How telecom’s big bets in 2024 set the stage for 2025

2024 has been transformative for the telecom sector. Generative AI has revolutionised customer care efficiency, 3G network shutdowns accelerated, and ongoing mergers and acquisitions have left the industry speculating about its future landscape. But has it lived up to expectations — and what could be next?

 

Monetising 5G

By 2025, 5G networks are predicted to cover one-third of the world’s population. The focus now, however, isn’t so much about enhancing coverage, but how network operators can monetise 5G.

In its report, The Telecoms Industry in 2024: Trends to Watch, the GSMA highlights that 5G monetisation remains a top priority for operators, with network API exposure identified as a crucial driver for maximising 5G return on investment. It also anticipated that plans such as speed-based 5G tariffs or 5G tariffs linked to digital services will be an important element of this push to monetise 5G to consumers. We’ve seen multiple success cases in the past twelve months, including Nokia’s breakthrough in end-to-end 5G slicing that enables operators to deliver tailored, high-performance network services, unlocking new revenue streams for advanced enterprise and consumer use cases.

While the GSMA identifies network API exposure as a key driver, the industry’s real challenge is bridging technical innovations like network slicing with compelling consumer-facing use cases. Without a clear value proposition, monetising 5G could remain aspirational.

While the GSMA identifies network API exposure as a key driver, the industry’s real challenge is bridging technical innovations like network slicing with compelling consumer-facing use cases. Without a clear value proposition, monetising 5G could remain aspirational.”

Moving forward, it’s inevitable we’ll see networks prioritise 5G Standalone (SA) deployments to unlock features like network slicing and ultra-low latency, enabling clear pathways to monetisation. We’ve already seen the likes of EE unveil new locations for 5G standalone coverage, and we can assume more of this in 2025.

 

Unlocking AI’s potential

It’s easy to forget that ChatGPT was only launched in November 2022. While most of 2023 was spent understanding generative AI’s potential, we’ve been able to see some solid use cases in 2024. May 2024 saw Verizon launch new AI tools designed to enhance customer experience, including a Personal Research Assistant, AI-driven matchmaking for customer care and a “Segment of Me” feature, aimed at personalising interactions and improving service accuracy. Vodafone has also set out to transform the customer experience, as part of a far-reaching ten-year strategic partnership with Microsoft launched in January 2024.

However, that doesn’t mean the industry has carved out a clear path to AI success just yet. While promising, we’re mostly seeing just that right now — a lot of promise and potential for the coming years. Regulation around the use of AI in telecoms will also become increasingly important, with several frameworks emerging to ensure ethical and secure deployment. In Europe, the EU AI Act officially took effect in August but we can expect its provisions to continue to be implemented well into 2025. This act is the first of its kind globally, setting a precedent for AI regulation and we should expect it to shape the way AI use cases develop moving forward.

Generative AI’s promise is undeniable, but its deployment must go beyond flashy features such as Nvidia powered AI-RAN tech to tackle persistent telecom pain points, such as real-time fault resolution and predictive maintenance. The EU AI Act will be something to watch in the coming months and years it has the potential to shape how AI innovation evolves in the EU and for its citizens.

 

Are we finally eSIM ready?

Another interesting prediction came from the GSMA. Reflecting on 2023, it anticipated we’d be seeing a lot more from eSIMs in 2024. But has that lived up to be true?

There were more eSIM device and service launches in the first half of 2023 than any previous period, and it’s evident that uptake is increasing. Now that eSIM technology is widely available both in smartphones and as a service in more than half of the world’s countries, the GSMA thought eSIM would receive more consumer uptake in 2024.

Many expected Apple to make a move with an eSIM-only iPhone 16, after doing so in the US with the 14 model back in 2022. This, however, didn’t happen. While it is clear that network operators are talking more about eSIM to their customers, especially in the context of digital-first propositions, more needs to be done to make more eSIM-only devices viable worldwide.

Resistance from traditional players, a lack of consumer awareness, regulatory hurdles and cost considerations continue to present challenges in eSIM’s mass uptake. However, that doesn’t mean we shouldn’t remain optimistic. 2025 could well be the year that eSIM breaks into the mainstream. As more devices — beyond smartphones —integrate eSIM capabilities, from wearables to IoT solutions, the technology is poised to redefine connectivity for both consumers and industries.

eSIM adoption is more about ecosystem readiness than technological readiness. Until operators harmonise efforts globally and effectively communicate benefits to consumers, eSIM will remain a niche feature. The potential is clear, and the momentum is building but the industry needs better alignment.

2024 was a year of incremental advances rather than breakthroughs. The 5G myth was finally busted and we saw clear evidence that data growth rates are now slowing. For 2025, the telecom sector must focus on converting its potential into tangible, scalable solutions that resonate with both enterprises and consumers.

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