Smart city initiatives are constantly evolving around the globe. At present, more than 100 cities are implementing some kind of smart solution within their ecosystem and by 2020, Arthur D. Little predicts that the global market will grow to a whopping size of more than $2 trillion. Telecommunication players around the world are engaging in the smart-city context – but, as of today, mostly as “connectivity suppliers” rather than significant drivers of overarching smart-city initiatives. In this article, a guest feature written by Ansgar Schlautmann, Global Head of the “Innovative Business Designs” competence Center at Arthur D. Little, Ansgar discusses the strategic questions that operators need to consider in order to tap into the smart-city opportunity.