Verizon, AT&T, and T-Mobile have changed their business models.
Carriers are becoming way more than just your phone company now.
According to Dario Talmesio, Omdia's research director, telecom companies are now reaping the rewards of their strategies, and investors are showing renewed interest after previous poor valuations.
– Dario Talmesio, research director at Omdia, October 2025
The telecom market is stabilizing, with telcos viewed as reliable, profitable ventures appealing to investors.
Omdia projects a 2.8% CAGR for telecom revenue between 2025 and 2030. The sector has seen two years of record free cash flow, exceeding 17% of total sales, while capital expenditures are decreasing to roughly 15% of revenues.
Operating expenditure decreased only slightly, by 0.2% in 2024, despite automation and efficiency efforts. The impact of AI investments, especially generative AI, is still uncertain.
Omdia's research indicates that operators expect AI to significantly impact customer care initially, with network operations seeing the biggest changes later.
Verizon has initiated Project 624, an AI-driven customer service enhancement, and is using AI in public safety. AT&T is employing AI to enhance network prediction and response. T-Mobile intends to create an AI-based architecture for 6G networks.
The long-term benefits of AI investments remain to be seen.
Carriers are exploring revenue streams beyond traditional data plans by charging for speed tiers, gaming packages, enhanced routers, and additional Wi-Fi points. Many are venturing into smart home services, like energy management and security systems.
The industry is expanding its scope, with telcos offering AI infrastructure such as data centers, GPU-as-a-service, AI-powered colocation, and edge AI.
They are also introducing AI assistants, AI-driven network management, and GenAI products for businesses and consumers.
These tools are part of a broader effort to redefine telecoms beyond basic connectivity.
Operators are expanding beyond mobile service, offering home internet, gaming benefits, and smart home packages.
T-Mobile Mint Mobile recently entered the home internet market, signaling a move into this new era. The major US carriers—Verizon, AT&T, and T-Mobile—are transitioning into tech ecosystems.
While challenges remain, the outlook is improving.
Consumers increasingly rely on telecom companies. The hope is that as the industry stabilizes and profitability increases, customer satisfaction will become a priority.
One can hope.
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Use code IPHONE25 for data plans and global coverage, or sign up to automatically receive the discount.
We may receive a commission on purchases.
Check out the offer.
Use code IPHONE25 for data plans and global coverage, or sign up to automatically receive the discount.
We may receive a commission on purchases.
Use code IPHONE25 for data plans and global coverage, or sign up to automatically receive the discount.
We may receive a commission on purchases.