2025 Telecom Trends: Building the Digital Economy of Tomorrow

As we step into 2025, the telecom sector stands on the brink of significant transformation. Fuelled by rapid technological advancements, shifting customer expectations, and a growing emphasis on societal responsibility, the industry is poised to play a pivotal role in shaping the global digital economy. As new technologies like 6G and AI take center stage, telecom companies should navigate this dual responsibility of advancing technological progress while remaining committed to social and environmental goals. Going forward, telecom sector will not only redefine its own future but also play a critical role in shaping a more connected, efficient, and equitable world.

One of the most significant catalysts for this change is the growing role of AI. This transformative force is now embedded across telecom, media, and technology sectors, altering how businesses operate and deliver value. The KPMG in India IMC Report 2024 - Redefining TMT with AI shows that 55% of telecom companies have already implemented AI at scale, with another 37% actively scaling their solutions. While challenges like talent shortages and high costs remain, the potential of AI to provide a competitive edge is undeniable. In fact, 65% of Indian CXOs believe that generative AI will be a key driver of long-term growth. In addition to, Satellite Communications is also likely to gain traction with expectations in amendments to policy and regulations to promote this on the larger scale.

As we look to 2025, it’s clear that the telecom industry is poised for profound transformation. From harnessing the power of AI to diversifying revenue streams and advancing next-gen networks, these trends will not only reshape the sector but also lay the foundation for a future that is more connected, efficient, and equitable.

Here are five critical trends to watch:

Digital, Automation at Scale

The adoption of digital technologies, coupled with automation and artificial intelligence (AI), is reshaping the telecom landscape. AI is no longer a futuristic aspiration; it’s a key driver for operational efficiency and innovation. Predictive maintenance, powered by AI, is helping Telecoms to minimise downtime and optimise network performance.

Automation, on the other hand, is streamlining workflows, enabling faster service delivery, and reducing costs. For instance, automated customer service bots and AI-driven insights are enhancing customer interactions. Telecoms are expected to continue to invest heavily in modernising their infrastructure, including deploying more advanced towers, fibre optic networks, Giga data centers and enhanced spectrum usage. As per KPMG 2024 Technology and Telecommunications CEO Outlook, 55% of organisations in the TMT sector have pioneered AI and achieved full-scale implementation of select use cases. At the same time, 32% of survey respondents are in the gradual phase of scaling their AI tech and 13% are in the initial planning stages of AI adoption. As networks become more complex with the expansion of 5G and the emergence of 6G, AI will be indispensable in managing and optimising these infrastructures. With growing Digital adoption, investments are also seen in bringing more submarine cables/landing stations in India, powered with the growth of Giga factories.

Move Towards Responsible AI

As AI becomes integral to telecom operations and services, the need for responsible AI practices is paramount. Telecoms are not just deploying AI for operational gains but are also emphasising fairness, transparency, and accountability in their AI systems to address concerns related to bias, data privacy, and security. India’s recent announcement of the National AI Mission further underscores the country’s commitment to harnessing AI responsibly by fostering innovation, promoting collaboration among stakeholders, and ensuring ethical AI deployment. Telecom operators, as pivotal contributors to this mission, have a unique opportunity to align their AI strategies with its principles, advancing progress while maintaining inclusivity, security, and trust.

Telecoms are also collaborating with regulators and industry bodies to establish guidelines for responsible AI deployment. By prioritising ethical AI, telecom operators can build trust with customers and stakeholders while driving innovation in a sustainable manner. As highlighted in the outlook report , nearly 70% of operators are aligning AI deployments with international ethical AI standards, reflecting the growing emphasis on responsible AI practices.

Bridging the Talent Gap

As telecoms accelerate AI integration and embrace Generative AI as a cornerstone for sustained growth and profitability, the sector faces a pressing challenge—a shortage of skilled professionals. While projections indicate an excess of 1.3 million skilled workers in India’s TMT sector by 2030, the present reality reveals a gap of approximately 150,000 professionals in critical domains like 5G, AI/Big Data Analytics, and Robotic Process Automation (RPA).

To address this imbalance, telecom and technology companies must prioritise building robust talent pipelines. Insights from KPMG 2024 Technology and Telecommunications CEO Outlook report reflects a pragmatic perspective, with over 33% of CEOs expecting 31–50% of their workforce to be AI-ready by FY26, and over 9% envisioning more than half of their employees becoming AI-equipped. This underscores a growing commitment to embedding AI proficiency across organisational teams.

5G Expansion and the 6G Roadmap

The rollout of 5G networks continues to gain momentum, enabling ultra-low latency, massive connectivity, and unprecedented data speeds. By 2025, 5G is expected to be the backbone of smart cities, autonomous vehicles, and the industrial Internet of Things (IoT). Telecom operators are heavily investing in expanding 5G coverage while exploring revenue opportunities through innovative use cases.

Simultaneously, the industry is setting its sights on 6G, which promises to deliver even more transformative capabilities. With concepts like holographic communication and ubiquitous connectivity, 6G could redefine how we interact with technology. Although still in the research phase, telecom operators and governments are actively shaping the 6G roadmap, ensuring the next leap in connectivity aligns with societal and economic goals. There is also a notable trend for Core technology transformations, with telecoms transitioning to technology-driven organisations.

Looking Ahead

The telecom industry in 2025 stands at an exciting juncture, characterised by rapid technological evolution and an expanding role in the global digital ecosystem. By embracing AI and automation, diversifying into new markets, transforming core technologies, advancing 5G and 6G, and prioritising ethical AI practices, telecom operators are setting the stage for long-term growth and resilience. As these trends unfold, the sector will not only enhance connectivity but also create new possibilities for businesses, governments, and individuals, reinforcing its position as a cornerstone of the digital future.

A version of this article was published by Communications Today. The same can be read here

Co-Authored with Yogesh Sharma, Director, Digital Strategy and Insights, KPMG in India