What’s next for telecoms: 7 key trends and takeaways from MWC 2025

The telecom industry has arrived at a pivotal moment. From the rise of agentic AI and the acceleration of satellite connectivity to ongoing network transformation and connected industries initiatives, telco leaders find themselves navigating a landscape rich in both complexity and opportunity.

At the same time, geopolitical tensions are adding another layer to the uncertainty, as government transitions around the world are reshaping supply chains, trade relationships, security policies and regulatory frameworks. MWC25 underscored the importance of urgent action to address these new dynamics and remain agile in an evolving landscape.

At this year’s event, our experts were on the ground to explore how emerging technologies, evolving partnerships, and new monetization models are reshaping and redefining the future of the industry. In this recap, we break down the seven key trends illuminating the path forward—and what they mean for telecoms looking to simplify operations, unlock growth, and stay ahead in a shifting world.

1. Embrace every manifestation of AI with a strong focus on security

Agentic AI is emerging as the next frontier in telco innovation, enabling systems that can make decisions and solve complex problems with minimal human oversight. This new level of autonomy is helping companies to dramatically increase operational efficiency and realize the promise of self-optimizing networks.

For example, at this year’s event Telenor and Ericsson unveiled an agentic AI system designed to optimize RAN capacity and power usage. By designing its own workflows and executing actions independently, this application marks a significant step toward autonomous network management.

But there is far more to the AI equation than agentic applications, especially when it comes to customer experience (CX) and field services use cases. Huawei, for example, demonstrated an AI contact center (AICC) that blends avatar-driven video guidance with backend tools like automatic FAQ generation and agent co-pilots to improve the user experience and drive efficiency. Meanwhile, Orange’s FiberRootCause AI ready tool automates fiber optic troubleshooting, reducing technician diagnosis and cutting down response times.

2. Capture growth beyond core connectivity

Growth continues to be the most critical challenge for telcos. While 5G was once expected to be the industry’s biggest revenue driver, the reality has been more complex. High costs, as well as the operational demands of deploying 5G Standalone (SA) infrastructure have made it difficult for many telcos to unlock the full monetization potential of this technology.

This has left telecom providers looking for ways to expand their growth strategies into adjacent, fast-emerging technologies. For example, Sovereign AI Cloud is gaining traction, offering secure, localized data capabilities that meet regulatory demands while enabling telcos to become trusted enablers of AI services. Telcos are also exploring the revenue potential of Extended Reality (XR) applications to create immersive consumer experiences and offer next-gen B2B services.  

Finally, cybersecurity also remains a high-growth area as enterprises increasingly turn to telcos for comprehensive protection and security solutions. In fact, our recently published B2B Pulse report from the Capgemini Research Institute found that more than half of organizations (53%) are willing to invest in telecom tech services such as implementation of advanced cybersecurity solutions, including AI-driven security, zero trust models and quantum-resistant encryption in the next 1–2 years. By embedding these cybersecurity services into core offerings, telcos can meet evolving customer demands and strengthen long-term revenue streams.

3. Realize the promise of connected industries leveraging the ecosystem play

The telco industry is becoming far more interconnected. Case in point: Just over half of this year’s MWC attendees hailed from non-telecom sectors. For telcos, this means that growth and value creation are increasingly tied to strategic partnerships and cross-industry collaboration.

A major area of focus at this year’s event was network API monetization. These APIs are the backbone of programmable networks, enabling third-party developers to tap into real-time network capabilities and embed them into their services. For instance, Orange and Colt showcased a live Quality on Demand (QoD) demo at the GSMA Open Gateway, using APIs to dynamically optimize network performance for applications.

To accelerate adoption and solve the integration challenge, new go-to-market models are emerging. Ericsson launched Aduna, an aggregation platform built on the CAMARA open-source framework, to offer a unified interface for developers accessing APIs across multiple operators. Early partners include industry leaders like Vodafone, AT&T, Deutsche Telekom, Bouygues Telecom among others, demonstrating the industry’s collective commitment to simplifying developer engagement.

Meanwhile, telcos are becoming deeply embedded in mission-critical infrastructure, powering secure, real-time operations across sectors. This shift is unlocking high-value opportunities throughout the value chain—especially in finance, media, manufacturing, and defense. The defense sector, in particular, is emerging as a major growth driver, with global investment projected to reach $13 trillion, much of it tech-related, by 2030.

4. Simplify. Digitize. Repeat

At Capgemini, we like to think of digitization and simplification as two sides of the same coin. As operators advance their modernization efforts, they must also actively manage the complexity that accompanies these tech initiatives.

For example, the integration of agentic AI into telecom business support systems (BSS) represents a significant leap forward for the industry. By introducing AI agents into the ecosystem, telecom companies can simultaneously improve efficiency and enhance the experience through seamless collaboration, autonomous decisioning and intelligent innovation.

For instance, Totogi’s BSS Magic platform uses a telco-specific ontology to generate customized BSS environments on demand. Through a conversational interface, users can request new services or products, and the platform will dynamically generate a digital twin of the necessary processes, identify the right agents, and launch forecasting, contracting, and fulfillment operations—all without manual coding.

Meanwhile, hyperscalers like Google Cloud and AWS are doubling down on simplifying network operations through automation and edge solutions. For example, Bell Canada partnered with Google Cloud to launch an AI-powered network operations solution that uses advanced AI/ML to detect and resolve issues faster and boost network performance. AWS, meanwhile, unveiled a new version of its Outposts hardware, which is designed for intensive workloads for AI, and a server version to run on-prem 5G core functions, like RAN CU and RAN DU workloads.

5. Drive the next wave of network transformation

Advancing technologies like autonomous networks, cloud, and Open RAN offer tremendous potential to transform networks—but challenges around deployment readiness, interoperability, and ROI remain.

For example, autonomous networks are beginning to deliver real value through AI-driven automation, observability, and error detection. While many use cases today are still limited to network operations centers, they are establishing a critical foundation for smarter, more self-governing infrastructures.

Cloud adoption is also reshaping telecom architecture. With the rise of hybrid cloud models and AI-enhanced orchestration, operators are gaining new levels of flexibility, scalability, and real-time responsiveness—key enablers for future self-optimizing networks.

Meanwhile, Open RAN shows plenty of promise even if progress may be limited. On one hand, no major commercial launches were announced this year and deployments continue to be dominated by incumbent vendors. On the other, the AI-RAN Alliance marked its first full year with ten demonstrations across areas like performance optimization and edge AI workload deployment.

The takeaway? Sector transformation is underway, but unlocking its full value will require bold shifts in models and mindsets, as well as continued investment in deployment maturity, ecosystem collaboration, and business alignment.

6. Extend the reach of your networks with satellite connectivity.

With more than 100 telecom operators now engaged in satellite partnerships and approximately 70% of the global mobile base expected to be covered by hybrid terrestrial-satellite networks by the end of 2025, satellite connectivity is an essential pillar of the telecom ecosystem.

Further, direct-to-device (D2D) innovation, which allows mobile devices to connect directly to satellites without specialized hardware, is expanding coverage and opening the door to new IoT-driven applications in sectors like logistics, agriculture, and aviation. The first commercial D2D offers are anticipated to launch this year, further bridging the connectivity divide and ensuring seamless global access.

7. Embed sustainability as a standard, not as a standout

Sustainability is no longer a buzzword—it’s a baseline. At MWC25, it was clear that environmental responsibility is becoming embedded into every facet of the telecom industry, from AI and IoT solutions to 5G and digital inclusion.

The findings from Capgemini Research Institute’s latest report, Driving business value through sustainability also goes to prove that telecom industry continues to consider sustainability as a top priority — with the telecom industry ranking second among other industries that consider sustainability a top priority.  Sustainability has truly become part of the industry’s DNA .

GSMA emphasized that achieving net-zero remains a central objective, driven not only by climate goals but also by rising energy costs, ESG reporting requirements, and operational efficiencies made possible by AI. For telecom organizations, the pressure is on to keep innovating and lead the charge to a greener future.

Reimagining telecoms with Capgemini

MWC25 offered a compelling glimpse into the future of the telecom industry—one defined by AI-led innovation, bold infrastructure shifts, expanded cross-industry value creation, and stronger collaboration across the ecosystem. As the industry looks for new growth opportunities, the leaders will not only embrace these trends but also inspire the next wave of change.

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TelcoInsights is a series of posts about the latest trends and opportunities in the telecommunications industry – powered by a community of global industry experts and thought leaders.