From Foundation to Future: 2025 Marks a Transition Year for Telcos

The Road Ahead

As telco investments accelerate in AI, 5G Advanced, cloud native technologies and billing transformation, the operator landscape in 2025 will be defined by adaptability and innovation. Collaboration with partners and industry bodies will play a crucial role in navigating the growing ecosystem of players that are enabling meaningful growth beyond connectivity. 2025 marks a pivotal shift where industry leaders see early returns on years of infrastructure investment and those elusive new revenue streams start to materialize.

Here’s what MATRIXX forecasts for the industry’s transformation this year.

1. Making Money with AI

Telcos have been pursuing numerous AI initiatives to streamline operations and enhance customer experiences. In 2025, the focus will widen to providing robust AI infrastructure for other organizations. Telstra’s CEO Vicki Brady recently highlighted this trend, emphasizing that telcos have a critical role in supporting global AI workloads.

This shift presents a massive revenue opportunity. However, to capture its full potential, telcos must move beyond technical implementation and adopt value-based and outcome-based pricing models. The industry’s future will depend not just on delivering AI capabilities but on creating profitable billing structures that align with customer outcomes.

2. 5G Advanced: Superfans Get Ready

This will be a pivotal year for 5G Advanced, with widespread deployment of standalone (SA) 5G networks. As telcos refine business models, they’re uncovering new revenue streams, particularly in enabling site-specific event media operations. One example is CelcomDigi, who demonstrated the power of 5G Advanced at the Malaysian Games (SUMKA 2024), providing a seamless network experience for live broadcasters. Similarly, O2 Germany is conducting trials to support broadcasters across multiple venues, showcasing the nationwide network’s capabilities.

5G Advanced gives telcos an immense opportunity to transform the media landscape. The challenge lies in commercializing these services by fostering collaboration among broadcasters, content creators, venues and event organizers. Success will hinge on creating innovative pricing and partnership models that maximize the value of site-specific connectivity.

3. Billing Is All the Rage. Really.

Billing and payments, once considered back-end necessities, have moved front and center in the digital economy. Companies like Stripe and Adyen have elevated payment capabilities into competitive differentiators. The growing complexity of global transactions and the demand for seamless digital experiences have made billing innovation essential.

For telcos, this trend underscores the need to modernize their billing stacks. While other aspects of digital transformation have taken precedence, billing modernization will be critical in 2025. By adopting flexible, real-time billing solutions, telcos can up their game with the digital generation(s) while streamlining their internal cost structures.

4. Cloud Native Standards Fortify

Cloud native principles promise scalability, resilience and agility — all essential for the next-generation telecom network. Simply containerizing network functions does not make a network cloud native. Instead, it requires a holistic approach, including:

• Deploying automation for seamless scaling
• Building resilience into system architectures
• Ensuring consistent application of best practices across the network

A key challenge for telcos is objectively evaluating vendors’ 5G Core network functions against cloud native criteria. Without standardized assessment frameworks, evaluations risk being inconsistent, undermining the return on investment.

In 2025, we expect increased collaboration between telcos and industry bodies like the Cloud Native Telecommunications Initiative (CNTi). These organizations are working to define clear evaluation criteria, ensuring telcos can confidently advance their cloud native transformations.

5. MVNO Business Models Still Hot

The mobile virtual network operator (MVNO) landscape is having a “moment”, driven by the trend of personalization. In the current MVNO reboot, lifestyle brands will integrate mobile services into their offerings to strengthen their customer connections, as seen with examples like Roccstar Wireless, Uber Cel and AC Milan Connect. By leveraging disruptive business models, these brands will subsidize mobile services as part of broader loyalty programs or subscription bundles.

Branded mobile services will increasingly differentiate themselves through advertising-based models and exclusive perks. This shift creates a compelling alternative to traditional offerings as customers seek mobile experiences that reflect their identities and lifestyles.

Here’s to the Next Five Years

MATRIXX anticipates that the year ahead will be a defining chapter for the industry’s evolution — a time when bold business model transformations pave the way for a more connected, intelligent and personalized world. By embracing these trends, telcos can unlock new revenue streams and solidify their position as enablers of the digital economy.

If you’d like to connect, I’d love to hear from you. Feel free to reach out with your thoughts, feedback or just to say hello!

Jennifer Kyriakakis
Founder, Chief Marketing Officer