Telcos Step Into the AI Race But Will Only See $4B in B2B Revenue by 2025
Telecom operators are starting to pivot their business-to-business (B2B) services toward the fast-growing artificial intelligence economy. Yet despite the excitement, AI-related B2B revenue from telcos is projected to hit just $4 billion in 2025, according to Omdia’s newly released Telco B2B AI Monetization Index.
“Telcos have a natural role to play as local and national AI services providers and strategic partners,” said Brian Washburn, Chief Analyst at Omdia. “It is early days, but the index highlights that monetization opportunities for telcos in the AI economy already extend well beyond connectivity.”
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The index, launched as part of Omdia’s Telco B2B Solutions Intelligence Service, offers a clear view of how telecoms are moving into the AI space. It benchmarks operators across four key dimensions: infrastructure (like data centers and fiber networks), AI service portfolios, partnerships and ecosystem strength, and regulatory readiness.
Despite the modest $4B revenue figure forecasted for next year, Omdia expects explosive growth ahead predicting a 65% compound annual growth rate (CAGR) in telco AI revenue through 2030. This rise will be fueled by demand for high-performance digital infrastructure and secure, sovereign AI services.
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Key insights from Omdia’s broader research reveal:
- A third of global network traffic will be AI-driven in 2025, hitting 10 zettabytes.
- Telcos are expanding beyond connectivity into AI data centers, platform hosting, and managed services.
- Small and mid-sized businesses (SMBs) are a primary market for emerging telco AI offerings.
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The report emphasizes that telcos are uniquely positioned to become critical players in the AI economy—not just through infrastructure, but as full-service AI partners. However, to truly unlock this potential, they must move swiftly and invest in expanding their role beyond traditional telecom services.
Omdia’s Telco B2B AI Monetization Index will be updated quarterly to track the industry’s progress.
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