Telco Magazine November 2025 | Page 146

AI IN TELCO

For decades, the telecommunications business model was straightforward: build robust networks and sell connectivity. But in the era of 5G, cloud computing and the Internet of Things( IoT), simply providing a faster“ pipe” is no longer a sustainable path to growth. Operators face immense pressure to monetise vast network investments while competing in a market where value is rapidly shifting from connectivity to intelligent services. The key to navigating the new landscape lies in a transformative technology: machine learning( ML). As early as 1959, Arthur Samuel, an American computer scientist and electrical engineer, renowned for his foundational work in AI and machine learning, said:“ Machine Learning is the field of study that gives computers the ability to learn without being explicitly programmed.” By embedding AI and ML into the core of their operations and service offerings, telcos can evolve from mere connectivity providers into indispensable enablers of the digital economy. The evolution requires a new mindset, one that views the network not as infrastructure, but as a dynamic, data-rich business platform.

From connectivity provider to ecosystem enabler The rollout of 5G represents far more than an incremental upgrade in speed and bandwidth. It is a foundational technology that unlocks the potential for a host of new, high-value industrial and enterprise applications. However,
operators need to rethink their role in the value chain fundamentally. The future belongs to telcos that can successfully leverage their network assets to build and orchestrate entire digital ecosystems.
The transition involves moving beyond horizontal connectivity services and developing vertical-specific solutions for sectors such as manufacturing, logistics, healthcare and transportation. According to Shashank Volety, VP of the Telecom, Media & Entertainment Practice at Hitachi Digital Services, the shift is central to the 5G opportunity.“ At Hitachi Digital Services, we see 5G as more than just
146 November 2025