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How will the telecoms industry save money in 2025?

Telecoms in 2025

Efficiency will likely trump expansion as the telecoms industry tries to save money in 2025. Arguably, there is no industry that dislikes uncertainty more than telecoms and the current economic climate promises a lot of uncertainty. So, how will the industry cope?

Telecoms operators will balance expansion against efficiency as uncertainty grows with economies, societal trends and technology. Economic pressures will likely spur cost saving initiatives like network asset consolidation and rectifying inefficient business models.

We’ll see explosions in AI network analysis, network virtualisation, and quantum communication solutions as Mobile Network Operators (MNOs) reduce costs. MVNO-in-a-box will be instrumental in leveraging 5G investment and eSIM for roaming will generate new revenue and cut roaming costs. At the same time, satellite communications will get heavy investment for long-term revenue growth.

What challenges await us in 2025?

There are several challenges in 2025.

  • Quantum computing threatens to supercharge cybercrime.
  • Internal right vs left politics is disrupting governance in several advanced/developed nations.
  • Developing nations will continue to struggle with inflation.
  • International tarrif impositions could hinder inflation reduction in developed nations.
data breach

All of this could make business management tricky and major investments riskier. The prudent step is to find ways to improve existing systems to save money while carefully investing in new undertakings.

How can the telecoms industry save money in 2025?

Following expensive 5G rollouts, 2025 telecoms investment will likely focus on network efficiency more that expansion. The telecom industry can save money in 2025 by using traffic and network management solutions and anti-cybercrime tools.

Minimising the cost of 5G

MNO’s must improve 5G network efficiency to reduce operating costs as they seek to leverage their 5G investments.

AI network automation and network virtualisation are two ways operators can minimise the cost of their nascent 5G networks and multi-generation core network functions.

  • AI network analysis improves traffic management and pre-empts maintenance events. Additionally, it allows MNOs to deliver bespoke packages for subscribers and upgrade customer services.

    AI-predicted traffic patterns enable network energy consumption to be reduced at specific time and in specific places. So, energy costs will come down and network management will become simpler and cheaper.

  • Network virtualisation allows rapid and easy maintenance, scaling, integration, and network configuration reducing physical network costs. Furthermore, the virtualisation of networks protects against physical network device destruction, greatly improves availability, and allows easier network segmentation. By replacing physical network components with virtualised components, operators will be able to massively reduce energy consumption and associated costs.
AI

Navigating cybercrime and security in a quantum world

Security will be front of mind for telecom operators in 2025 due to hacking by state actors and criminal gangs. Defending revenue from cybercriminals will require new solutions, system updates, and improved policies.

AI and quantum computing are big challenges for MNOs as it threatens to supercharge cybercrime. However, these technologies can also secure revenue by combatting cybercrime.

  • Quantum communication presents the next generation of telecom products and services. Its primary security feature is that data’s quantum stat alters if it’s so much as looked at while in transit. The change in quantum state will immediately alter operators of the attack.

    Later, quantum repeaters will enable quantum communication to operate at scale, and data transfer will be instantaneous. Till then, operators will offset investment costs by deploying hybrid-quantum solutions. Hybrid-quantum solutions will combine existing quantum and traditional computer solutions to protect against cyber fraud, and this is what we may see more of in 2025. 

Short-term, AI network analytics will protect revenue by combatting cyberfraud like artificially inflated traffic (AIT). New AI solutions to fraud are constantly in development. Fraud-pattern mapping is one of the main tools operators are wielding, but other innovations like O2’s AI granny are hurting criminals in new ways.  

AI granny

How can the telecoms industry make money in 2025?

We should see considerable growth in eSIMs and Mobile Virtual Network Operators (MVNOs) in 2025. Significant investment in Low Earth Orbit (LEO) satellite communications will also occur as operators seek to secure future revenue growth.

  • MVNO-in-a-box provides digital brands with the opportunity to increase customer loyalty through 5G mobile contracts. For MNO’s seeking to increase revenue, MVNO-in-a-box presents an opportunity to leverage their 5G network assets.

  • eSIM roaming could present the biggest socio-cultural shift in telecoms in 2025. Travel agents and network operators will team-up to offer new roaming options to travellers. This could create a huge cost saving opportunity for operators. eSIMs eliminate the impact of high tariffs in visited networks and the cost of currency conversion in transactions. eSIMs are also easy to obtain, as they are downloaded, increasing the likelihood of consumer uptake.

  • Low Earth Orbit (LEO) communication is the other hot topic of 2025 and where we may see considerable monetary investment. Elon Musk’s SpaceX subsidiary, Starlink, will face increasing competition from Amazon, Chinese operators, Europe’s IRIS2 and others in the LEO satellite communications realm.

    The Direct to Smartphone market of LEO satellite communication will probably have slow market growth due to market entry barriers like existing terrestrial infrastructure and significant investment costs. However, the technology is already in use, there are few competitors, and the market will undoubtedly be huge in the future. So, operators will likely make big investments in 2025 to secure their future market positions.

Hot or not in 2025?

Holographic communication technology has gained ground in recent years. Holograms are fun and have wowed crowds at music concerts. Thought leaders suggest they will radically change how we communicate, but will holographic communication breakthrough in a commercial sense in 2025?

Probably not as there are significant barriers to market entry, Like LEO communications, existing communications technology, such as VR headsets, will prevent holograms from capturing market share. What is more, VR headsets don’t display your phone call to the public. So, it’s a technology you that can be more easily used than holograms.

hologram

Additionally, consumers are already facing higher mobile bills if they want 5G. Paying for holographic add-ons, which require 5G, is probably a step too far.

Arguably, it could be suitable for singular organisational applications, such as in medical situations or gaming exhibitions. However, due to uncertain political and economic conditions, this is unlikely to scale up in 2025 as it’ll be a nice-to-have rather than a strategic necessity.

SMS has had a rough time over the last few years. Will it finally be overtaken by Rich Communication Services (RCS)?

Despite growth in SMS fraud, RCS will probably struggle to expand its footprint in 2025. Recent developments with AI mean that a lot of SMS fraud can now be detected quicker. As a result, operators may see a rise in the efficiency of SMS that negates any need for RCS. Additionally, like with holographic communications, RCS is an expensive nice-to-have for operators rather than a strategic necessity.

Douglas Bryce

Douglas Bryce, Marketing Communications Specialist at Squire Technologies


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