Organized by Purple, a recent webinar brought together two influential voices in telecom—Gavin Patterson (former CEO of BT and President at Salesforce) and Andy Dancer (tech entrepreneur and advisor)—to dissect the market shifts impacting connectivity and the role of software in telecom. Their discussion peeled back the curtain on the convergence of three powerful trends: the decline of fixed lines, the commoditization of data, and the disruption caused by AI to SaaS models.
Fixed Line: A Legacy in Decline
Fixed lines, once the basis of telco revenues, are rapidly becoming obsolete. Patterson highlighted that BT’s fixed-line revenues fell from 80% of total income in 2003 to less than 20% today. This is no longer a gradual fade but a collapse. Consumers are opting for mobile-only services, and enterprises are embracing unified communications over IP, diminishing the relevance of traditional voice lines.
Connectivity Is No Longer a Differentiator
At the same time, connectivity prices have dropped dramatically, and customer loyalty has become increasingly difficult to maintain. With broadband prices down 40% over the past decade and per-gigabyte costs in freefall, ISPs are caught in a race to the bottom, and differentiation is becoming harder.
"As we've observed across markets, the ability for ISPs to use intelligence, analytics, and specific outcomes atop their networks is now the only sustainable path to remaining relevant to customers."
SaaS Under Pressure
Perhaps the most disruptive force covered in the webinar was AI’s transformative impact on the software economy. Patterson pointed out that AI is now writing the majority of code in many firms, upending traditional SaaS economics. Why pay for large, feature-heavy platforms when AI can replicate most of the needed functionality in-house?
We're seeing the classic innovator’s dilemma happen right now. Today’s SaaS apps have many features, but most people only use about 20%. The important part? The 20% you use is probably very different from someone else's. SaaS companies keep adding new features to attract more users and stay ahead, making the apps more complicated and harder to use.
"While the death of SaaS has been greatly exaggerated, this pressure is prompting companies to rethink their business models—abandoning rigid license-based pricing and adopting modular, subscription-based, or open-source-compatible frameworks."
We’re seeing this evolution firsthand. Companies like WiBUZ are transitioning toward hybrid models that blend open platforms with premium support, integration, and on-demand customization with a live SDK. In this new paradigm, success is tied less to the breadth of features and more to how well platforms integrate, adapt, and empower clients to innovate on their own terms.
Evolve or Die
The convergence of legacy infrastructure decay, data commoditization, and AI-driven software disruption is redrawing the telecom landscape. For ISPs to remain relevant to their customers, they must become much more flexible and customer-centric.
"Despite these challenges, the conversation wasn’t all doom and gloom. These are strategies discussed in the webinar for connectivity providers to remain relevant in the market."
Harness Network Effects
Speakers emphasized the power of achieving critical mass in a two-sided network. Platforms that attract users and service providers, like Facebook, Uber, and Airbnb, can reach critical mass and become the default destination, creating a self-reinforcing growth loop. Easier said than done though....
Leverage Distribution Channels
Patterson reflected on his tenure at BT, noting that he underestimated the power of distribution. Companies that excel as channel partners for innovators are well-positioned to succeed. Innovation typically comes from outside the organization, and the key is to be the conduit through which it reaches the customer.
Double Down on Specialized Services
While generic offerings are becoming easier to replicate, companies with deep domain expertise and the ability to apply it to specific verticals or customer needs have a durable advantage. The future belongs to those who can bring value through real insight and vertical specialization.
Operate with Low Friction.
Traditional capital expense models are no longer sustainable. Businesses must find low-friction, high-value ways to enter markets and demonstrate ROI quickly. Removing entry barriers and using data insights to drive monetization and decision-making are essential.
Conclusion
The telecom and software industries are changing fast. Old business ways, like relying on fixed lines or selling basic data services, are no longer viable. AI is also making it easier for companies to build their own solutions, which puts pressure on traditional software providers.
To stay ahead, ISPs must focus on what makes them different, build strong partnerships, and constantly prove they offer real value to their customers.
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