Market Outlook: Hot Topics in the Telco Industry

The AI wave, shifting geopolitical and regulatory landscapes, and conversations with industry peers all point to one conclusion: the telecom industry must continue its fundamental transformation. As we enter 2025, several bombshells are shaking up the sector. 

AI Explosion 

The AI boom is in full swing, with the Trump administration announcing a $500 billion investment, India's Deepseek emerging as a competitor, and Europe ramping up efforts to stay in the race. For telecommunications, AI translates into multiple practical network performance use cases. These include predictive maintenance for detecting potential equipment failures, network capacity planning to optimize infrastructure, advanced cybersecurity for preventing attacks, and enhanced customer support through intelligent systems that can proactively identify and resolve connection issues before they escalate. 

Enhanced Spatial Precision with 5G 

5G networks are revolutionizing location-based services with unprecedented spatial precision. This improved accuracy is crucial for meeting public safety regulatory requirements. The European Commission's biennial reports on the EU emergency number 112 implementation highlight the growing importance of precise location data in emergency services. Article 109 EECC mandates both network-based and more accurate handset-derived location information. EENA recommends a horizontal accuracy of 50 meters for 80% of mobile emergency calls. By combining AML deployment with 5G's improved precision, this standard enables significantly more accurate emergency responses. 

Business Opportunities through Network API Exposure 

Network API monetization is emerging as a significant revenue stream for telecommunications companies. Omdia analysts forecast global network API revenues reaching $9 billion by 2029, primarily driven by device location services. Four key location APIs are driving this growth: device location and identity verification, geofencing subscriptions, location retrieval, and population density data. These APIs create innovative opportunities across industries, including fraud prevention in banking, proximity-based advertising, and physical asset tracking, including drones and Industry 4.0 applications. Anti-fraud measure is a proven use case: banks must be able to reconcile an individual's location with their device location when a payment is being made abroad. 

Technology Transformation with On-Premise Cloud Solutions 

Telecom operators are confronting a complex technological landscape marked by increasing cybersecurity risks and regulatory pressures. On-premise cloud solutions offer a strategic response, enabling them to balance cloud benefits with data sovereignty requirements. Implementing a cloud-native layer and rolling out applications in container format instantly relieves IT teams from labor-intensive maintenance tasks, drastically reduces infrastructure costs, and delivers immediate return on investment through instant product releases and upgrades.