Mobile World Congress (MWC) 2025 in Barcelona has kicked off with a wave of optimism, bolstered on Friday last week by the launch of PwC’s Global Telecoms Outlook. The report projects global telecoms revenues to rise at a compound annual growth rate (CAGR) of 2.9% through 2028, adding approximately $200bn in incremental revenue.
Despite challenges such as rising costs and competition, PwC anticipates significant growth in specific areas. 5G subscriptions are expected to more than quadruple, from 1.79 billion in 2023 to 7.51 billion by 2028, positioning 5G as the dominant mobile standard from 2026. Additionally, cellular Internet-of-Things (IoT) services, particularly in the automotive sector, are projected to more than double, reaching $34.1bn in revenue by 2028, at a CAGR of 15.8%.
However, PwC advised that the telco industry must reinvent how it creates, delivers and captures value – including strategic investments in AI, fixed connectivity, digital infrastructure and working with investors and regulators to unlock this growth.
AI takes centre stage
Speaking of AI, it is of course a central theme of this year’s show. The GSMA hosted the GenAI Summit this morning, focusing on the journey from experimentation to transformation in Generative AI adoption. While 2024 saw telcos testing GenAI technologies, scaling these innovations to full production remains a key challenge.
The summit convened CEOs, CTOs, and AI leaders to discuss practical applications of GenAI; foundations for successful implementations; strategies for scaling deployments; and unlocking enterprise potential through scaled GenAI solutions.
Danielle Rios, acting CEO of Totogi, was one such leader, taking to the Summit stage to explain how telcos can unleash the power of AI, demonstrating how Totogi’s telco-specific ontological mapping breathes new life into legacy systems – enabling seamless cross-system interoperability without vendor lock-in.
Nokia also made headlines by introducing AI-powered Radio Access Network (RAN) solutions, utilising generative AI to reduce network slice creation from days to minutes. The company is collaborating with industry leaders like Nvidia, SoftBank, and T-Mobile to develop and deploy AI-powered networks and the supporting infrastructure, offering scalable and robust capabilities for AI processing and other services.
Even hardware is getting in on the AI act with Chinese smartphone maker Honor announcing a $10bn investment over the next five years to develop AI for its devices. Honor unveiled the “Honor Alpha” plan, a three-phase strategy to expand its business beyond mobile phones in a bid to lead an ecosystem of devices through AI. Honor also introduced a range of new devices, all emphasising innovative design and AI focus.
Consumer tech innovation: Smart devices with a purpose
Which brings me onto another story that caught my eye – the launch of a smartphone by HMD that claims to balance teen freedom and parental peace of mind. As the parent of an actual teenager (how did that happen?!) I was intrigued.
The Fusion X1 features robust parental controls, AI-driven content moderation, and durable design, making it a compelling option for families. Positioned as a balance between digital independence and security, the Fusion X1 caters to the needs of the TikTok generation while ensuring a safer mobile experience.
B2B, enterprise and telecoms consolidation
On the opposite side of the fence from the consumer trends coming out of Barcelona, Capgemini also published research around MWC highlighting the top priorities for B2B telecoms clients, revealing that 74% desire a simplified buying process; 70% value the creation and orchestration of an ecosystem; and 63% prioritise customisation over cost. Notably, 43% of respondents indicated a willingness to pay more for better customer service, including AI-powered self-service options.
Microsoft also made a significant announcement with the introduction of a telecoms-specific data model in Microsoft Fabric. This model is designed to unify all data for networks and telecoms companies, encompassing everything from network performance metrics to customer interactions, within a single analytics environment.
Last but not least, Telefónica’s chairman, José María Álvarez-Pallete, took the opportunity of an MC speakership to emphasise the need for greater consolidation among European telecoms operators to enhance the industry’s technological and competitive capacity.
He argued that regulatory frameworks should enable large telecoms companies to merge and scale, fostering innovation, 5G expansion, and AI-driven services, and positioned consolidation as essential for Europe to compete globally and drive sustainable growth in the digital economy.
Looking forward to seeing what day two of the show has in store!
