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Telecoms: Hot or Not 2026

Telecoms Hot or Not 2026

What in the telecom market is hot and not in 2026? Wondering “Am I talking to an AI agent?” will be a super-hot trend for 2026. Not hot in 2026 is tech companies bragging about AI robots that keep falling over.

We’ve looked at our data, consulted with our team, chatted with our customers and partners and reviewed 2026 telecom industry analysis articles. Here are our deductions, and we don’t believe AI is as burning hot as many people think.

Agentic AI in Telecom – Hot and cold in places like a microwaved dinner

Agentic Ai

Beware! Most of the people heralding the great telecom agentic AI revolution are probably AI software and AI chip vendors.

While AI innovation is surging, its use in telecommunications infrastructure will likely be incremental until it’s risk-free and cheaper. However, a divide may arise between those telcos that can make incremental investments in agentic AI and those who can’t.

Risks, the pragmatism of telecom operators and the cost of infrastructure upgrades will temper AI deployments. AI learning from telecom data history will likely increase in 2026.

5G – Warm

The 5G killer app never materialised, and talk about 5G is losing ground to 6G and AI. Additionally, network operators’ focus is shifting from 5G deployment to optimisation for revenue extraction.

However, 5G private networks are growing in Europe, and 5G API monetisation will likely experience growth in 2026. Furthermore, 5G Advanced (5G-A or 5.5G) is paving the way to 6G. So, soon, we could see more 5G-A-enabled technologies launching and greater Open Gateway expansion.

5G core product presentation

Telecom security – Riding a solar flare

cybersecurity

Quantum computing and AI are escalating cyber-threats.

Here are three AI and quantum computing cyber threats to be aware of:

  1. Faster attacks and decryption of traditional encryption.
  2. More varied and optimised social-engineer attacks.
  3. Increased HNDL (harvest now, decrypt later) attacks.

Operators can’t simply deploy AI and quantum solutions to counter these threats either. A rushed AI deployment could rapidly scale up configuration errors and data mistakes and misinterpretations. Similarly, interoperability issues on complex networks could be exacerbated by hasty post-quantum cryptography rollouts.

Operators must work with suppliers to ensure data and privacy remain secure in a quickly changing security threat landscape.

MVNOs – Inferno!

Expanded eSIM use, demand for cheaper deals and services, and niche market and branded MVNO ventures are driving MVNO growth. Africa, Latin America and Southeast Asia all saw MVNO growth in 2025, and 2026 should be the same.

people on phones

Silent authentication – Warming up

silent authentification

The extension of data network coverage could make silent authentication more viable. Doing so might protect or even increase A2P messaging market share.

Silent authentication can improve security and user experience by reducing phishing scams and speeding up authentication. By eliminating OTPs for end users, silent authentication can reduce business and consumer losses.

Satellite communications – Failing to engage boosters

Launch delays and low consumer uptake create a contrasting picture against optimistic satellite comms market speculation in 2026.

In 2025, EchoStar sold its spectrum to SpaceX due to its inability to pay the interest on its debts. The cause of the debts seems to be a lack of consumer interest in space-based MNO services.

Reasons for a lack of consumer interest may stem from:

  • Expensive subscription costs.
  • A perception that satellite communication is for emergencies and hard-to-reach, rural areas.
  • Improving coverage and faster speeds of traditional communications infrastructure.

Market Research Intellect reveals that consumer growth is still primarily centred on hard-to-reach rural areas. There are typically fewer people in rural areas, and they might not be able to afford the rates, slowing adoption.

Nevertheless, competition is heating up. The EU is providing €10bn of funding to launch IRIS2, an alternative to Starlink. SpaceX could go public in 2026, boosting public interest. Furthermore, despite recent delays, more companies are seeking launch dates.

However, until customers are convinced that satellite communication is reliable, fast and cost effective, businesses face an uphill battle.

satellite communications

Telecom mergers – Simmering

mergers

In many countries, conditions for M&As are improving due to deregulation and interest rates trending downwards. M&As are being driven by desires for:

  • Affordable network upgrade and efficiency projects.
  • Revenue generation through increased scaling and service diversification.

M&As present an opportunity for regulators to compel and incentivise telcos to improve infrastructure and connectivity. The UK’s Vodafone/Three merger is an example where Ofcom used the merger to prioritise standalone 5G objectives. As a result, regions like Europe could improve standalone 5G deployment beyond 2026.

Speed and coverage – Cold

In several regions, 5G deployments are failing to impact consumer sentiment. Customers are favouring customisable services over speed and coverage, which are now expected features.

Providing customisable services presents a challenge for operators that are seeking to reduce network complexity and cut costs.

So, demand for Interworking Functions and solutions that create network harmonisation could increase, while network expansions and upgrades falter.

5g coverage

Network sharing – Turning up the heat

network sharing

Various forms of network sharing have been occurring for a few years. However, sharing may intensify as operators seek to:

  • Cut costs
  • Scale up
  • Increase revenue
  • Meet sustainability targets

Sustainability is no longer a pseudonym for ecology; it’s a serious business strategy and revenue concern. Network sharing has become a critical tool in this strategy, though security concerns will increase as deeper infrastructure sharing occurs.

Single-vendor network primacy – Icebergs!

Communication service providers are searching for network harmony and reduced operational costs, making single-vendor networks appealing.

However, other factors stand in opposition to this, such as:

  • The need to leverage rapidly changing technologies to optimise network efficiency.
  • The cost of locked-in single vendor networks strategies.
  • The need to meet consumer demands for customisable services.
  • The growing interest in network sharing strategies.

All of this suggests networks are only going to become more diverse.

Furthermore, it’s more cost effective to interwork new and legacy network components than replace the legacy components. As such, the increasing complexity of networks will build demand for solutions that unify signalling.

Conclusion

While A2P SMS value-based pricing strategies present a way for operators to sustain market share, there are other options. Operators can utilise LCR, fraud detection, SMS firewalls and 10DLC regulations to reduce fraud and costs and inspire trust.

SMS has proven to be highly adaptable, and A2P SMS revenue will continue to increase. Operators can use the ubiquity, simplicity and adaptability of SMS to generate revenue in growth markets like IoT.

Douglas Bryce

“If 2025 taught us anything, it’s that anything can happen. To handle the current frenetic nature of economic, political and technological changes, you either must have versatility or deep pockets.  Oh, and nerves of steel. Good luck to us all.”

Douglas Bryce, Marketing Communications Specialist at Squire Technologies


References

https://www.gsmaintelligence.com/research/2026-research-themes-topics-shaping-the-industry-and-driving-our-focus

https://andoverintel.com/2025/12/16/telco-priorities-for-2026-can-they-change-anything/

https://www.prnewswire.co.uk/news-releases/global-satellite-communication-services-market-expanding-at-a-steady-5-5-cagr-amid-rising-demand-for-broadband-connectivity-and-remote-communication-services–market-research-intellect-302668114.html

https://www.emeoutlookmag.com/technology/top-five-technology-trends-in-2026

https://www.cerillion.com/blog/top-telecom-anti-trends-for-2026/

https://www.lightreading.com/satellite/amazon-leo-seeks-satellite-deployment-extension?utm_source=Sailthru&utm_medium=email&utm_campaign=Issue:%202026-02-03%20Light%20Reading%20%5Bissue:81375%5D&utm_term=Light%20Reading

https://www.forbes.com/sites/bernardmarr/2025/11/05/6-critical-telecom-trends-in-2026-what-industry-leaders-need-to-know/

https://www.gsmaintelligence.com/research/mvnos-in-focus-the-state-of-the-market-and-trends-shaping-growth

https://www.lightreading.com/satellite/where-is-the-value-in-cellular-satellite-messaging-

https://iclg.com/practice-areas/telecoms-media-and-internet-laws-and-regulations/01-10-telecom-regulatory-trends-in-the-last-year

https://www.geo-tel.com/top-6-telecom-trends-for-2026/

https://quantumxc.com/blogs-podcasts/quantum-computing-and-ai-threats/

https://www.kaspersky.com/about/press-releases/kaspersky-warns-telecom-threats-from-2025-will-carry-into-2026-as-new-technology-adds-new-risk

https://www.pwc.com/gx/en/services/deals/trends/telecommunications-media-technology.html 

https://www.pwc.com/us/en/industries/tmt/library/telecom-media-deals-outlook.html

https://www.juniperresearch.com/media/skdnfrvg/top-10-telecoms-connectivity-trends-2026.pdf?vgo_ee=x41IKQUeODZe4G0INjJTEkpyihdz3EyIN2q0BdcM7JnE08oiKtEIfoh5HFij8g%3D%3D%3AiZL1042m5bMzcDldSzw0faER9%2BQ%2B3uWv

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