The telecommunications (telecoms) industry is in the midst of a transformational phase. Technologies like Artificial Intelligence (AI), network slicing, network Application Programmable Interfaces (APIs), and cloud computing are setting the stage for a digital revolution. As the telecoms sector moves forward, business models are evolving, with an emphasis on next-gen network technologies and improved customer experience. Despite the progress, there are still challenges to overcome before the industry reaches its full potential in digital transformation.
To provide a snapshot of how the telecoms sector is responding to the latest technical demands, ABI Research shared several trends in its 101 Technology Trends That Will—and Won’t—Shape 2025 whitepaper. Some of the most prominent developments shaping the future of the telecom industry include:
- 1.) AI And Automation Will Propel Cloud-Native Networks
- 2.) New Devices And AI Will Redefine 5G Traffic Patterns
- 3.) Green Antennas Will Lead Sustainable Transformation
- 4.) Traditional Telco Vendors Will Have To Partner Or Risk Peril
- 5.) Network Apis Will Face Monetization Challenges
- 6.) Automation And AI Will Redefine Open RAN
1. AI and Automation Will Propel Cloud-Native Networks
The telecom industry is shifting towards more cloud-based solutions, and as telco operators transition to 5G Standalone (SA) cores, AI and automation are central to modernizing legacy systems. Most brownfield operators still navigate outdated infrastructure, making interoperability essential for seamless transitions.
As business models evolve, AI-powered tools will help operators assess cloud readiness and optimize migration strategies. Companies like Nokia and Red Hat are leading the development of cloud-native platforms that guide operators towards modern, agile network ecosystems.
These innovations will accelerate the industry's transformation and improve operational efficiency, giving operators the flexibility they need to meet growing customer demand for connectivity.
2. New Devices and AI Will Redefine 5G Traffic Patterns
With the rise of smart IoT devices, including smart glasses and enterprise drones, uplink traffic demands are expected to grow significantly. This shift will fundamentally change how telco networks are designed and dimensioned.
Devices like Ray-Ban smart glasses and drones will create heavy uplink traffic, requiring operators to reallocate network resources. In the enterprise space, generative AI and edge computing will enable operators to manage traffic in real-time, ensuring optimal resource allocation. Network slicing and prioritization techniques will help operators meet these new demands and keep customer service levels high.
Companies in regions like China are already showcasing these capabilities, and other telcos must adapt quickly to ensure they stay competitive.
3. Green Antennas Will Lead Sustainable Transformation
Sustainability is a major focus in the telecom industry, especially as environmental regulations become stricter. In 2025, green antennas will take center stage, playing a vital role in reducing energy consumption and supporting operators' sustainability goals.
These energy-efficient antennas not only minimize power consumption but also reduce environmental and visual impacts, aligning with operators' efforts to lower carbon emissions. With antennas and base stations accounting for a significant portion of power consumption in traditional networks, the push for green antennas will be essential for expanding 5G coverage.
Operators will benefit from these advancements in sustainability while also improving customer experience and reducing operational costs.
4. Traditional Telco Vendors Will Have to Partner or Risk Peril
The telecom industry is evolving rapidly, and traditional telco vendors must adapt to remain competitive. As infrastructure providers target emerging markets in regions like Africa, Latin America, and Eastern Europe, where 5G-Advanced deployments are taking off, the demand for new business models grows.
However, in mature markets like North America and Western Europe, the telecom space is slowing down. To keep up, vendors must collaborate with AI-focused firms, integrate generative AI tools, and provide cloud-based, customer-focused solutions. Partnering with edge computing companies will also help vendors streamline operations and offer AI-powered services to clients. Those who fail to forge strategic partnerships risk falling behind in an increasingly competitive market.
5. Network APIs Will Face Monetization Challenges
While network APIs are often touted as a key driver for 5G monetization, their financial potential is still limited. The slow adoption of 5G SA networks, which enable advanced API capabilities like network slicing, continues to hinder the pace of monetization.
Another challenge lies in engaging developer communities to build applications that leverage these APIs. As telecom operators expand their offerings, especially in customer service, they must overcome the technical challenges of scaling and monetizing diverse APIs such as Quality-on-Demand (QoD) and edge discovery.
Although the outlook for network APIs is positive in the long term, 2025 will remain a foundational year for establishing their broader adoption across the industry.
6. Automation and AI Will Revitalize Open RAN
Open Radio Access Network (Open RAN) solutions are expected to gain traction in 2025, thanks to advancements in automation and AI. As telecom operators look to modernize their infrastructure, AI-powered management tools like Service Management and Orchestration (SMO) and Non-Real-Time RAN Intelligent Controllers (Non-RT RICs) will help streamline operations and facilitate the adoption of 5G capabilities like network slicing.
To gain widespread acceptance, Open RAN solutions will need to prove their interoperability with traditional RAN systems. Major vendors are already investing heavily in automation to ensure rapid deployment and demonstrate Open RAN’s commercial viability. This is essential for operators as they look for more flexible, cost-effective solutions to support customer demand for connectivity.
Conclusion
The telecoms sector is on the cusp of significant transformation. With AI, automation, generative AI, and cloud-based networks driving the next phase of digital evolution, operators must continue to innovate to meet the rising demand for connectivity. Sustainability will be a driving force, with green technologies like energy-efficient antennas playing a key role in expanding 5G coverage. For telecom vendors to stay competitive, strategic partnerships and embracing AI-driven business models will be crucial. As the industry moves toward a more customer-centric approach, operators must prioritize enhancing the customer experience while embracing new technologies to drive operational efficiency.
To learn more about how these trends will impact the industry, download ABI Research’s 2025 technology trends whitepaper.
