With enterprise data consumption surging, the telecom sector is in a race against time to expand network capacity and enhance service reliability. The urgency is particularly evident in the lagging 5G network rollouts. To fully support applications like autonomous vehicles and smart cities, telcos must accelerate their pace. Additionally, telcos need to keep a close eye on alternative connectivity solutions like low Earth orbit (LEO) satellites, which are expanding internet access and market reach to previously unreachable locations.

As the industry pursues swift modernization, AI-driven processes, and rapid deployment of 5G network capabilities, telcos must focus on the following dynamics to unlock new value and growth in the coming year.

1. A tipping point for AI adoption

AI marketplaces have been vital for AI adoption in the telco industry and will continue to support faster, more reliable GenAI adoption in 2025. These marketplaces, like cloud platforms, are curated environments where telcos can buy and deploy pre-built AI tools and ready for implementation. This approach can save time and reduce costs by avoiding in-house development. However, telcos may also be able to sell their AI innovations through these marketplaces, contributing to a growing ecosystem where both solutions and tools are exchanged across the industry.

Integrating AIOps into these platforms will enable advanced network automation and self-optimizing capabilities, such as dynamic resource allocation, self-healing, and predictive maintenance based on network usage patterns. This enhances operational efficiency and ensures that telcos can scale services more effectively while maintaining high-quality standards through rigorous MLOps/DataOps 2.0 testing.

2. The push to monetize 5G

The value of 5G lies in enterprise use cases, particularly in sectors like oil and gas, manufacturing, and transportation, which require low-latency, high-bandwidth solutions. To monetize 5G, telcos should focus on sector-specific solutions. This involves offering tailored applications and services through 5G marketplaces and using network slicing to provide dedicated network segments to meet industry-specific demands. APIs like CAMARA, MEF, and TMF are essential for the smooth operation of 5G services across industries and will help telcos create an ecosystem that enhances integration and functionality.

3. Bridging the global connectivity gap

While nearly a third of the world still lacks reliable internet access, LEO constellations — led by Starlink, Eutelsat-Oneweb, and Amazon’s Project Kuiper — are scaling up rapidly. Starlink and Eutelsat-Oneweb are already providing services, and Project Kuiper aims to begin delivering commercial services by 2025, bringing high-speed, low-latency internet to previously unreachable regions. These LEO satellites, coupled with the integration of 5G and satellite communications (SatCom), will enhance mobile connectivity in remote areas by enabling smartphones and other devices to connect directly to satellites without relying on ground infrastructure. In 2025, some telecom operators can leverage the combination of GEO (geostationary Earth orbit) and LEO networks to enter new markets, create revenue streams, and bridge the global digital divide.

4. The rise of autonomous operations

As telecom networks become more complex, the push for autonomous operations is increasing. AI/ML and data-driven technologies enable telecom operators to optimize network management, streamline operations, and meet changing demands. The rise of autonomous operations promises to improve the profitability of telecom companies, even as revenues plateau in some markets. In its work with BT Group, for example, Wipro used AI to develop a mobile tower infrastructure database that streamlined data management and sharing by automating the extraction and migration of critical lease, site survey, and antenna details into a centralized platform. The move has increased efficiency, paving the way for cost savings. It’s also shifted focus to more strategic, value-adding activities within telecom operations.

Many telcos are already transitioning from semi-automated systems to fully autonomous ones. In 2025, companies will ramp up efforts, employing AI-driven automation for routine tasks. This transition, while not without its challenges, holds immense potential. At the same time, they will need to navigate challenges like data quality and system integration, which can limit AI's effectiveness if not properly managed. While AI systems can help improve efficiency, they also require substantial energy, which can impact sustainability goals.

5. The future of cloud-native networks

Although companies have steadily migrated IT workloads to the cloud, many network functions operate on outdated hardware. Throughout 2025, more telecom companies will transition to cloud-native networks, which can run across public cloud platforms, allowing them to innovate and scale faster. Virtualized network functions (VNFs), software-defined networking (SDN) components, and network slicing for 5G are among the use cases most ripe for cloud migration. Additionally, AI and machine learning algorithms for network optimization and edge computing services are expected to see increased migration to cloud environments. Unified Communications as a Service (UCaaS) is also anticipated to move increasingly to the cloud, supporting the growing demand for scalable, flexible communication solutions.

6. Sustainability as a strategic imperative

In 2025 and beyond, telecom operators will need to focus more on green communications and building sustainable, energy-efficient networks. This is not just a trend, but a pressing need. It includes adopting renewable energy sources, minimizing emissions, and investing in infrastructure that reduces energy consumption. Rather than a one-off initiative, green communications represent a long-term transformation to create networks that are both environmentally responsible and aligned with next-generation telecom services.

For most telecom companies, the most significant current business challenges are staying competitive in a rapidly changing market, meeting the evolving demands of enterprise clients, and fostering continuous innovation. To address these, telcos must prioritize AI-driven automation, modernization velocity, and network platforms with 5G slicing capabilities to offer industry-specific solutions like intelligent manufacturing and connected healthcare services. Building solid partnerships with cloud providers, AI providers, and key industry players is crucial for scaling these innovations and meeting customer expectations. By embracing technological advancements and strategic collaboration, telcos can establish themselves as leaders in the next phase of telecom's evolution and boost demand without economic headwinds.

About the Authors

Padman Kumar
General Manager and Global Practice Leader, Communications and Media, Wipro Consulting

Subratha Pathak
Partner and Europe Leader, Communications and Media, Wipro Consulting

Contact Us