By 2026, the business strategy for North America’s major telecommunications carriers has fundamentally changed. Their decisive move has been to invest in Subscription Commerce Marketplaces, transitioning from selling basic connectivity to operating as integrated digital service platforms (McKinsey, 2025). This pivot is a direct response to a harsh economic reality and shifting enterprise demand. For cable cos & ISPs, understanding this shift is critical, as it redefines the competitive landscape and dictates new pathways for survival.
Why Big Telcos Made the Move
Large carriers built marketplaces for two clear reasons: financial pressure and customer demand.
First, the old business of selling internet access alone became financially difficult. Data use keeps growing because of trends like remote work, AI, and connected devices, but the money earned per gigabyte keeps falling. At the same time, building new 5G, fiber, and edge computing networks is extremely expensive (Zeeve, 2025). Relying only on connectivity sales was no longer enough to grow revenue.
Second, business customers now want simpler solutions. Modern B2B buyers—often younger, tech-savvy decision-makers—strongly prefer buying bundled services from one provider instead of managing many separate contracts. Research shows 56% of customers choose to buy integrated packages because they work well and are easy to manage (McKinsey, 2025). This is especially true for areas like cybersecurity, cloud tools, and industry-specific software.
Subscription marketplaces solve both problems. They let big telcos use their existing customer relationships and billing systems to sell high-margin SaaS, security, and cloud services alongside internet access. This changes their role from a basic utility to a digital transformation partner. Analysts project this “beyond connectivity” approach could create an $80 billion revenue opportunity by 2028 (McKinsey, 2025).
Proof the Strategy Works
The investment is paying off with clear business results.
Companies that buy bundled digital services through these carrier marketplaces stay loyal longer. Data shows these customers have 30–40% lower churn than those buying only connectivity, creating more stable, predictable income (McKinsey, 2022). This stickiness comes from the added value and complexity of leaving a full solution bundle.
Technically, successful marketplaces use flexible, API-based systems that make it easy to add and manage third-party services while keeping network reliability (BigCommerce, 2026). This supports a pricing shift—from charging for bandwidth alone to charging for business results and actual use.
What This Means for Smaller ISPs
For regional ISPs, this shift creates serious competitive pressure. As business customers move to big carriers for all-in-one solutions, the value of buying internet access alone drops.
This leads to shrinking profits. Experts warn that ISPs focused only on connectivity could see 15–25% lower margins in the coming years as marketplace adoption grows (Delloitte, 2025). The threat isn’t just about price—it also affects customer relationships and talent, as both tend to move toward more advanced platform providers.
What This Means for Smaller ISPs
Despite the challenge, regional providers have practical options. Their survival depends on using their natural strengths: agility, local knowledge, and niche expertise.
Partner with a Marketplace Vendor
The fastest way is to use a white-label platform from companies like AppDirect or CloudBlue. This lets a smaller ISP launch its own branded digital service store in months, offering curated SaaS and cloud tools without building everything from scratch.
Focus on a Specific Industry
While big carriers serve everyone, regional ISPs can dominate verticals like healthcare, local government, or education. Deep knowledge of industry rules and the ability to provide local, hands-on support create a strong competitive advantage.
Join Forces with Other ISPs
By forming alliances or consortiums, regional providers can share costs, build a more attractive service catalog, and get better deals from technology vendors through group buying power.
Become a Full Managed Service Provider (MSP)
Evolving into an MSP means offering managed security, cloud support, and other IT services. This requires developing new expertise and shifting to contracts based on service outcomes, not just bandwidth.
What Smaller ISPs Need to Do Now
Picking a direction is just the start. Succeeding in the 2026 market requires updates in three areas:
- Pricing Models: Move from selling bandwidth to selling solution bundles tied to business value.
- Technology: Invest in API-friendly and cloud-based systems to connect with partners smoothly.
- Team Skills: Build skills in solution design, partner management, and customer success—different from traditional network engineering.
Conclusion
By 2026, subscription commerce marketplaces will be the normal way to serve business customers. For smaller ISPs, adapting is no longer optional—it’s essential for staying relevant. The future will favor providers that use partnerships, industry expertise, and collaboration to offer real value beyond basic internet access. Those who stick only to connectivity will be squeezed out. In this new landscape, reinvention is the only way forward.