This report identifies key demand-side trends in the telecom industry that can help enterprises fine-tune their digital strategies. It also provides an overview of enterprise challenges in the telecom industry based on Avasant’s assessment.

Why read this Market Insights?

Telecom enterprises are accelerating the adoption of agentic and generative AI (Gen AI) globally to drive autonomous network operations and transform customer engagement. Investments in cloud-native and edge-native platforms are enabling ultra-low latency connectivity for advanced use cases, including industrial automation, immersive media, and connected healthcare. In response to evolving regulatory requirements, telcos are embedding zero-trust security frameworks and AI-powered threat detection across their digital estates. Increasingly, operators are moving beyond pilots to scale Gen AI for process automation, predictive assurance, and intelligent orchestration, unlocking new efficiencies and revenue streams across both horizontal and vertical business functions.

The Telecom Digital Services 2025 Market Insights™ aids enterprises in the telecom sector in identifying important market trends and challenges for any digital project they participate in.

Methodology

The industry insights presented in this report are based on the following: our ongoing interactions with enterprise CXOs and other key executives; targeted discussions with service providers, subject matter experts, and Avasant Fellows; analyst insights from primary and secondary research; and lessons learned from consulting engagements.

Table of contents

About the report (Page 3–4)

• • About the Telecom Digital Services 2025 Market Insights™ report
  • Key reports of Avasant’s Telecom digital services research

Executive summary (Pages 5–8)

• • Defining telecom digital services scope
  • Key drivers and enterprise response
  • In this report’s companion study, Telecom Digital Services 2025 RadarView™, the following service providers were recognized

Demand-side trends (Pages 9–15)

• • Agentic AI is evolving from an emerging innovation to a core enabler of autonomous telecom operations.
  • Generative AI is evolving from an experimental tool to a mainstream driver of transformation in the telecom industry.
  • 5G monetization remains a challenge; operators are shifting to subscription‑based NaaS and differentiated service tiers to meet evolving enterprise needs.
  • Enterprises are adopting digital twins to manage complexity, simulate disruptions, test design changes, and optimize processes across industries.
  • Telecom operators are adopting modular, cloud-native, and edge-native platforms to enhance network agility, scalability, and innovation.
  • Sustainability and ESG are driving green innovation and responsible growth in telecom.

Future outlook (Pages 16–17)

• • Telecom services are shifting from connectivity to enterprise transformation, powered by AI and automation.

Key contacts (Page 18)

Read the Research Byte based on this report. Please refer to Avasant’s Telecom Digital Services 2025 RadarView™ for detailed insights on the service providers and supply-side trends.