As digital transformation has gathered an unprecedented pace amid the pandemic, enterrise services have emerged as the new value engine for telecom services providers, according to a report by ICICI Securities.

Noting that corporates are adopting cloud solutions and traditional networks are not purpose-built for it, it said that these new solutions, which run on internet WAN, are challenging the conventional hub and spoke model.

"Enterprise services are emerging as new value engine for telcos amid rise in demand for services in the wake of digital transformation," it said.

Services are also sold independent of network, which is challenging the conventional model.

However, this is also pushing telcos to re-innovate and broaden their service offerings by expanding into platform or software services.

Market for traditional services (voice and data) are declining, but the larger markets are opening up to cloud and managed services, such as security, edge computing, unified communications, among others, said the report.