Telecoms operators enter 2025 haunted by the long-held fear of becoming “just another utility”, although private networks and enterprise solutions offer major opportunities to diversify their offerings. However, as demand for AI-powered products and services grows, so too does pressure on their networks, requiring key investments into infrastructure such as cable systems and data centres. […]
Telecoms operators enter 2025 haunted by the long-held fear of becoming “just another utility”, although private networks and enterprise solutions offer major opportunities to diversify their offerings.
However, as demand for AI-powered products and services grows, so too does pressure on their networks, requiring key investments into infrastructure such as cable systems and data centres.
Industry experts offer their insights into how these challenges will play out and outline opportunities for the telco sector and enterprise telecoms.
Regulation will lead to slower but more widespread AI adoption
Liz Parry, CEO, Lifecycle Software
“In 2025, increased AI regulation, such as the EU AI Act, will challenge telecom companies while offering opportunities for growth. These regulations emphasise transparency, data protection, and ethical AI use, requiring significant investment in governance. Compliance may slow AI deployment but will foster consumer trust and broader adoption over time.
“To navigate these changes, telecom providers may adopt hybrid cloud strategies and targeted AI models to reduce compliance risks. Success will hinge on balancing automation with oversight, enabling secure, efficient, and personalised services while safeguarding user privacy.”
AI will super charge CX and network management automation
Rajiv Malhotra, Head of EMEA Business, Firstsource
“By 2025, AI’s role in telecom will expand significantly. Advanced chatbots, like those powered by ChatGPT-4 and Google Gemini, will resolve issues faster, anticipate problems, and proactively offer or implement solutions. Predictive intelligence will reduce downtime, improve reliability, and enhance customer support.
“Beyond customer service, AI will drive automation in tasks like traffic management, predictive maintenance, and real-time network monitoring, creating smarter, more responsive infrastructures. Telecom’s future lies in anticipating customer needs and seamlessly integrating AI to enhance efficiency, resilience, and service quality across the industry.”
Roary Stasko, CEO, Telstra International
“In 2025, the telecommunications industry will ramp up the use of AI for network management, particularly in autonomous planning and intent-driven design. This shift will allow for predictive network optimisation, as AI and machine learning algorithms analyse real-time data on inventory, sales, and usage patterns.
“Digital twins will play a crucial role in this transformation, enabling complex scenario simulations that can speed up service development and cut down on time-to-market. By creating virtual replicas of their networks, operators can test and optimise configurations in a simulated environment before rolling them out in the real world. This approach sets a new standard for efficiency and reliability in the industry.
Roary Stasko, CEO, Telstra International
Subsea cables and data centre infrastructure will be key for growth
David Evans, head of asset recovery & services, TXO
“2025 will continue to see investment into submarine network capacity and infrastructure across key connectivity hubs including the Philippines and the broader Indo-Pacific region. The Philippines’ growth as a strategic connectivity hub has been driven by its evolving regulatory landscape, particularly new regulations like the Public Service Act, which allows 100% foreign ownership and creates a highly favourable operating environment for overseas businesses.
“In Australia, data centres are projected to consume up to 8% of national energy grids by 2030, raising concerns about potential electricity price increases.
“To address these challenges, tech companies and data centre operators will likely seek markets where they can trade latency for sustainable energy access. This approach could bring Australia closer to Asian markets, potentially emerging as a pivotal Indo-Pacific connectivity hub, though significant investments will be required to successfully navigate this transition.”
Roary Stasko, CEO, Telstra International
“Subsea cable maintenance will have a major impact on the sector, as it’s increasingly recognised as being critical to the resilience and security of global digital infrastructure, which is essential for supporting the growth of the digital economy.
“Governments are taking an interest in this area, and we can expect to see a firmer policy approach to subsea cable repair and maintenance across the supply chain.”
Industry verticals offer new opportunities as demand for IoT and Private 5G grows
Matt Sawyer, vice president, Telco, Kyndryl UK
“In 2025, telecommunications enterprises will lean into the power of 5G to deepen their push into micro-industry verticals — highly-specialised niches within industries that focus on very specific segments or sets of needs.
“Consider a fast-food chain that wants to experiment with robotics to operate elements of its back kitchen. To make that work, they’ll need sensors to build out and automate their design. Micro vertical stacks help bring AI to the edge.
“This can be extended to a retail store, a bank branch, a hospital campus, and much more. Investments in 5G have helped build out edge computing, but many enterprises have not fully realised its usefulness. For telecommunications companies, this is seen as a business opportunity to explore.
Iain Davidson, senior product manager, Wireless Logic
“AT&T’s decision to decommission Narrowband IoT (NB-IoT) signals the decline of this LPWAN technology.
“5G RedCap, a 5G standard suited for IoT applications, will help fill the gap but won’t yet dominate. For now, it will complement LTE-M and 4G Cat-1 BIS as connectivity options.
“This variety underscores the need for IoT customers, especially in growth markets like trackers and wearables, to collaborate with providers to choose the best technology for their needs.”
Iain Davidson, senior product manager, Wireless Logic
Sandeep Raithatha, head of strategy, innovation & 5G IoT products, Virgin Media O2
“Private network adoption will surge in 2025, with the market projected to hit $6.4bn by 2026. Standalone private 5G networks are expected to account for 40% ($2.8bn) of investments, while the Shared Rural Network boosts 4G coverage to 95% of the UK landmass.
“Businesses in industries like manufacturing, healthcare, education, and smart cities will increasingly adopt private 5G for secure, high-performance communication and automation.
“Network slicing, enabled by 5G standalone architecture, will emerge as a key innovation, allowing multiple virtual networks on shared infrastructure. This ensures tailored, scalable, and cost-efficient connectivity solutions for organisations.”
Tiago Rodrigues, CEO, Wireless Broadband Alliance
“IoT Evolution with Wi-Fi Generations and Wi-Fi HaLow – As IoT devices proliferate, Wi-Fi 6 and 7 will play a vital role in managing large-scale connections for smart homes, cities, and industries.
“Wi-Fi HaLow, with its long range, superior penetration, and enhanced battery life, is set to revolutionise sectors like agriculture, smart cities, and manufacturing, boosting efficiency and data collection. HaLow’s disruptive potential makes it a perfect fit for long-range, intelligent IoT applications, ready to transform the ecosystem.”
Tiago Rodrigues, CEO, wireless broadband alliance
Smart Cities will embrace OpenRoaming
(Rodrigues continues)
“Municipalities and governments will continue to expand public Wi-Fi networks as part of smart city initiatives, offering free or low-cost connectivity in urban areas. These networks will support everything from smart transportation systems to energy management and public safety.
“OpenRoaming is set to play a pivotal role in the expansion of public and Smart City Wi-Fi networks. For Smart Cities like Tokyo, London and others, this seamless transition between networks enables reliable, continuous connectivity for citizens and devices alike, supporting applications like real-time traffic monitoring, public safety systems, and IoT-based services. Municipalities and public Wi-Fi providers will likely prioritize OpenRoaming to enhance user experience, simplify network management, and foster more data-rich urban environments.”
Vendors shift focus from maximising 5G to exploring 6G applications
Liz Parry, CEO, Lifecycle Software
“By 2025, 6G development will be underway, with clearer definitions and early use cases emerging. Unlike 5G’s focus on speed and low latency, 6G will push boundaries with up to 1 Tbps speeds, terahertz frequencies, and sub-millisecond latency, enabling advanced applications requiring ultra-fast data transfer and massive bandwidth.
“6G will prioritise AI-driven optimisation, energy efficiency, and edge computing, enabling real-time processing and smarter networks. It will redefine industries with unprecedented speed, precision, and connectivity, supporting immersive technologies like extended reality (XR), global coverage, and sustainable solutions.
“Emerging use cases include haptic internet for remote surgery and retail, autonomous drones and vehicles, and self-managing smart city infrastructure. Despite its potential, challenges like infrastructure readiness, spectrum allocation, and cybersecurity must be addressed to unlock innovations far beyond 5G.”
