Capgemini SE

12/23/2024 | News release | Archived content

Telecom Predictions: Trends to watch in 2025

Telecom Predictions: Trends to watch in 2025

Praveen Shankar

Dec 23, 2024

As we start into 2025, the ever-dynamic telecom industry finds itself at yet another crossroads. It is set to explore new ways of working, unlocking new revenue streams, optimizing operations, and enhancing capabilities.

Here are my top five predictions for 2025:

1. The Quest for Revenue Growth Will Intensify

Despite significant investments in networks, growth has remained elusive. In 2025, telcos will leave no stone unturned to explore every possibility for growth, ranging from advanced connectivity and network solutions…to digital services, security, Sovereign AI Cloud and edge….and industry specific solutions.
Successful Telcos will be the ones who instead of going alone…will put collaboration at the heart of their growth strategy…. recognising their role within the ecosystem and co-creating solutions for real customer needs by leveraging the collective expertise of partners.

2. Satellite Companies Will Move into the Mainstream

Once on the periphery, they will become a significant part of the telecom landscape. Their subscriber base will rapidly increase owing to their global coverage, coupled with technological advancements enabling higher speeds, greater capacity, and now… lower costs. Their viability will move beyond just for remote areas to many mainstream underserved areas.
Telcos must not overlook satellite companies or treat them as disrupters…they are valuable allies. Creating hybrid solutions combing terrestrial, and satellite to deliver seamless global services…will unlock mutual growth.

3. Cybersecurity Will Ascend to a Top Priority

Telcos are a critical national infrastructure and the backbone of the digital economy. With networks becoming more interconnected… devices and AI-driven solutions growing exponentially…the attack surface for cyber threats will expand rapidly. This will in turn bring increased demand of robust security measures from regulators and customers.
Telcos can either treat cybersecurity as a compliance checkbox to stay out of trouble or can turn this challenge into a strategic advantage….by investing in innovative and reliable cybersecurity solutions that will act as a differentiator.

4. Focus will increase on home markets and on simplification

Telcos will pursue further in-market consolidation, reevaluate their international operations and rapidly get rid of non-core assets to reduce the drag on resources.
Additionally, they will accelerate efforts to delayer, simplify their offer portfolios, systems, and processes to become agile and match fit.
The key for telcos will be to avoid short-term "band-aid" fixes and reimagine themselves. Caution will be necessary in defining core and non-core assets to ensure they retain their "family silver."

5. Data and AI Will Return to the Center Stage

Telcos have access to huge data. Yet, when it comes to extracting value from that data, they lag behind. This year they had fallen behind in data mastery, surpassed by eight of the eleven industries surveyed by us, compare to them leading the pack in 2020.
In 2025, telcos will refocus on data and AI, making them the bedrock for optimising operations, reducing costs, personalising customer experience, and unlocking new revenue streams.
To achieve this, telcos will have to establish a robust data foundation, starting with a comprehensive data estate. They will need to relentlessly focus on execution, scaling AI, and adopting a fail-fast, learn-fast mindset.

Praveen Shankar, Global Head of Telecommunication at Capgemini dives deeper on each of these trends and its impact on the telcos. Watch the full video here.

Telecom Predictions for 2025

00:21 The quest for revenue growth will intensify

01:04 Satellite companies will move into the mainstream

01:48 Cybersecurity will ascend to a top priority

02:34 Focus will increase on home markets and on simplification

03:16 Data and AI will return to the center stage

04:08 Summary

Meet the author

Praveen Shankar

Global Head of Telecommunications

With more than 20 years of experience in the Telecommunications industry, Praveen has been at the forefront of navigating the journey to unlock the next generation of digital solutions and accelerating transformation in Telecoms. Over the course of his career he has developed a proven track record of driving transformation, delivering innovative business solutions, increasing revenues, and creating value for clients and partners.

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