How AI, cloud-native platforms, and programmable infrastructure are redefining telecom networks—and unlocking new value across industries. Welcome to part two of our “Engineering Smart Networks & Operations” mini-series.

The telecom industry stands at a pivotal moment in its evolution. The world’s appetite for connectivity continues to grow, but the economics of running traditional, siloed networks are increasingly unsustainable. Operators have long relied on vertically integrated network stacks from multiple vendors, each with its own management tools, interfaces, and operational models. This lack of interoperability drives up initial capital expenditure as well as downstream operational expenditure, and slows innovation. Today, as networks become the foundation for digital industries, operators are rethinking their infrastructure from the ground up. Their move toward AI-enabled, software-defined, cloud-based, and data-driven platforms promises flexibility, agility, increased monetization of existing infrastructure, and brand new revenue streams.

This transformation is not just a technology upgrade. It is a strategic shift that positions telecom operators at the forefront of a new wave of industry innovation, one powered by intelligent, adaptive network infrastructure capable of delivering smarter services, enabling AI-driven business models, and opening new paths to growth.

Breaking Free from Complexity

Historically, telecom networks have grown in vertical silos, each managed separately, often with proprietary tools and custom interfaces. Every new vendor introduced or new technology generation added, increases complexity, making integration and management more expensive. Operators are now recognizing that future competitiveness depends on network transformation that breaks down these silos and embraces a horizontal, software-driven architecture that spans across the network.

One of the key benefits of moving to cloud-native, programmable infrastructure is that operators can standardize operations, unify control, and streamline service delivery. This horizontal approach supports the adoption of carrier-grade DevOps practices, enabling continuous integration, automated testing, and agile deployment so new services can be launched faster and more reliably. It also promotes a more holistic and less fragmented way of observing the network, allowing operators to monitor performance, anticipate issues, and automate responses. Since network complexity often causes erratic performance and complicates troubleshooting, software-based programmable networks are advantageous as they provide fine-grained control over traffic flows to ensure better quality of service. At the same time, growing threats to telecom networks demand greater visibility and stronger security. Programmable networks address this by enabling segmentation, which helps contain breaches and limit lateral movement within the network.

The Rise of AI-Driven Operations

Yet this is just the tip of the iceberg. The next stage in this transformation is the integration of artificial intelligence into every layer of network operations. AI and automation are transforming how networks are monitored, maintained, and optimized. Instead of relying on manual processes, operators can now deploy AI agents that continuously help them learn from network data so they can predict faults faster, secure, and optimize performance dynamically.

These AI-driven networks are not only more resilient but also more secure. Machine learning models can detect anomalies, prevent potential intrusions, and safeguard against fraud, enhancing existing human oversight. Predictive maintenance reduces downtime and extends asset life, while intelligent orchestration ensures that resources are used efficiently, reducing energy consumption and operational costs. AI-driven optimization can also help with rapid fault detection, zero-touch provisioning, and even enable networks to ‘self-heal’.

Unlocking New Revenue Models

This software and data-driven network transformation also unlocks new services telecoms operators can offer to industry. They are no longer limited to selling connectivity and this is already increasing dramatically as the network changes. Now they are able to offer new products such as Network-as-a-Service (NaaS), API-based data services, and AI infrastructure platforms, each providing value to industries seeking digital agility and intelligence. Let’s look at each of these in turn to better-understand what these newly enabled opportunities mean for the industry users, as well as the operator:

In the NaaS model, enterprises can self-provision, manage, and scale network resources on demand, much like they consume cloud compute today. This flexibility enables businesses to align network usage with operational needs, whether it’s a logistics company scaling connectivity during peak delivery periods or a manufacturer optimizing bandwidth for real-time quality monitoring. It’s no different to an energy company adjusting pricing during surge and lull periods of demand.
 
Several operators are piloting NaaS offerings, experimenting with different levels of automation and self-service portals. While market demand is still evolving, early adopters see strong potential in sectors that require rapid scaling and localized control, such as smart factories, healthcare facilities, and large retail operations.

Another growing opportunity lies in exposing valuable network data through APIs. Telecom operators hold a wealth of information. From device location and network quality metrics to SIM swap detection, this rich data can provide powerful insights for other industries. For example, banks can use SIM swap data to prevent account takeovers, automotive manufacturers can optimize connected vehicle experiences based on real-time network conditions, and app developers can personalize services using verified location data.
 
By securely exposing these datasets, operators can create entirely new revenue streams that extend far beyond connectivity. Though it is worth noting that the success of this model depends heavily on open, standardized interfaces and strict data governance.

As enterprises race to adopt AI, many face significant challenges around data sovereignty, latency, and the high cost of building AI platforms from scratch. Telecom operators, with their distributed edge infrastructure, trusted data management capabilities, and secured carrier-grade networks, are uniquely positioned to address these challenges. By offering AI infrastructure as a service, operators can provide localized, secure environments for model training and inference, connecting enterprises to sovereign AI infrastructure hosted by telcos and enabling them to harness AI closer to where data is generated.
 
For example, a hospital network might use an operator’s AI platform to process medical imaging data securely on-site, ensuring patient privacy while reducing the need to transfer sensitive data to the cloud. Similarly, a logistics company could leverage AI to complement human efforts to optimize delivery routes in real time based on local conditions.

New experiences in smart manufacturing through real-time monitoring, predictive maintenance, and robotics control can be enabled through networks that have experienced this level of transformation. Secured healthcare services such as remote diagnostics, secure data transmission, and connected devices also benefit. Retail customers can provide personalized experiences, footfall analytics, and inventory tracking.

Real Value for Every Industry

The benefits of this new network transformation extend far beyond telcos. In manufacturing, software-defined and AI-driven networks enable ultra-reliable connectivity for robotics and automation, supporting flexible production lines that can be reconfigured in minutes. In transportation, predictive analytics and edge AI enhance fleet management and safety. In media and entertainment, dynamic bandwidth allocation ensures seamless streaming and immersive experiences.

Even the public sector stands to gain, with smart city applications using programmable networks to manage traffic, utilities, and public safety more efficiently. Across all these sectors, the network is no longer a fixed asset, it becomes an intelligent platform that adapts to the needs of the business in real time.

From Transformation to Innovation

The journey to a software-defined, AI-enabled network is complex, but the rewards are profound. Operators that embrace this transformation are not simply modernizing their infrastructure; they are building the foundation for new industries, partnerships, and sources of value.

Capgemini Engineering is helping make this transformation a reality by working with leading network equipment vendors and telecom operators to drive large-scale network modernization from architecture and design through deployment, management, and optimization. By embedding intelligence, automation, and cloud-native software into network products and platforms, we help create programmable, interoperable, and AI-enabled infrastructures that evolve in real time with business needs. Our deep domain expertise in orchestration, automation, and data-driven operations enables operators to build smarter, more agile networks and unlock new value through innovation and service differentiation.

For example, Capgemini Engineering helped a global telecom provider speed up the rollout of new network functions, reducing delivery times from months to just weeks through smarter automation. We also worked with a leading US-based telecoms operator to design and deploy an AI-driven network optimization solution that improved customer experience and reduced congestion in high-traffic areas by over 30%. And we are collaborating with a global chip provider to showcase how artificial intelligence can make mobile networks more efficient and ready for future technologies such as 6G. These projects demonstrate how Capgemini turns complex network challenges into real results that benefit businesses and customers alike.

The future of connectivity will not be defined by bandwidth alone. It will be defined by intelligence, agility, and the ability to turn network data into meaningful action. Operators that seize this opportunity will lead not only in operational efficiency but also in shaping the next wave of digital innovation across every industry.

To learn more about how we engineer smart networks and networks operations, contact us at engineering@capgemini.com