"According to the warning from Apritel's chairman, the durability and financial backing of the telecom industry are under threat"
Telecom Operators Shift Focus from Price to Investment and Innovation
In the world of telecommunications, the conversation has shifted from the price of services to the investment being made in expanding and enhancing infrastructure, as well as the adoption of emerging technologies. According to António Coimbra, the President of the Association of Electronic Communications Operators (Apritel), this is the key concern that should be at the forefront of discussions.
Operators are channeling substantial investments into network expansion, 5G adoption, AI-driven personalization, and new business models that monetize these technologies across multiple industries. This strategic shift is a response to the increasing complexity and opportunity within the telecom sector.
Rising Investments in Network and Technology
The global spending on telecommunications reached an impressive $1.6 trillion in 2024, marking a 4.3% increase over the previous year. This trend is expected to continue into 2025, with much of the investment targeting the global 5G value chain, network expansion for better coverage and performance, and infrastructure refinement to unlock new business opportunities.
Focus on 5G Expansion and Next-Gen Connectivity
As of early 2025, over 2.25 billion 5G connections exist worldwide, with hundreds of providers launching and upgrading 5G services. Operators are also exploring 6G and satellite communications to extend coverage and capabilities, especially for rural and remote areas.
Enhanced Services and New Revenue Streams
Operators are leveraging AI and data analytics to offer personalized, seamless customer experiences and to monetize 5G through service-based models tailored to industry verticals such as healthcare, automotive, entertainment, and more.
Profitability Despite Challenges
While there is some revenue growth pressure, especially for rural carriers, profitability has generally improved, supported by universal service funding and customers’ continuing demand for reliable, high-speed broadband services.
Less Competition on Price, More on Value
The industry is moving beyond a narrow focus on service pricing competition toward delivering transformational technology-enabled services and expanding infrastructure that supports innovative applications and business models. This shift reflects the growing recognition that value, not just price, is what drives customer satisfaction and loyalty in the modern telecom landscape.
In conclusion, electronic communications operators are prioritizing investment in infrastructure expansion, technology advancement (notably 5G and AI), and innovative services to drive value and new revenue streams, rather than concentrating solely on lowering service prices. This strategic shift is a testament to the industry's commitment to technology leadership alongside service quality.
- Telecom operators are investing significantly in areas such as network expansion, 5G adoption, AI-driven personalization, and new business models, focusing on delivering transformational technology-enabled services and expanding infrastructure.
- The global spending on telecommunications continues to increase, with much of the investment targeted towards global 5G value chain, network expansion for better coverage and performance, and infrastructure refinement to unlock new business opportunities.
