Q&A: Why unified commerce is telecom’s next big transformation

The telecommunications industry is at a pivotal moment in its digital transformation. Telco companies are recognizing the power of unified commerce, but many still struggle with outdated systems and fragmented customer experiences. In this Q&A, Matt Alberts, Vice President of Global Solutions Consulting at commercetools, breaks down the challenges and opportunities telcos face in their journey toward a seamless omnichannel experience.

Q: Omnichannel has been a priority in retail for years. How does it compare in the telco world?

Matt Alberts: The concept is the same—customers expect a seamless shopping experience across all channels. But telcos came into the omnichannel game much later than retailers. Traditional retailers started dealing with these challenges in the early 2000s, whereas telcos didn’t start feeling the impact until about 10 years later.

A big reason for this shift was competition from Apple. When Apple opened its stores, customers were able to walk out with a new phone, set up and ready to use. They were also able to take advantage of the Genius Bar to learn how to use advanced features and hands-on tech services to troubleshoot issues. This made major telcos realize they needed a retail presence as well. Now, telcos run stores similar to traditional retailers, but their systems weren’t built for an omnichannel model. COVID-19 accelerated the need for capabilities such as curbside pickup and buy-online, pick-up-in-store (BOPIS). Telcos quickly discovered their systems weren’t equipped for this level of integration.

Q: If telcos have been investing in omnichannel for nearly a decade, why are they still struggling?

Matt Alberts: The biggest challenge is their outdated systems. Many telcos purchased their core commerce and POS systems 10 to 15 years ago and heavily customized them. But customization means they can’t easily upgrade or take advantage of new features.

For example, a tier one CSP had been using a legacy commerce platform for years but had customized it so much that it lacked true omnichannel capabilities. To create those capabilities, they would have to build them from scratch — which is incredibly resource-intensive. Retailers learned these lessons much earlier, but for telcos, the shift to omnichannel was slower, and now they’re playing catch-up.

Q: What does this fragmentation look like from a customer’s perspective?

Matt Alberts: The customer experience is completely disjointed. If you visit a telco store, they often have no record of what you did online. Prices, promotions and even device availability can vary between channels. That’s because most telcos operate four separate systems: one for online sales, one for call centers, one for corporate stores and one for franchise stores. Each system is managed by a different team, leading to inconsistencies. The ability to sell you certain things is only as good as the team that's supporting that particular channel, right?

Contrast that with Apple, where you can start your purchase online, pick it up in-store and get the same deal everywhere. That level of convenience builds loyalty. Other telcos are realizing that if they want to compete, they need to unify their commerce systems.

Q: How does unified commerce address these challenges?

A: Unified commerce brings all these disparate systems together onto a single backend platform. This eliminates data silos, allowing telcos to better leverage data to deliver consistent customer experiences across all channels. For telcos, unified commerce means they can finally connect the store experience to the online experience without replacing their existing systems.

Right now, if somebody in the business says, “I want to sell a phone with this particular deal and it doesn't exist in the systems," someone has to write it, not just once but four times. If you're on one unified system, you write it once and deploy it across all channels. All they figure out is what needs to happen if the customer is shopping for it online while sitting on the sofa versus when the customer is standing next to an associate in the store looking at it on an iPad. Right? That's all they have to do.

Q: What are the benefits of unified commerce for telcos?

A: The benefits are substantial. Telcos can reduce their total cost of ownership by eliminating redundant systems and teams. They can also increase their pace of innovation, respond faster to market changes and deliver more personalized shopping experiences.

On the customer side, the journey will become faster, easier, and more consistent. Customers won’t have to repeat themselves, deals will be the same across all channels, and transactions will be frictionless. This level of convenience and consistency will significantly improve satisfaction and loyalty.

Q: Are any telcos successfully achieving unified commerce?

Matt Alberts: There are hints of progress. For example, some believe that T-Mobile’s partnership with Microsoft signals a move toward a more integrated system, but there’s no definitive proof yet. Most telcos are still struggling to consolidate their systems.

The reality is that unified commerce requires a composable approach — breaking down the traditional monolithic systems and using best-in-class capabilities for different commerce functions. Telcos don’t necessarily need an all-in-one solution; they need flexible components that work together seamlessly.

Q: Why is unified commerce so crucial for telcos now?

Matt Alberts: Telcos need to move at the speed of business. Right now, every system operates at its own pace, creating bottlenecks. If marketing wants to launch a promotion, they might be able to roll it out online in six months, but in-store implementation could take years due to outdated systems. A unified commerce approach ensures that every channel can move as fast as digital technology allows.

Plus, telcos are realizing that their revenue has plateaued. With limited market growth, they need to differentiate through experience. Consumers don’t choose their provider based on network reliability anymore — that’s expected. What sets one telco apart from another is how easy it is to buy, upgrade and manage devices and plans.

Q: How does TM Forum fit into this transformation?

Matt Alberts: TM Forum has done an excellent job advocating for APIs and composable architecture in the telecom industry. However, most of their focus has been on network management, activation and billing. They haven’t really addressed the customer experiences, which need to be part of the discussion. That's where a composable commerce modern platform can support as it empowers businesses to increase revenue by seamlessly integrating key capabilities like product discovery, inventory, pricing, and transactions.

Q: What advice would you give to telcos considering composable commerce?

Matt Alberts: Don’t think of composable commerce as just another commerce system — it’s a strategic shift that can redefine how you interact with customers. When evaluating solutions, look for a partner that truly understands omnichannel commerce, not just network operations. And yes, consider in-store capabilities from the start. Instead of separating digital and physical commerce, eliminate friction and enhance the in-person experience by giving your in-store associates access to the same information and capabilities as your online channels.

Telcos have a chance to get ahead for once, rather than playing catch-up like they did with omnichannel. Those who act now will create seamless experiences that drive customer loyalty and long-term revenue growth.

Unified commerce isn’t just an option for telcos — it’s a necessity. The sooner they embrace it, the sooner they can stop lagging behind and start leading the industry forward.