

For enterprise buyers, the leverage has never been greater. The willingness to pay for real value is there. The frustration with generic offerings is documented. The expectation for partnership — not just provisioning — is now the norm.

The question isn't whether the gap exists. It's who will close it first.

Victor Ivarsson

Global Customer Director

Planhat

Victor is a seasoned Customer Success Director currently focused on enabling Managed Service Providers and Telcos navigate and maximize the Cisco360 partners ecosystem at Planhat. He is a former collegiate dual-athlete with 15+ years of experience in the IT and SaaS-industries with an extensive international background. Throughout his career he has built and developed profitable Sales, CS, and PS teams as well as an IPO on NASDAQ.

The expectation gap