Beyond Now's 2025 predictions for the telecoms and technology industry

2024 was a challenging year for most telcos. Economic turbulence forced many CSPs to hit the pause button on 5G and fiber rollouts once it became clear that ROI was below expectations. Inflation outpaced revenue growth, forcing CSPs to make deep cost cuts to protect EBIT, dividends and debt service. Over the last 5 years in fact, very few telcos have seen a positive share price evolution. In our 2024 predictions, we anticipated that digital platforms would take centre stage. This observation was backed up by analysts and peers alike —  e.g. reputable insights firm EY stated that telcos must rethink their business models and build ecosystem positions to be ‘ready for tomorrow’. 

Here are our predictions for 2025:
 

1.    Late Adopters Will Find Their Way to B2B

2024 proved without a doubt that there is a paradigm shift in CSP priorities. While B2C provides volume to monetize network investments and is where most money is spent, there is a general consensus that B2B is where growth lies. This requires a deep transformation within CSPs to remove silos, invest in digital and ecosystems and start bundling together connectivity with cloud, security, IoT and solutions, in large part to find new value add by expanding their portfolio of third-party offerings.

The B2B marketplace or digital platform will become the cornerstone of CSPs' IT architecture—a vital enabler for driving innovation, achieving growth, enhancing customer satisfaction, and simultaneously optimizing costs. AI-powered marketplaces will empower CSPs to confidently understand and meet the expectations of their SMB and enterprise customers, eliminating the doubt that previously held them back.

A word for the wise: if you’re starting a B2B marketplace, start with the problems your customer wants to solve. And very fast, you’ll find that success lies in offering tailored solutions and bundles that deliver tangible value. 
In 2025, CSPs that still haven’t made B2B growth their priority will find themselves joining the rest and embracing this essential opportunity.

2. “A Network API Play is the New Holy Grail” – Not again!

There’s been plenty of hype, focus and investment in cross-industry projects centered around network APIs — great idea, and definitely an essential thing to do — but let’s not fall into the same trap as 5G. Like 5G, network APIs are a means to an end, not the end itself. Enterprises, regardless of size, aren’t looking to pour money into exploring what network APIs might offer. They don’t have time to build developer communities to explore the art of the possible. They need to focus on running their business and they need to focus now. 

What they want from CSPs and ecosystem partners is simple: for them to step into their world, understand their challenges, and build out-of-the-box (OOTB) solutions that solve their problems. If CSPs really want to realize the value of network APIs, in collaboration with tech partners, they must find a way to create usable solutions that enterprise customers can try before they buy. Together, CSPs and their partners must create complete, outcome-driven solutions.  The key to this and unlocking network APIs is through leveraging ecosystems and the B2B2X model.

Customers — whether they are consumer, SMB, enterprise, government etc.— want to buy OOTB solutions that deliver immediate value over a patchwork of tools and modules. For CSPs, this necessitates a shift back to co-creation with ecosystems. CSPs, in essence, need to create solution factories — places where APIs are transformed into end-user-ready products that are marketable and effective.

3.    AI: from Hype to the Heart of Business

Artificial Intelligence has the potential to become a disruptive force reshaping CSP operations and business models. In 2025, AI will go beyond customer experience and network management to become an integral part of CSP operations. This will involve embedding AI across IT systems, from billing to customer service automation, creating more cohesive and efficient processes.

However, for CSPs to harness the full potential of AI, they must address longstanding operational and data silos. Current structures hinder the ability of AI to optimize processes holistically. By fostering cross-departmental collaboration and aligning data and technology selection decisions across the board, CSPs can break down these silos and leverage AI's transformative power effectively.

This integration will not only boost internal operations but also shift business models toward more adaptive, data-driven approaches. CSPs will need to pivot from reactive to proactive management, allowing AI to anticipate customer needs, optimize network usage, and enhance service delivery at unprecedented levels.

4. The Consumer Business Rethink 

The consumer segment has experienced stagnating economic growth over recent years, prompting CSPs to rethink their approach. 2025 will mark a renewed focus on customer segmentation, moving beyond traditional size-based categorizations. Treating customers as an undifferentiated group will no longer suffice; deeper, insight-driven segmentation will unlock more personalized and effective value propositions.

The opportunity lies in AI, which can help CSPs understand the specific needs and expectations of each customer group and tailor their offerings accordingly. There is an opportunity to create broader offers, around knowing your customer and creating relevant value propositions. This strategic shift requires CSPs to leverage analytics, invest in customer relationship management, and create a flexible service architecture capable of rapid adaptation.

By emphasizing bespoke customer solutions, CSPs can elevate consumer engagement and loyalty, ultimately driving growth. Such targeted strategies ensure that customers receive more than just connectivity—they experience personalized journeys and value-driven outcomes.

5. The Year of The ‘Co-’

Reality check: while some CSPs reported growth this year, a closer look revealed that it was either flat or negative when measured in real terms after inflation. Many CSPs find themselves left alone to deal with the challenges of stagnating revenue, heightened competition, and shifting customer demands. Partnership is no longer a question of 'if,' but 'how'. To move forward, CSPs must develop a model on The 5 ‘Co-s’:
 

• Co-creating: Collaboration with technology partners, software vendors, and even other operators is key to delivering the tailored solutions customers expect. By co-creating, CSPs can leverage external expertise and R&Ds, creating innovative offerings that address specific market needs — whether it's in cloud services, 5G, or enterprise solutions.
• Co-selling: CSPs must engage in joint sales efforts with their ecosystem partners, aligning marketing strategies and sales processes to drive greater reach and effectiveness. This collective approach ensures that CSPs can tap into new markets and leverage partner strengths, amplifying their go-to-market capabilities.
   
• Co-provisioning: Co-provisioning will ensure that the delivery of services is seamless, with CSPs and their partners coordinating on service deployment and management, offering customers a more efficient and integrated experience.
   
• Co-monetization: Beyond simply delivering connectivity, CSPs must find ways to monetize their networks, data, and services in partnership with other tech players. By sharing revenue and developing new commercial models with ecosystem partners, CSPs can unlock new business models that extend well beyond traditional telecom offerings.
   
• Co-supporting: This ensures that customer experience remains a key focus of all joint efforts. As CSPs team up with ecosystem partners, it is crucial to align support services to deliver seamless, high-quality experiences to customers, providing a unified system that ensures not just service performance, but technical support and the quick resolution of issues. 

The ‘5 Co-s’ are best supported by a digital business platform. Those who embrace digital transformation and master the ‘5 Co-s’, will not only navigate the changing telco landscape but will set the stage for sustained, future-proof growth.