Telecoms companies (telcos) powered the mobile revolution, yet much of the profit ended up with platform providers and app developers. Now, as generative AI becomes a top priority for businesses across every sector, telcos must capture the value that is being created.
The spotlight on AI is moving from building models to delivering real-world solutions. To avoid being sidelined again, telcos need to think beyond networks and internal tools. The most promising opportunity lies in building and delivering AI services that help businesses to solve problems, improve outcomes and grow.
Learning from the mobile boom
When smartphones took off, telcos focused narrowly on infrastructure. They kept networks running but ceded much of the value creation to others. This time, however, they have a chance to play a much bigger role.
By acting as trusted digital transformation partners – guiding customers on how to apply AI, integrate it into existing systems and by providing tailored systems – telcos can move up the value chain. That starts with recognising how the AI value chain is changing from infrastructure to platforms and services. Telcos must align their services with what businesses need most, which means providing safe ways to experiment, straightforward integration and a clear return on investment.
Many have approached generative AI as a tool to boost internal efficiencies. While improving productivity is a sensible starting point, it is not a growth strategy. To achieve lasting gains, they need to go further and use AI to build services that can solve real challenges for businesses across industries, whether that’s reducing unplanned downtime in logistics through predictive analytics or helping healthcare providers optimise patient flow and resource use with real-time data.
Moving towards edge-native AI
As AI becomes more responsive and involved in day-to-day operations, it needs more computing power. While model training remains centralised, the real potential for growth is in inference – the process of running AI models in real time, so that decisions can be made instantly. In many industries, like manufacturing, healthcare and logistics, this now needs to happen closer to where data is created – at the edge – to meet strict requirements around latency, compliance and data sovereignty.
This plays to telcos’ strengths. Their networks are already built to deliver low-latency performance and meet strict security and compliance standards. But capitalising on this moment requires more than upgrading infrastructure. It requires a platform approach, with AI-environments where businesses can experiment safely, scale quickly and maintain trust in how their data is managed. Telcos that deliver edge platforms integrated into enterprise ecosystems will be far better positioned to monetise the AI boom.
Meeting enterprise demand
Enterprise adoption is accelerating but returns on investment remain elusive. Over 65% of communication service providers have a defined AI strategy, yet many still focus primarily on internal applications. Meanwhile, businesses are calling for more scalable, secure and industry-specific solutions – and many feel those needs aren’t being met yet.
This creates an opening for telcos. Trust is the key differentiator. Businesses will only embrace AI services that are transparent, sovereign and responsible. By building solutions that keep humans in the loop – ensuring oversight while AI accelerates outcomes – telcos can strengthen their reputation as trusted partners. Over time, this positions them to lead the next wave of AI adoption, from productivity tools to tomorrow’s sector-specific intelligent agents.
For telcos, they’ll unlock new revenue streams, from AI-as-a-service platforms to sector-specific managed edge offerings. The focus must be on delivering measurable outcomes, rather than just connectivity.
Why openness matters
No single company can do it all. The most successful players are those focusing on solving real problems rather than competing to build the biggest model. For sectors like healthcare, transportation and industrial automation that means improving operating room scheduling in hospitals, reducing delays in public transport networks, or preventing equipment failures on factory floors.
For telcos, this means working with model providers, cloud players and domain experts to co-create solutions. It also means adopting open, flexible platforms that allow AI to be integrated into complex enterprise environments. Trust and interoperability is key. The goal should not be to own every part of the stack, but to play a central role in the delivery of secure, outcome-driven AI services.
From enabler to value creator
The last time telcos powered a major tech shift they built the infrastructure but missed out on the commercial upside. With generative AI, they have a chance to avoid repeating that pattern.
To win in the AI era, telcos will need to stop thinking like service providers and start acting like solution partners. Those that set a clear vision, take a platform approach and build on their trusted position will be best placed to grow and lead. By focusing on helping businesses solve real problems, using trusted, scalable AI services, telcos can move from enablers to value creators, and secure their place at the centre of the AI value chain.
