The Future of Telco AI, IoT, and Edge Computing: Key Takeaways from MWC25

Last week, our Growth Expert and Vice President of Research, Renato Pasquini , attended MWC Barcelona , where the world’s leading telecom companies unveiled ground-breaking innovations. Here are his key insights into the trends shaping the future of the industry:

Telco AI: The Rise of Intelligent Networks

MWC25 was a major showcase for AI-driven transformation in telecoms. Leading operators unveiled advancements that promise to redefine customer experience, operational efficiency, and network optimisation:

• Deutsche Telekom IT introduced the “AI Phone,” a cost-effective smartphone with on-device AI powered by Perplexity, competing with Apple Intelligence. The company also demonstrated AI’s role in enhancing customer experience, employee productivity, and network operations - projecting over €1 billion in savings by 2027.
• SK电讯 presented an extensive AI ecosystem, including AI data centres, GPU-as-a-service, AI base stations, orchestration tools, and AI-powered personal and infrastructure assistants.
• e& enterprise IoT & AI showcased AI applications in data centres and network operations, alongside futuristic AI-powered holograms and robots.
• The Global Telco AI Alliance (GTAA): formed by Deutsche Telekom, SKT , e&, Singtel , and SoftBank Group Corp. - aims to develop large language models (LLMs) tailored for telecoms. The focus? Enhancing customer experience, network optimisation, and fraud prevention while ensuring compliance with data privacy and sovereignty regulations.

IoT: Expanding Global Connectivity and Monetisation

Although AI dominated the spotlight, IoT remained a key theme, particularly in discussions around monetisation, global coverage, and ecosystem maturity:

• 5G IoT Summit addressed key industry shifts, including the push for global coverage, cloud-native platforms, and integration of satellite, public/private networks, and 5G RedCap.
• eSIM Advancements: With higher penetration in IoT than in the consumer sector, new eSIM standards (SGP.32) promise faster scaling but are expected to surpass existing specifications only by 2027.
• Satellite and NTN Integration: Operators and satellite firms are moving from pilot projects to commercial IoT deployments, redefining competitive dynamics.
• Major Telco Announcements:

o?? AT&T introduced Global SIM Advanced, discontinued NB-IoT in favour of LTE-M, and is testing 5G RedCap for a 2025 launch.

o?? Verizon expanded its IoT orchestration platform with new partners and highlighted its growing focus on cybersecurity.

o?? Deutsche Telekom announced factory-installed IoT modules with integrated nuSIM and satellite-based direct-to-device (D2D) services launching in Europe by 2025.

o?? Telenor IoT launched a 5G Solutions Lab and expanded into connected EV charging.

Edge Computing: The Next Frontier in AI and Automation

The expansion of Multi-Access Edge Computing (MEC) was another key trend at MWC25, with operators and vendors accelerating innovation:

• 8ra - Cloud-Edge Continuum: A major initiative involving 120 partners—including Telefónica, Deutsche Telekom, and TIM—announced a €7.8 billion investment to establish shared Edge infrastructure across 12 European countries.
• Company Highlights:

o?? Vodafone demonstrated MEC-powered IoT for sports venues and Mission Critical Communications for security.

o?? Verizon launched AI Connect, an AI inference service using MEC, and reported 5X year-on-year growth in MEC-driven revenue.

o?? Kyndryl showcased its leadership in mobile private networks, emphasising generative AI, 5G, and SDWAN applications.

• Key Vendor Innovations:

o?? 英特尔 introduced its new Edge AI platform.

o?? AWS Distribution launched new Outposts hardware tailored for telecoms.

o?? 爱立信 demonstrated AI-driven edge computing solutions.

Looking Ahead

MWC25 made one thing clear: the future of telecoms will be driven by AI, IoT, and edge computing. With significant investments in AI-powered networks, global IoT expansion, and scalable Edge solutions, the industry is on the brink of a massive transformation. As these technologies mature, the next few years will see telecoms unlocking new revenue streams, enhancing efficiency, and delivering more intelligent, connected experiences for businesses and consumers alike.

For more insights into the future of telecoms, feel free to reach out to Renato directly.