Telecom Retail: Stuck in the Middle, or Ready to Lead Again?

Telecoms is standing at a crossroads, and retail is the one caught in the middle.
The industry has to decide who it wants to be next.

Does it fade into the background and become a dull utility, quietly managing towers, selling wholesale capacity, and billing subscriptions while the brands people actually love sit on top?
Or does it wake up, double down on customer experience, and reclaim the relationship with the people who power its business?

That is the real choice facing operators today.

The Identity Crisis of Modern Telecom

Most telcos know change is needed, but they are paralysed by complexity and legacy thinking.
They are trying to be everything at once: tech platform, infrastructure provider, and consumer brand, but doing none of it brilliantly.

Retail is the clearest reflection of this confusion.

All over the world, stores are closing. Many are being outsourced. Some are being redesigned as digital service hubs or pop-ups with no real commercial purpose.
Yet the irony is that the data shows younger customers actually value the retail channel more than ever.

They want help. They want to try devices. They want someone to make sense of the endless bundles, upgrades, and connected home options.
But too many telcos have forgotten what retail is really for.

Experience Still Drives Revenue

Somewhere along the way, operators started thinking of customer experience as an optional extra.
It is not. It is the engine that drives growth.

Great experience builds trust, and trust converts to sales. It is that simple.

When you pull back on experience, you do not just save money, you lose customers.
We are seeing this play out across Europe right now. Years of underinvestment in retail have hollowed out the high street. In markets like the UK, Italy, and Spain, that vacuum has been filled by nimble MVNOs who offer cheap, simple options online.

The result? Margins down. NPS down. Staff morale down.

Meanwhile, in regions like Africa, retail is booming. Operators there are treating physical stores as the hero channel, not a cost to be cut.
In Asia-Pacific, it has always been that way. Shopping is an experience, and telcos who make it fun win hearts, not just wallets.

Bright Spots Around the World

There are a few operators doing it right.

EE in the UK is one of them. Its new "people-first" concept stores are focused on human connection, not transaction time. They understand that in telecoms, people buy trust, not tariffs.

In the Middle East, e& is combining digital efficiency with genuine in-store engagement. They are bringing the product stories back to life. They are making technology feel exciting again.

Across Central and Northern Europe, a handful of brands are also rethinking what retail can be, turning stores into experience centres that blend learning, self-service, and expert advice.

The lesson from all of them is clear: retail still matters. But it has to evolve.

Complexity Is the Real Enemy

The biggest problem facing operators today is not competition, it is complexity.

Convergence has created a tangled mess. Operators now sell mobile, fibre, Wi-Fi mesh systems, smart home security, cloud gaming, streaming bundles, and subscription services.

You cannot sell that kind of portfolio with a quick in-and-out interaction. You need space. You need to build trust. You need time to explain how all these moving parts work together.

That is why a proper retail experience matters more than ever.

When a customer can sit down, have a coffee, try something hands-on, and talk to a real expert, they buy more. And they stay longer.

Experience is not the cost centre many CFOs think it is. It is the conversion engine for modern telecoms.

What Telcos Can Learn from Starbucks

It is not just telecoms facing this squeeze. Other industries are going through the same pain.

Starbucks used to own what it called the "third place" between home and work, a space where people relaxed, met others, and connected. That power has faded. The brand became formulaic. Competitors offered faster, cheaper, more personal experiences.

Telcos have a golden opportunity to step into that gap.

The retail store can become that third place again, a destination for learning, connecting, and exploring technology. But it will not happen by accident. It takes design, focus, and a clear strategy for each part of the footprint.

Rethinking the Store Strategy

Operators need to stop treating every store the same.

There is a clear opportunity to split retail into two models:

• High-Touch Flagships: Spaces for exploration, demos, and service. Designed to build brand love and showcase everything from connected homes to IoT wearables.

• High-Speed Satellites: Smaller, more efficient stores that handle quick upgrades, payments, and essential services. Fast, focused, and built around convenience.

This is how telcos can cover both customer expectations: depth and speed, without wasting budget.

The right geography matters too. Instead of blanket coverage, retail investment should follow population patterns, data insights, and brand strength. You do not need a store on every corner. You need the right ones in the right places.

The Global Picture

What is fascinating is how uneven this evolution is around the world.

In mature markets, retail is shrinking because executives think digital can replace it. In emerging markets, retail is expanding because executives see the value in human connection.

The smartest operators will combine both. They will use digital to power physical. They will bring the best of both worlds together: speed, data, convenience, and trust.

This hybrid model is where the next decade of telecom growth will happen.

The Bottom Line

Retail in telecoms is changing, but for most, not nearly fast enough.

Too many executives are clinging to old models or waiting for proof before they invest.
The proof already exists. It just is not in your market yet.

If you want to see the future, look beyond your borders. Study what EE, e&, and top Asian and African operators are doing. Learn from them. Copy the right ideas.

Because while some operators are cutting stores, others are quietly building the future of retail, one conversation, one experience, one human interaction at a time.

Telecoms has a choice to make.
Become the bland utility in the background, or the vibrant brand that customers actually love to visit.

Only one of those paths leads to growth.