The telecom industry is facing some headwinds, but the best way to overcome them is by innovating, collaborating, and disrupting the status quo. That was a focal point at the recent Mobile World Congress that took place in Barcelona.
The world’s largest telecom event, organized by GSMA (formerly the Global System for Mobile Communications Association), brings together industry leaders, startups, and technology experts to showcase the latest tech and innovations each year.
The four-day event drew speakers and participants from around the world and included a keynote session, titled “The Gateway to a New Future,” where telecom leaders discussed the industry’s challenges and opportunities.
Regulation, ROI remain challenging
Speakers were optimistic overall when looking to the future but didn’t shy away from calling out bumps in the road.
The telecom industry is plagued by an “extremely low growth rate” of just 2%, noted Sunil Bharti Mittal, chairman of Bharti Airtel Ltd. Growth is being hindered by taxes and infrastructure costs. Brands are funding towers, radios, data center, fibers, and other capital needs, he said – yet they only reap an average return of 4% on those investments.
“Something needs to give; something has to change. Time for us to reset this industry,” he said. “The entire ecosystem is struggling today.”
Telecom brands also have watched much of the value they create be siphoned off by other industries, said Benedicte Schilbred Fasmer, president and CEO of Telenor Group.
“Telecoms have always been a force for progress, shaping societies and economies. We have multiple examples of where our industry invested heavily in cutting-edge infrastructure, only for the monetization to be captured by others,” she said. “We can’t let that happen again. We must be better at capturing the value we actually create.”
European telecoms are at a particular disadvantage in the current landscape, said Telefonica Chairman and CEO Marc Murtra. Excessive regulation, fragmentation, and insufficient industry returns are hampering European companies and making it so they can’t compete with U.S.- and China-based telecoms. European brands must adapt, even if that means consolidating, he said.
“If this does not happen, we think Europe’s position in the (telecom) world will continue to dwindle,” Murtra said.
Mining opportunity from obstacles
While multiple panelists spoke of challenges facing the industry, all said the current landscape presents some opportunities for brands bold enough to seize them.
“We are at a critical inflection point where both connectivity and technology are transforming again. Our customer needs are getting more sophisticated,” said Vicki Brady, CEO and managing director of Telstra Group Ltd. “There is no version of the future that does not rely on technology in some form, and it all needs to be connected. So I see a massive opportunity as we look forward.”
Evolving technologies will play a critical role in setting the industry up for success, speakers agreed. AI, for instance, is re-engineering production methods; creating new ways of doing business; and leading telecoms in networked, smart, and low-carbon directions, said China Mobile CEO Biao He.
“AI technologies have evolved from tools to fundamental infrastructure,” he said.
Another area that holds great promise, he said, is Open Gateway. The program, started by GSMA, is a global initiative to standardize and open up telecom networks for developers. By providing access to network capabilities, Open Gateway aims to spur innovation, accelerate digital transformation, and make it easier for developers to integrate with different operator networks.
‘Disrupt the status quo’
Speakers at the keynote session agreed that the industry needs to evolve to meet changing customer needs, business climates, and technological advances.
“There is a massive opportunity created by the change that is going on,” Brady said. “It will create both economic and social benefits and we’ve got an opportunity to share in that value, but it absolutely requires us to do things differently, to disrupt the status quo.”
There has never been a better time for companies to “step into these opportunities,” she said.
“I do believe this moment is a very different moment for us as an industry,” she said. “We're actually seeing the conditions to disrupt commercial models, to change from modernizing our networks to shifting the architectures our businesses are based on, to opening up instead of bunkering down.”
But collaboration will be key to success, she said, and that’s something telecoms have historically shied away from, Brady said.
“When I first spoke at Mobile World Congress (in 2023) I spoke about a mindset shift needed, that we needed to absolutely collaborate – with each other, with other sectors – rather than defending,” Brady said. “Two years on from that, I believe that is more important than ever.”
Panelists also mentioned how the evolving telecom landscape requires companies to remain customer-centric and place increased attention on trust and security measures. Watch keynote sessions from Mobile World Congress and learn more about the event here.
Photo credit: copyright 2025 GSMA / MWC
