Telecom Operators Accelerate AI Monetisation with New Revenue Models, Says GSMA Intelligence

Why It Matters

The shift creates high‑margin revenue streams for telcos and forces a strategic realignment with cloud giants, reshaping the competitive landscape of the telecom sector.

Key Takeaways

• Operators pivot AI from internal efficiency to revenue generation
• Three monetisation models: connectivity, compute, solutions partnership
• Partnerships reduce capital risk, accelerate market entry
• High‑margin AI services compete with hyperscalers
• Sovereign AI clouds address data‑sovereignty regulations

Pulse Analysis

The GSMA Intelligence report released at Mobile World Congress 2026 highlights a pivotal change in how telecom operators view artificial intelligence. After a year of focusing on low‑risk automation—chiefly chatbots and predictive maintenance—operators are now positioning AI as a core growth engine. Rising data traffic, energy costs and stagnant connectivity revenues have pressured telcos to diversify, prompting a strategic pivot toward services that can command premium pricing and stronger margins.

Three distinct revenue models are emerging. The AI Connectivity Provider leverages existing 5G and edge infrastructure to offer low‑latency, secure links for AI workloads, exemplified by Singtel’s Paragon platform and Reliance Jio’s enterprise connectivity suite. The AI Compute Provider repurposes network assets into GPU‑as‑a‑service and sovereign AI clouds, with Deutsche Telekom’s €1 billion Industrial AI Cloud and SK Telecom’s Haein platform leading the way. Finally, the AI Solutions Partner model sees operators co‑creating end‑to‑end solutions with hyperscalers and software vendors, as KDDI does with AWS and China Telecom does with its Xingchen large‑language model. These collaborations reduce capital exposure while delivering differentiated, localized AI services.

For the broader industry, this evolution signals a structural transformation. Telecoms are no longer merely conduits for data; they are becoming integral components of the AI value chain, competing directly with cloud providers on compute, latency and data‑sovereignty grounds. Success will hinge on the ability to build robust ecosystems, attract AI talent, and navigate regulatory landscapes. Operators that master these dynamics could unlock multi‑billion‑dollar revenue streams and redefine their role in the digital economy.