The telecommunications (telecoms) industry is in the midst of a transformational phase. Technologies such as Artificial Intelligence (AI), network slicing, network Application Programmable Interfaces (APIs), and cloud computing hold immense promise for operators and enterprise users. While the light at the end of the tunnel is within sight, there are still several kinks to iron out before the industry fully reaches the next stage of 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 molding the future of the telecommunications industry include:
- AI And Automation Will Propel Cloud-Native Networks
- New Devices And AI Will Redefine 5G Traffic Patterns
- Green Antennas Will Lead Sustainable Transformation
- Traditional Telco Vendors Will Have To Partner Or Risk Peril
- Network Apis Will Face Monetization Challenges
- Automation And AI Will Redefine Open RAN
1. AI and Automation Will Propel Cloud-Native Networks
As telco operators transition to 5G Standalone (SA) cores, AI and network automation will play a central role in modernizing legacy systems. Most brownfield operators are still navigating outdated infrastructure or investing in 5G New Radio (NR), making interoperability essential.
In 2025, telco vendors will focus on cloud-native solutions designed to bridge the gap between legacy systems and future-ready networks. AI tools will help operators assess cloud readiness and optimize migration strategies.
Companies like Nokia and Red Hat are already leading in developing platforms that guide operators toward cloud-native implementations. These innovations will improve efficiency and accelerate operators' journeys to modern network ecosystems.
2. New Devices and AI Will Redefine 5G Traffic Patterns
With the rise of smart glasses, enterprise drones, and other forward-looking technologies, uplink traffic demands are set to grow in 2025. These devices will fundamentally alter how telco networks are designed and dimensioned. For example, Ray-Ban smart glasses generate substantial uplink traffic, requiring operators to reallocate network resources.
In the enterprise space, drones and other AI-driven applications will demand high uplink capacity for telemetry and real-time operations. Chinese operators, being early adopters of 5G SA networks, are already showcasing the potential of network slicing and priority packages. Other telco providers must adapt quickly to these shifting traffic patterns to meet growing customer demands.
3. Green Antennas Will Lead Sustainable Transformation
Sustainability will be a defining trend in the telecoms industry in 2025, with green antennas taking center stage. These energy-efficient antennas minimize power consumption and reduce visual and environmental impact, aligning with operators’ goals to lower carbon emissions.
As base stations and antennas account for 57% of power consumption in passive antenna networks, vendors are focusing on improving Radio Frequency (RF) efficiency. With a growing operator appetite for eco-friendly solutions, green antennas will play a critical role in 5G expansion, while supporting broader sustainability targets.
4. Traditional Telco Vendors Will Have to Partner or Risk Peril
The year 2025 will be a pivotal one for traditional telco vendors as they navigate a changing market. Infrastructure providers will need to address untapped 5G opportunities in emerging regions such as Africa, Latin America, West Asia, and Eastern Europe. These markets are primed for direct 5G-Advanced deployments, bypassing costly Non-Standalone (NSA) setups.
In mature markets like North America and Western Europe, vendors face slowing Capital Expenditure (CAPEX) as 5G rollouts flatten. To stay competitive, they must forge partnerships with AI-focused firms, combining network expertise with AI-driven monetization solutions.
Chinese vendors, however, will be an outlier as they maintain a vertically integrated approach. Chinese telco vendors will continue to take an End-to-End (E2E) approach by leveraging proprietary AI technologies such as in-house models, computing resources, and chipsets.
5. Network APIs Will Face Monetization Challenges
Despite the growing buzz around network APIs as a driver of 5G monetization, their financial potential remains limited for now. The slow adoption of 5G SA networks, which offer more advanced API capabilities like network slicing, continues to hinder progress.
Another challenge lies in engaging developer communities to create applications leveraging these APIs. Additionally, technical complexities in scaling and monetizing diverse API types (e.g., Quality-on-Demand (QoD) and edge discovery) present barriers. While the long-term outlook for network APIs is promising, 2025 will primarily serve as a foundational year for establishing their broader adoption and utility.
6. Automation and AI Will Revitalize Open RAN
Open Radio Access Network (RAN) vendors will gain traction in 2025, supported by advancements in automation. Tools like Service Management and Orchestration (SMO) and Non-Real-Time RAN Intelligent Controllers (Non-RT RICs) are modernizing legacy systems, enabling the adoption of 5G capabilities such as network slicing.
To gain acceptance, Open RAN solutions will need to prove their interoperability with traditional RAN systems. Major vendors are investing heavily in automation to accelerate deployments and demonstrate the commercial viability of Open RAN. This progress will be critical for operators considering large-scale Open RAN adoption.
Conclusion
The telecoms sector is on the cusp of significant transformation. From democratizing AI in network operations to advancing sustainability goals with green technologies, 2025 promises to shape the future of telecommunications. In an increasingly competitive industry, operators and vendors alike can keep their heads above the water by achieving innovative capabilities and aligning portfolios with the evolving needs of customers.
To learn more about how these trends will impact the industry, download ABI Research’s 2025 technology trends whitepaper.
