Operators Diversify in Search for New Consumer Revenue

For years, telecom operators have looked to diversify beyond connectivity in search of new revenue. The enterprise market has been a popular choice for this, with operators pitching solutions including IT, cybersecurity, cloud and internet of things to companies in a range of industries.

But selling adjacent services to consumers has always proved a harder nut to crack. In a seemingly perennial search to boost spending, operators face a recurring dilemma: take risks by moving into new areas or commit to connectivity but sacrifice opportunities to grow.

The decision on whether to diversify is becoming more urgent as prices fall in some leading markets. For example, data from FDM CCS Insight’s UK Sales Panel shows that the average price for taking out standard broadband packages dipped by 0.6% year-on-year in the first quarter of 2026, including a near-5% fall in tiers offering speeds of 150 Mbps or more.

In our new report Operators Target New Markets in Bid to Revive Consumer Spending, we assess the success or failure of approaches taken to date and identify potential opportunities for operators. Here’s a snapshot:

• Content and TV is the preferred product extension for many operators, with most taking an aggregator role to offer a range of channels as part of a converged-services strategy. But others have gone further, either through major acquisitions, securing rights or creating their own content. The best-known move here was also the biggest failure: AT&T’s disastrous purchase of Time Warner in a blockbuster $80 billon deal in 2018. Verizon’s ill-fated acquisition of ageing internet brands AOL and Yahoo failed to deliver, and BT’s investment in sports broadcasting rights also had questionable returns. My recommendation to those considering a similar route is to bundle rather than buy, offering the widest possible range of great content, combined with easy access, flexible plans and intelligent search capabilities.
• Some operators have differentiated through financial services. In emerging markets, where many people remain “unbanked”, this strategy has proved highly successful. But in regions like Europe, it has proved more challenging: Orange and Telekom Austria, for example, have closed their ventures in this market.
• Energy is an area that offers potential. Gas and electricity — like connectivity — are intangible, utility-type services that could be relatively easily positioned alongside traditional offers. Already, a few operators have gone down this path, notably Telecom Italia, which is selling gas and electricity in partnership with Poste Italiane, its biggest shareholder. As I highlighted in this blog, TIM is giving discounts to people taking its bundles of energy, broadband, TV and mobile to encourage sign-ups. However, market volatility could present a major challenge in the energy sector; the current war in the Middle East is threatening supply and has resulted in a spike in prices.
• Several operators have diversified into healthcare, but most of their efforts are based on IT and connectivity solutions for companies. Only a few offer services directly to customers, like Filipino operator, Globe Telecom, which provides access to medical consultations, an online pharmacy, wellness services and nursing care. Of course, tracking health metrics is a growing prospect for the tech sector. But it’s already a prime focus for firms in the consumer wearables space, including major brands like Apple, Samsung, Garmin and Google, leaving little room for telcos.
• Gaming presents another opportunity. It was a major focus for EE’s former CEO, Marc Allera, who struck partnerships with brands including PlayStation, Xbox and Nvidia. However, his successor Claire Gilles hasn’t shown the same enthusiasm, and the company has been tight-lipped as to how well the venture has performed.
• A handful of operators have moved into insurance, partnering with specialists in areas like travel, buildings and automotive. One of the more-novel propositions I’ve spotted is a bicycle insurance scheme from Swisscom, starting at 14.90 Swiss francs (€16) per month.
• Travel is another option. As well as low-priced connectivity offers through eSIM — which we profiled in our Spotlight: Travel eSIM, 2025 report — operators can work with travel organizations like airlines, leisure companies, hotels and agencies to play a greater role in the different stages of a trip.
• A few operators, like Orange, Telenor and Swisscom, offer cybersecurity services to consumers. It’s a natural extension to a connectivity offering, albeit not the most exciting purchase for consumers.
• Other areas we cover in the report include automotive, groceries and pet care.

The telecom industry has a chequered history of offering consumer services beyond connectivity, but operators should continue to evaluate possibilities. With millions of customers to cross-sell to as trusted, well-known brands, there remains ample potential. I’d recommend entering new markets by partnering rather than making acquisitions. Focus on offering something different than what’s already in the market and offer clear incentives to sign up or switch from a rival provider.

But operators must also stay true to their connectivity roots. The network should always be the primary focus. Success demands the right balance between harnessing established connectivity services and developing promising new ventures that deliver significant incremental revenue.