The telecoms industry in 2025: trends to watch

INSIGHT SPOTLIGHT January 2025

Are you ready for 2025?

We recently published our 2025 Research Themes – the big topics that will shape the industry and drive
our focus throughout the year. To complement these, and help the industry navigate the year ahead,
below we share our views on the key trends to watch in 2025 and what they mean for ecosystem players
across five areas.

5G and network Spectrum landscape Fixed and pay-TV

transformation markets

IoT and enterprise Digital consumer

markets

For more details on our research themes, see 2025 Research Themes

© 2025 GSM Association @GSMAi www.gsmaintelligence.com

 5G and network transformation:
five trends to watch in 2025

INSIGHT SPOTLIGHT

Throughout 2024, we have analysed important To help navigate the year ahead, we are releasing a
developments and innovation spanning all areas of the series of reports that highlight the key trends to watch
telecoms industry and wider digital ecosystem. How will in 2025 and the implications for ecosystem players.
the industry evolve in 2025? Which trends will continue The analysis covers five key areas: 5G and network
to run their course? Which trends will take a new transformation; spectrum; IoT and the wider enterprise
direction? And which will enter the fray for the first market; the digital consumer; and fixed and pay-TV
time? markets. This Insight Spotlight addresses 5G and
network transformation, leveraging results from our
upcoming network transformation survey research.

Analysis
5G-Advanced: balancing use cases and deployment
5G-Advanced, network APIs, cloud technologies, automation and
aspirations AI. This might seem like a contradiction, but nearly the same
The availability of 5G-Advanced standards and solutions has led to number of operators point to open RAN as ‘very’ or ‘extremely’
deployment announcements, with an incredible share of operators important year on year. Going forward, then, the challenge for
planning to launch 5G-Advanced in the near term: three quarters operators will be balancing open RAN interest against other, more
expect to deploy within the next two years based on our latest pressing priorities. 5G-Advanced should help, as most operators
network transformation survey. Regardless of whether suppliers see it as a catalyst for open RAN deployment – though the market
could even address that demand, planned use cases will ultimately still needs to first overcome basic obstacles in terms of security,
play a major role in justifying investment in the technology. performance and integration.
Operators know what they expect 5G’s next evolution to deliver:
network performance, management and efficiency improvements. Security: cross-cutting implications will make it an end-to-
None of these are seen as significantly more important than the end imperative
others. But at the same time, the fact that potential use case
Security is more than just a concern for open RAN deployment.
improvements targeting the B2B and B2C segments are seen by
The telecoms threat landscape is getting increasingly complicated,
operators as less important is directly at odds with strategic growth
as networks are relied upon to carry mission-critical data, high-
imperatives.
profile hacks are becoming more frequent and AI democratisation
threatens to make network attacks and end-user fraud easier to
AI use cases: internal and external tensions will continue
implement. This helps to explain why end-user and network
While operators have been employing AI in their networks for security were listed as the top network-related business priority by
years, recent generative AI (genAI) innovation has driven a operators in our survey. The relationship between security and
renewed focus on how AI can be used in support of strategic open RAN, however, highlights an important point. Because
business objectives: improving customer experience, generating security is critical to network operations and end-user services,
new revenues and delivering opex and capex efficiencies. While operators need to think about its application across the diverse
operators prioritise revenue generation and customer experience technologies they implement, including open RAN, AI, APIs, non-
over opex and capex savings by a four-to-one margin, the biggest terrestrial networks, edge computing and private networks.
impact from genAI is expected to come from internally focused
network operations use cases, including network User experience: coverage and capacity might be
planning/optimisation and predictive maintenance, followed by unexciting, but will continue to matter
internal software development. More reliable networks and faster
User experience ranked as the top criterion by which network
software development will certainly support better user experience.
transformation success is measured. As to how ‘experience’ is
Use of genAI to drive new revenues, however, remains a work in
defined, we can look to the top capabilities deemed necessary for
progress.
executing B2B and B2C objectives: coverage (wide-area and in-
building), data speeds and network performance visibility. Against
Open RAN: momentum will continue, with 5G-Advanced
the backdrop of new services seen as a telco growth vector, a
keeping it top of mind
focus on more fundamental capabilities does suggest less of an
There has been noticeable momentum building for open RAN in innovation mindset and more of a concentration on capabilities
2024, including major operator commitments and supply-chain such as massive IoT, ultra-reliable low-latency communications or
diversification progress on the solution supplier (e.g. Ericsson) and positioning support. This highlights that the ‘basics’ are what
silicon (e.g. Qualcomm) fronts. And yet, while our network operators still focus on, with implications for how future 5G-
transformation survey identified open RAN as a top technology Advanced and 6G decisions will be made.
priority in 2023, it fell precipitously in 2024, settling in behind

© 2025 GSMA Intelligence @GSMAi www.gsmaintelligence.com

 5G and network transformation: five trends to watch in 2025

Implications
Mobile operators Network infrastructure suppliers
• Don’t forget standalone – Since 5G first launched, it was • Make messaging about tech maturity and integration
understood that 5G standalone (SA) would be important for capabilities – Across all priority network technologies, the
delivering on the technology’s full promise, especially in most common deployment obstacles are technology maturity
support of B2B use cases. Deployments, however, have not and integration into existing networks. For technology
matched early expectations. Today’s focus on 5G-Advanced suppliers, the implication is clear. As new technologies are
is encouraging; it suggests that operators understand the rolled out, messaging must focus on solution maturity and
limits of non-standalone 5G. However, 5G-Advanced does not market readiness, along with ease of integration, potentially
require the deployment of 5G SA and operators cannot afford tied into integration service capabilities.
to let 5G-Advanced plans further delay SA launches.
• Moderate 6G posturing – Current operator thinking about 6G
• Hone 5G-Advanced use cases – Clear use cases are key to is seemingly contradictory. On one hand, operators have high
supporting the deployment of any new technology; without an hopes for the next network generation in terms of both
understanding of what the technology will be used for, deployment timing and what they expect the technology to
investment is difficult to justify. Against this backdrop, the achieve. On the other hand, many would rather that the
broad set of use case priorities for 5G-Advanced is potentially industry talk less about 6G visions while 5G monetisation is
concerning. No clear winners among these suggest a lack of still a work in progress. Network solution vendors may be
defining vision, and a relative lack of focus on B2B and B2C eager to tout their 6G R&D innovations, but aligning with their
services may complicate the return on investment delivery. customers’ interests will require more nuanced messaging
that balances future 6G capabilities without a push on
• Re-evaluate aspirations beyond 5G – It is clear that
accelerated (near-term) timelines.
expectations around 5G evolutions are very optimistic:
operators are planning accelerated deployments of 5G- • Tie coverage and capacity to new tech priorities – Much
Advanced; they see 6G networks arriving well before 2030; like with 6G, broader telco network transformation strategies
and they expect 6G to deliver on a wide array of needs, include some contradictory thinking. A focus on improved user
including new spectrum bands focused on coverage. While it’s experience, for example, results in coverage and capacity
logical to aim for new technologies to deliver on diverse goals being top investment priorities. But at the same time, network
– especially when standards and specifications are getting monetisation and new service development imperatives
finalised – operators also need to be realistic in their require more than just delivering coverage and capacity.
expectations or results will be deemed a failure as soon as Infrastructure suppliers therefore have an opportunity. By
those technologies arrive. making a connection between foundational service
requirements (i.e. coverage and capacity) and new service
opportunities (e.g. ubiquitous and high-capacity IoT support),
vendors can telegraph a way to support forward-looking
growth agendas alongside the basics of reliable service
delivery.

Related reading Author

Open RAN in 2024: why deployments are lagging Peter Jarich, Head of GSMA Intelligence
behind expectations

After a slow start, the rollout of 5G SA networks is set

to accelerate over the next two years

© 2025 GSMA Intelligence @GSMAi www.gsmaintelligence.com

 Spectrum: five trends to watch in 2025

INSIGHT SPOTLIGHT

Throughout 2024, we have analysed important To help navigate the year ahead, we are releasing a
developments and innovation spanning all areas of the series of reports that highlight the key trends to watch
telecoms industry and wider digital ecosystem. How will in 2025 and the implications for ecosystem players.
the industry evolve in 2025? Which trends will continue The analysis covers five key areas: 5G and network
to run their course? Which trends will take a new transformation; spectrum; IoT and the wider enterprise
direction? And which will enter the fray for the first market; the digital consumer; and fixed and pay-TV
time? markets. This Insight Spotlight addresses the spectrum
landscape.

Analysis
The year of spectrum renewals and network sunsets of the upper 6 GHz band and the UAE is assigning the full upper 6
GHz to its operators. Meanwhile Sri Lanka, Indonesia, Thailand,
Spectrum assignments in different bands, such as the 900, 1800
Bangladesh and Cambodia have added it to their spectrum
and 2100 MHz bands, are approaching expiry in over 30 countries
roadmaps. In 2025, many more nations will make 6 GHz available
in 2025. At the same time, 61 network sunsets are planned for 2G
for IMT in their national tables of allocation, a cornerstone for
and 3G technologies within the same year. Globally, the 900, 1800
spectrum roadmaps that are essential to provide long-term
and 2100 MHz bands are the harmonised home for 2G and 3G
investment certainty to telecoms operators.
networks, offering a good portfolio for coverage and capacity. They
are therefore the ideal bands to migrate in part or fully via network
sunsets to enhance the 4G and 5G connectivity of telecoms
New pricing and licensing methodologies will promote
operators. It is crucial for regulators that these bands are renewed connectivity for digital nations
on a technology-neutral and affordable basis to allow for the
Nations around the world aspire to become digital nations, with
migration of these spectrum resources for future connectivity
spectrum serving at the heart of these digital economies by
requirements.
enabling connectivity for all. It is therefore vital that operators have
access to timely and adequate spectrum resources at affordable
D2D connectivity will be a key part of spectrum prices. Governments and regulators are mindful of this and are
discussions adopting innovative pricing and licensing models to ease the
financial pressure on operators while encouraging investments in
99 operators worldwide have partnered with satellite companies to
connectivity and coverage. For instance, Germany and Spain have
offer satellite services, with 19 having already launched
extended spectrum licences by five and 10 years, respectively, at
commercial offerings, according to GSMA Intelligence. The
no additional cost, in return for coverage commitments. With
increasing supplemental capabilities of telecoms and satellite
licences approaching expiry in over 30 countries in 2025, more
networks, especially in the direct-to-device (D2D) space, has
nations are likely to adopt similar or other innovative licensing
sparked significant regulatory activity. For example, the Australian
frameworks to advance connectivity and reduce the financial
telecoms regulator announced that IMT-based satellite direct-to-
burden on operators.
mobile services can operate under Australia-wide spectrum
licences without further approval. Meanwhile, regulators in the UK
and India have sought industry input on satellite-based
Spectrum for future technologies
communication services. As this trend accelerates, D2D The agenda for WRC-27 includes new studies for IMT in the 4400–
connectivity is poised to become one of the key topic of spectrum 4800 MHz, 7125–8400 MHz and 14.8–15.35 GHz bands for next-
strategies and discussions in 2025. generation technologies. In addition to possible new IMT bands,
the WRC-27 agenda includes studies for D2D in IMT bands
More countries will identify 6 GHz for IMT in their between 694/698 MHz and 2.7 GHz, and studies for new mobile
national table of allocations satellite bands (1427–1432, 1645.5–1646.6, 1880–1920, 2010–
2025 and 2120–2170 MHz). In 2024, the industry focused on
At the World Radiocommunication Conference 2023 (WRC-23), the identifying their stance and strategy for the upper 6 GHz band,
upper 6 GHz band (6.425–7.125 GHz) was identified for mobile renewals of spectrum used for previous-generation networks, the
use across all ITU Regions (Europe, the Middle East and Africa, assignment of 5G spectrum in 20 additional countries and
the Americas and Asia Pacific). A GSMA study found that mobile partnerships with satellite players. While these will continue to be
networks will need an average of 2 GHz of mid-band spectrum per focus areas in 2025, and possibly 2026 as well, studies and trials
country by 2030 – this will be difficult to achieve without 6 GHz, on the WRC agenda items will also initiate on the topics of
which is the single largest remaining mid-band block. Ensuring its coexistence and spectrum use and needs.
timely availability at reasonable conditions and prices is therefore
crucial. Hong Kong recently concluded the world’s first IMT auction

© 2025 GSMA Intelligence @GSMAi www.gsmaintelligence.com

 Spectrum: five trends to watch in 2025

Implications
Mobile operators Regulators
• Assess your spectrum portfolio requirements – The • Ensure the safe coexistence of various technologies –
renewal of spectrum licences offers telecoms operators an The growing momentum of D2D services has already sparked
opportunity to reassess and optimise their spectrum portfolios. regulatory discussions to identify spectrum strategies and
When licences are renewed through assignments, rather than understand the technicalities involved. The WRC-27 agenda
extensions, operators can bid for additional spectrum or includes studies for D2D in IMT bands between 694/698 MHz
increase their bandwidth in one frequency band while and 2.7 GHz. As the industry focuses on studies and trials on
reallocating resources from others. However, this requires a the WRC-27 agenda items, regulators and policymakers must
thorough assessment of current and future spectrum needs. ensure that the protection of terrestrial networks is not at risk,
With spectrum licences approaching expiry in more than 30 and non-terrestrial networks must not cause interference into
countries in 2025, operators must proactively and terrestrial networks. Spectrum issues with respect to D2D
transparently articulate their requirements with regulators, present substantial challenges. International and cross-border
backed by clear use cases. coordination will be critical for the operational sustainability of
D2D, which will not be a benefit unless it can coexist safely
• Embrace the inevitability of network sunsets – Network
alongside terrestrial mobile and other services.
sunsets are not novel, with the industry witnessing the sunset
of CDMA networks in the early 2010s and some 2G networks • Play your role in telcos’ network sunset journey – Network
in Asia Pacific in the late 2010s. The advent of 5G has sunsets are inevitable. However, telecoms operators in many
spurred momentum in network sunsets to address declining countries face significant roadblocks in their network sunset
traffic on legacy networks, the financial burden of maintaining journeys. Common challenges include the reliance on legacy
them and the need for efficient spectrum use by migrating to 2G/3G networks for critical services (such as e-call or SOS),
newer technologies. Network sunsets are now a question of public utilities such as meters and elevators still being
when, not if. By the end of November 24, a total of 152 configured to these networks and the affordability of 4G/5G
networks had been shut down and another 131 networks were devices. It is therefore imperative for regulators to provide a
planned to be shut down by 2030. Operators should develop a guiding framework and implement various policy measures to
clear strategy and roadmap around their network sunset assist operators with network shutdowns based on market
plans. A GSMA Intelligence report highlights best practices requirements. For example, several countries have introduced
and challenges from these cases, offering operators a import bans on devices that rely exclusively on 2G/3G
roadmap to navigate their network sunset journey effectively. networks. Such measures can accelerate the adoption of
4G/5G networks, facilitating smoother network shutdowns.
• Don’t miss the flight to space – Just shy of 100 telecoms
operators, representing 70% of the global market by number • Establish clear spectrum roadmaps – Spectrum roadmaps
of connections, have made partnerships with satellite players. offer the much-needed certainty to operators to foster long-
The basic premise of leveraging satellite connectivity is to term investment in their networks. Establishing transparent,
address coverage gaps. However, the integration with both long-term spectrum roadmaps, including the availability of the
mobile broadband and IoT devices in 3GPP standards has 6 GHz band and future IMT bands, is critical to enabling
also opened a whole new world of possibilities in the sustained industry investment.
enterprise segment. We estimate that 2–3 billion IoT devices
are currently addressable using satellite connectivity, which
equates to around 10–15% of total IoT connections. GSMA
Intelligence’s global enterprise survey reveals that 43% of
enterprise buyers consider satellite as extremely important to
their technology plans. The time for telcos to act is now,
whether this this involves offering the connectivity or
participating in spectrum discussions to avoid interference or
other technical issues.

Related reading Author

Mobile Evolution in 6 GHz Radhika Gupta, Head of Data Acquisition

Network Sunsets, Q3 2024

© 2025 GSMA Intelligence @GSMAi www.gsmaintelligence.com

 Fixed and pay-TV markets: five trends to watch in 2025

INSIGHT SPOTLIGHT

Throughout 2024, we have analysed important To help navigate the year ahead, we are releasing a
developments and innovation spanning all areas of the series of reports that highlight the key trends to watch
telecoms industry and wider digital ecosystem. How will in 2025 and the implications for ecosystem players.
the industry evolve in 2025? Which trends will continue The analysis covers five key areas: 5G and network
to run their course? Which trends will take a new transformation; spectrum; IoT and the wider enterprise
direction? And which will enter the fray for the first market; the digital consumer; and fixed and pay-TV
time? markets. This Insight Spotlight addresses the fixed and
pay-TV markets.

Analysis
Fixed network transformation will be in vogue Traditional pay TV will have its toughest year to date
The switch-off of copper-based networks is accelerating (our Across many countries, the combination of increased competition
tracker shows that Europe and North America are leading), with for video services and the cost-of-living crisis will continue to bite,
benefits coming in the form of lower overall maintenance costs, a leading to record levels of cord-cutting. In 2025, traditional pay-TV
future-proof network and higher ARPU. We expect progress in net losses across 36 major markets will amount to 16.5 million, up
2025, including new switch-off announcements from operators. from 15.9 million in 2024. However, trends will vary by country.
Additionally, cable companies are increasingly using fibre for During 2025, the number of traditional pay-TV connections will
greenfield deployments, with some (e.g. Virgin Media O2 and Altice decrease in 21 countries and increase in 15 countries.
USA) even planning to replace DOCSIS with fibre altogether. Encouragingly, annual net losses will slow in the US, from 5.8
Finally, due to the growing demand for ultra-fast and reliable million in 2024 to 4.5 million in 2025, partly due to operator
connectivity to support digital lifestyles and remote working, strategies to mitigate churn.
momentum for fibre to the room (FTTR) will accelerate, with the
Middle East and North Africa (MENA) and Asia Pacific currently The OTT video space will be more challenging than ever
leading.
With the pandemic-induced boom having clearly come to an end
These three trends will boost fibre adoption. Across 36 major and the ongoing cost-of-living crisis affecting many countries,
markets, we forecast that FTTP/B’s share of fixed broadband providers of over-the-top (OTT) video services will face a much
connections will reach 76% by the end of 2025. As a result, tougher environment in 2025. Following price increases to enhance
FTTP/B will be the leading access technology in 24 markets (up profitability and the fragmentation of content across multiple
from 14 in 2020). services, the perception of standard OTT subscriptions as a low-
cost alternative to traditional pay TV is diminishing. Providers of
5G FWA penetration will become material in more OTT services are now confronted with slowing growth and rising
markets competition from free ad-supported streaming TV (FAST) services,
many of which are offered by device vendors to generate additional
As of September 2024, 139 operators across 68 countries had revenue streams and differentiate themselves.
launched 5G fixed wireless access (FWA) services, with 22
operators having announced plans to launch in 17 countries – a Operators will face a growing threat for OTT service
combined total of 161 operators across 76 countries. With 14.7
bundling
million 5G FWA connections expected by the end of 2025 (up from
11.6 million in 2024), the US will continue to be the world’s largest Over the past couple of decades, operators have emerged as a
5G FWA market, followed by India (6.1 million connections). Three key distributor of OTT services, successfully bundling them with
markets will have a 5G FWA penetration (as percentage of fixed connectivity. Other verticals are starting to follow this path. In the
broadband connections) of 10% or more by the end of 2025: US, retailers such as Kroger and Walmart offer free ad-supported
Austria (23%), the US (11%) and India (10%). subscriptions to popular OTT video services for a year to increase
the appeal and stickiness of their own loyalty schemes. Other
5G FWA momentum will be driven by various factors, including
membership-based services, such as Instacart in the US and Uber
more 5G network launches, enhanced network performance due to
One in the UK, have partnered with Peacock and Disney+
the ongoing deployment of 5G standalone and the early launch of
respectively for similar bundles. In Australia, AGP bundles Netflix
5G-Advanced, cost reductions in customer-premises equipment
with gas and electricity. In 2025, we expect more partnerships
(CPE), early availability of 5G RedCap and continuing demand for
between providers of OTT video services and players in other
fixed broadband services in unserved or underserved areas.
verticals, notably retail and utilities.

© 2025 GSMA Intelligence @GSMAi www.gsmaintelligence.com

 Fixed and pay-TV markets: five trends to watch in 2025

Implications
Fixed broadband providers
• Monetise the transition to fibre – With the ongoing transition from copper to fibre, operators can increase ARPU by encouraging
subscribers to upgrade to higher speed tiers. French operator Iliad, for example, has successfully done this by including better CPE
and additional video content in its top-tier bundles. FTTR represents another way to generate additional revenue from fibre, as well as
an opportunity for differentiation. As of June 2024, 20 service providers in 18 markets had commercially deployed their FTTR services,
primarily in the MENA and Asia Pacific regions. At the same time, operators replacing copper with fibre will need to ensure that plans
are in place to cater for the needs of legacy PSTN users to make a successful transition.

• Evolve bundling strategies – Operators have successfully been using service bundling as a customer acquisition or retention
strategy, starting with multi-play offerings combining their own services and then adding third-party digital services, notably OTT video
services. Faced with the prospect of growing competition from players in other verticals in 2025, operators need to add more value to
customers beyond value-for-money propositions. For example, they can make it easier for customers to select and manage their third-
party subscriptions through direct carrier billing (DCB) and portals such as Optus SubHub and Verizon+.

• Leverage 5G FWA to complement fibre – In 2025, converged mobile/fixed operators that haven’t already done so can extend their
fixed broadband service footprint by launching 5G FWA services, especially in unserved and/or underserved areas, where it is less
viable (from an economics perspective) to deploy fibre. In addition, 5G FWA is well suited for use cases such as back-up/temporary
connectivity or it can be positioned as a lower-cost and more flexible alternative to fibre, particularly if using 5G RedCap. 5G FWA also
gives operators the opportunity to offer pay-TV services to customers who do not take up traditional wired fixed broadband. For
example, Verizon bundles Netflix and Max (formerly known as HBO Max) with some of its FWA subscriptions.

Pay-TV providers
• Reinforce the perception of value for money – Cord-cutting will increase in many markets during 2025, as high prices and
insufficient use of the service are leading consumers to review the need to have a subscription to traditional pay TV. Operators such
as Charter Communications in the US have reduced net losses in Q3 2024 by recently including ad-supported tiers of popular OTT
video services, such as Paramount+, free of charge within their pay-TV propositions. Others, such as Cox Communications, have
been adding FAST channels to their offer.

• Create integrated experiences – In 2025, the growth of FAST services will lead to increasing fragmentation of content across
multiple services, making it harder for consumers to find the content that they want to watch. Traditional pay-TV providers can
capitalise on their role as content aggregators by providing user interfaces that allow subscribers to easily access relevant content
through features such as unified search capabilities, content recommendations and voice control.

• Revisit OTT video business models – The recent rounds of price increases for most OTT video services may have boosted
profitability, but this can come at the expense of growth, leading to more cancellations and reduced take-up rates, notably for
secondary OTT video services. Many players have turned to more affordable ad-supported tiers, and some have made partnerships to
offer discounted bundles, such as Starz and Britbox combining their services in the US. We anticipate more of these partnerships in
2025.

Mobile operators
• Capitalise on 5G FWA to gain fixed broadband market share – For mobile-only operators, 5G FWA represents an opportunity to
better monetise 5G by generating an additional revenue stream in the fixed broadband market. Following the launch of 5G FWA
services in 2021, T-Mobile US has gained 6 million subscribers as of September 2024. In 2025, providers of 5G FWA services can
also capitalise on emerging 5G Redcap technology to make fixed broadband more affordable. In the Philippines, operator Dito is
aiming to capture a share of the fixed broadband market by offering value-for-money FWA propositions that leverage 5G and 5G
RedCap technology.

Related reading Author

The future of fixed broadband: trends and drivers Cesar Bachelet, Lead Analyst, Fixed, TV and
disrupting the market Convergence

Pay TV: consumer trends and commercial practices

shaping competition and adoption

© 2025 GSMA Intelligence @GSMAi www.gsmaintelligence.com

 IoT and enterprise markets: five trends to watch in 2025

INSIGHT SPOTLIGHT

Throughout 2024, we have analysed important To help navigate the year ahead, we are releasing a
developments and innovation spanning all areas of the series of reports that highlight the key trends to watch
telecoms industry and wider digital ecosystem. How will in 2025 and the implications for ecosystem players.
the industry evolve in 2025? Which trends will continue The analysis covers five key areas: 5G and network
to run their course? Which trends will take a new transformation; spectrum; IoT and the wider enterprise
direction? And which will enter the fray for the first market; the digital consumer; and fixed and pay-TV
time? markets. This Insight Spotlight addresses IoT and the
wider enterprise market.

Analysis
Enterprise interest in generative AI will reach a new high Mission-critical 5G will emerge as a key enterprise 5G
opportunity
During 2024, the launch of generative AI (genAI) solutions for
enterprises has ramped up, driven by major enterprise software In the broader enterprise 5G picture, 5G networks that are
application vendors such as Microsoft (Copilot AI agents), Zoom configured as mission-critical networks will likely prove to be a key
(AI Companion) and SAP (Joule), among others. opportunity. In this segment, buyers are primarily the wider public
sector and large-scale infrastructure companies (e.g. utilities,
According to our Global Digital Transformation Survey 2024, 86%
heavy industries, railways, airports) with specific needs, mainly
of enterprises undertaking digital transformation already use genAI
around security, reliability and availability of connections. As an
technology, but only 33% are currently making advanced use of it,
example, the US Department of Defense has been working with
leaving room for growth. During 2025, we expect enterprises to
Nokia and Verizon for the implementation of its private 5G
push the use of genAI technology across three areas: validation of
deployment strategy. In 2025, more government agencies will
early use cases; experimentation of new use cases; and initiatives
adopt 5G-based technologies, such as 3GPP-certified broadband
to move from limited to more advanced use of the technology.
mission-critical services (MCx), in their nationwide emergency
response services (e.g. FirstNet in the US, Virve 2 in Finland),
AI will prompt a rethink of cloud versus on-premises potentially as a future replacement of existing TETRA networks.
decisions
The large-scale adoption of genAI and wider AI applications – 5G IoT: 5G RedCap will launch in the US
including for experimentation purposes – will eventually increase 5G RedCap is a 5G-native IoT technology with a value proposition
data traffic and security vulnerabilities, which means further around performance, cost and mid-range data rate support.
network and digital infrastructure upgrades will be needed. The According to the GSMA Intelligence 5G RedCap tracker, the
data centre market is already seeing a shift towards on-premises technology is just starting to be deployed outside of China. At the
deployments (propelled by the desire to run AI at the edge). During end of 2024, T-Mobile will activate 5G RedCap in the US, and in
2025, this trend will solidify, as some enterprises will turn towards the beginning of 2025 AT&T is expected to do the same. 2025 will
more tailored and secure on-premises solutions as a way out from therefore show whether 5G RedCap establishes itself in the US (as
less flexible cloud contracts and to avoid less secure deployments. well as displaying use cases and pricing), which will be an
important indication for the rest of the world. In terms of the more
2025 will help clarify winners and losers in private established cellular IoT business, throughout 2025 IoT players will
networks be busy migrating old connections from 2G and 3G networks,
which are scheduled to be shut down, to newer technologies,
In 2024, private 5G networks – a technology still in the early stages mainly LTE Cat 1, LTE Cat 1bis, NB-IoT and LTE-M.
of its lifecycle – expanded to more enterprise adopters than ever
before. However, despite the growing market, private network
sales cycles have proven longer than originally expected.
Additionally, as implementations are typically highly customised,
monetisation for many have proved to be less straightforward than
anticipated. According to our operator enterprise survey, almost
40% of operators deem the monetisation of private networks as
challenging. As profit margins are typically compressed and the
supplier market remains crowded, it is very likely that some
vendors will decide to exit in 2025, and it may become clearer
which ones will stay and win bigger market shares.

© 2025 GSMA Intelligence @GSMAi www.gsmaintelligence.com

 IoT and enterprise markets: five trends to watch in 2025

Implications
Mobile operators Network vendors
• Capitalise on AI risks – According to our Global Digital • Be realistic about the private networks opportunity – In
Transformation Survey 2024, on average across the 10 2025, some private network vendors that are struggling to
sectors and 21 countries we surveyed, enterprise spend on scale up the business might question their future strategy.
digital transformation will be equivalent to 10% of enterprise However, the benefits for early adopter enterprises are clear
revenue during 2024–2030. AI will capture the biggest share (87% of operators’ private networks customers state they
of spend among technologies beyond connectivity (14%). This have achieved expected benefits), while only a tiny part of the
presents a significant opportunity for suppliers of AI large pool of enterprises has adopted the technology.
technology, including operators, who will need to be very According to our Global Digital Transformation Survey 2024,
deliberate about which needs to target. According to the same only 2% of enterprises globally had adopted private networks,
survey, enterprises’ main needs are around enhancing illustrating that the opportunity is largely untapped. From 2025
security, while security, privacy and confidentiality of data are onwards, network vendors that intend to stay in the business
key implementation barriers. Therefore, offerings will resonate should seek their management’s and investors’ support for a
more if they are about tapping into enterprises’ need for strategy that accounts for realistic project delivery timelines
security and resilience, such as private networks that and adequate investment in the longer run.
safeguard operations and data exchange in and out of
enterprises’ sites and across multiple places. Operators can
also utilise their cloud infrastructures for supporting Enterprises across vertical sectors
enterprises’ adoption of genAI. For example, Orange Business
Services offers a GPU-as-a-service solution to customers in • Tap into networks (operators and vendors) for AI – AI
need of dedicated access and control of AI-capable servers. adoption comes with several challenges for enterprise
adopters. According to our survey, the top challenges include
• Double down on mission-critical 5G – It is no secret that cost of implementation (31% of respondents), complexity of
operators are under pressure to monetise 5G. A segment that integration (29%) and security risks (29%). In 2025,
will emerge as an important opportunity in 2025 is 5G enterprises will want to optimise where to run AI (on-premises
networks that are configured for mission-critical applications. versus in the cloud) in order to be secure. For this, enterprises
Operators are well positioned to take advantage of this should look for the right partners with capabilities in securing
segment thanks to their established presence and natural fit connections of data centres and reliable data exchange
with relatively highly regulated environments where mission- across multiple sites. The wider networking ecosystem,
critical service support is needed. As a specific example, the including operators and vendors, has a role to play here. Our
wider public sector (government agencies, municipalities) data suggests that, at the end of 2024, around 38% of
should be targeted, as larger-scale public safety networks are enterprises working with operators in some form for AI are
in scope for mission-critical support features. These include getting help in integrating multiple networks needed for AI
priority functions, secure and reliable communications, live initiatives and a similar share for securing their AI applications.
video sharing, coverage during disruption and emergencies
for use cases by the police, fire fighting, hospitals and
emergency services. Indicatively, the FirstNet Authority plans
to invest $8 billion to upgrade FirstNet, the US’s national
public safety network, from 4G/LTE to 5G. Operators in
Europe should target the public safety and defence sectors,
as the relevant investment in Europe will increase during 2025
as a result of geopolitical uncertainty. Additionally, they can
upgrade the communications of European railways,
encompassing dense freight and passenger train networks,
with the implementation of 5G FRMCS as a replacement path
of existing GSM-R.

Related reading Author

The rise of digital industries: navigating enterprise Christina Patsioura, Lead Analyst, IoT and Enterprise
needs, investments and supplier decisions

Enterprise Opportunity 2024: operator strategies, plans

and expectations

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 Digital consumer: five trends to watch in 2025

INSIGHT SPOTLIGHT

Throughout 2024, we have analysed important To help navigate the year ahead, we are releasing a
developments and innovation spanning all areas of the series of reports that highlight the key trends to watch
telecoms industry and wider digital ecosystem. How will in 2025 and the implications for ecosystem players.
the industry evolve in 2025? Which trends will continue The analysis covers five key areas: 5G and network
to run their course? Which trends will take a new transformation; spectrum; IoT and the wider enterprise
direction? And which will enter the fray for the first market; the digital consumer; and fixed and pay-TV
time? markets. This Insight Spotlight addresses the digital
consumer.

Analysis
Monetisation of 5G adoption will be a pressing objective handhelds, there have been many new gaming handheld launches
With 2 billion 5G mobile connections at the end of 2024 (roughly (e.g. MSI and Acer), spurred on by the Nintendo Switch’s success.
five years since launch), 5G adoption has certainly been fast. While The momentum behind these devices is expected to pick up in
adoption will continue to grow, reaching nearly 30% of total 2025, with Nintendo likely to announce a new Switch by Q1 2025
connections by the end of 2025, monetisation will be more pressing and Microsoft’s reported work on an inaugural Xbox gaming
than ever. So far, progress has been mixed. Looking at the 10 handheld adding a boost to gaming handhelds in general.
markets that had achieved over 40% 5G adoption by mid-2024,
only half were able to invert the trend of declining ARPU. In 2025, Extended reality, away from hype, will continue to make
we expect a bigger push from operators on 5G monetisation quiet progress
through different routes, from traditional service/content bundling to
newer approaches such as speed-based tariffs and experience- The success of extended reality (XR) remains elusive – only 5% of
based propositions that target differentiated services (already consumers own an XR (e.g. augmented reality, mixed reality and
launched by operators such as China Mobile, China Unicom, AIS virtual reality) headset. In 2025, XR hardware should make
Thailand and Telefónica). progress across several key areas, including display, cameras and
sensors, gesture sensing, rendering and chips. Following the
success of Meta’s smart glasses and its unveiling of the Orion
AI will attempt to be the new differentiator in devices
prototype, augmented reality glasses are likely to be a key focus of
Much of the work centres around the use of advanced AI such as innovation. Samsung could also give XR a helping hand in 2025,
generative AI (genAI) for delivering a more intelligent, personalised as it is reportedly re-entering the market with a new XR headset.
and engaging consumer experience. In 2025, we expect genAI to Beyond hardware progress, XR content creation should also
be increasingly prevalent in consumer devices, running either on- advance through the increased application of genAI, which will help
device, in the cloud/edge or in a hybrid format. However, in our lower content costs and build time.
August 2024 consumer survey, AI capabilities ranked towards the
bottom among the most important smartphone features driving eSIM adoption will expand beyond the US
consumers’ purchasing decisions (the top five features were
battery life, durability, security of data, cost and camera quality). 2024 has been a remarkable year for eSIM commercialisation.
This partly reflects the early days of advanced AI’s integration in There will be three important things to watch in 2025. The first is
devices but is also an important reminder about the need to deliver progress with consumer adoption of eSIM beyond the US (where
real utility to consumers for scalable take-up. eSIM penetration is already at 30% following the launch of eSIM-
only phones in 2022). Now that consumer awareness of eSIM has
Gaming consumption will increasingly shift beyond reached 50% on average (across major developed mobile markets)
and operators are starting to promote eSIM when onboarding new
fixed consoles
customers or as part of their digital-first/digital-only consumer
A consumer shift away from fixed gaming consoles is underway, as propositions (including digital brands), there should finally be an
reflected, for example, in declining Xbox hardware revenue and uplift in adoption. The second is the transition to eSIM-only
lower PlayStation 5 unit sales. In 2025, we expect consumers to smartphones beyond the US. While it’s difficult to predict if there
increasingly adopt cloud gaming and gaming handhelds. According will be new launches in 2025, launching eSIM-only phones is a
to our survey, among gaming service subscribers, 57% held a matter of when, not if. The third is the growing use of eSIM for
cloud gaming subscription. This user base is expected to grow, as international roaming; beyond being a primary use case for eSIM, it
it will be facilitated, for example, by big gaming players such as allows consumers to get familiar with the use of eSIM.
Microsoft getting firmly behind cloud gaming. Looking at gaming

© 2025 GSMA Intelligence @GSMAi www.gsmaintelligence.com

 Digital consumer: five trends to watch in 2025

Implications
Mobile operators OEMs
• Leverage 5G tariff innovation to deliver an ARPU uplift – • Entering a new phase for device innovation – Rapid
According to our August 2024 consumer survey, consumers continuing innovation in AI – including small language models,
who intend to upgrade to 5G are willing to pay 5% extra for multi-modality, genAI agents and improved large language
their 5G mobile subscription, on average, versus what they model (LLM) reasoning techniques (e.g. chain of thought) –
pay for their current 4G subscription. This is positive news for augurs well for AI capabilities emerging as a differentiating
operators. Looking at the financial benefit that some of the 5G factor for consumers in device purchases. As with most new
monetisation methods could have, our research finds that the technologies, flagship models from OEMs will likely act as a
three markets with the highest share of speed-based tariffs showcase for advanced AI before it cascades down to the rest
(Finland, Switzerland and Norway) are among the top of the device range. OEMs with scale could also look to
performers in terms of ARPU growth. Everything else being develop their own genAI, as Samsung is doing in partnership
equal, consumers in leading speed-based tariff markets are with Naver, with the aim of controlling what is likely to become
prepared to pay $14 extra per month to increase their an important technology in consumer devices. Also, in terms
download speeds from less than 100 Mbps to the maximum of monetising genAI in their devices (apart from the natural
speeds available. The ongoing rollout of 5G standalone and price uplift of flagship models), OEMs could charge an explicit
early commercialisation of 5G-Advanced should help fee. For example, Amazon is reportedly looking to offer its
operators deliver enhanced network performance and user Titan-LLM-refreshed Alexa under a subscription plan,
experience, as well as innovative, revenue-enhancing potentially launching in 2025.
services for consumers. Customer segmentation will be key to
operators’ monetisation efforts.

Gaming providers

XR ecosystem players • Partnerships to promote cloud gaming – Like with over-

the-top (OTT) video, partnerships with other gaming
• Filling in the gaps – Apple, with the launch of its Vision Pro ecosystem players (e.g. gaming studios, super aggregators
XR headset in February 2024, set a steep new performance and operators) will be a key aspect of cloud gaming providers’
benchmark for XR headsets. However, according to various efforts to boost cloud gaming adoption. For example, one such
industry estimates, sales of the Vison Pro have since trailed partnership is between Microsoft and Amazon, with the Xbox
market expectations, mainly due to its high retail price ($3,500 Game Pass service being made available on the Fire TV
in the US). In a lesson from this, as XR OEMs push hardware Stick. Operators will be a crucial partner to help cloud gaming
innovation and adjust to higher specifications even for their providers optimise subscriber acquisition costs and reduce
base headset models (due to the influence of the Vision Pro), sign-up friction, especially in developing markets where
they will need to balance this with consumer affordability for payment infrastructure is often inadequate. There are different
wide-scale adoption. Indeed, Apple itself is reportedly types of partnerships between operators and cloud gaming
expected to launch a cheaper version of the Vision Pro in providers, including promotional (no operator billing),
2025. XR providers will also need to redouble their efforts to integration (e.g. billing, cloud gaming via set-top box) and
expand XR content libraries beyond gaming to foster mass commercial (revenue sharing).
appeal for this technology. Apple is again taking the lead here,
with the Vision Pro now having more than 2,500 native spatial
apps and 1.5 million compatible apps for VisionOS 2, covering
a multitude of use cases such as productivity, social,
entertainment, live sports, shopping, creativity, finance,
learning and health.

Related reading Authors

Digital gaming: the rise of cloud, mobile and new tech to Anshu Goel, Lead Analyst, Digital Consumer
enhance the gamer experience
Pablo Iacopino, Head of Research and Commercial
Five years of 5G for consumers: how user behaviour Content
and experience are changing

© 2025 GSMA Intelligence @GSMAi www.gsmaintelligence.com