As the world continues to move at an unprecedented pace toward digital transformation, the telecommunications industry finds itself at a pivotal juncture. The explosive growth of connected devices, the rise of cloud-based services, and the shifting expectations of both consumers and enterprises have brought the limitations of traditional telecom revenue streams into sharp focus.

Operators can no longer rely on legacy services such as voice calls, SMS messaging, or even basic mobile data packages to fuel sustained business growth. These services, once the backbone of telecom profitability, are becoming commoditized, pressured by declining margins, intense market competition, and the widespread saturation of subscriber bases in both developed and emerging economies.

With mobile voice and SMS revenues stagnating and average revenue per user (ARPU) averaging just USD 3–USD 5 per user monthly since 2019, new digital verticals offer a transformative path forward. The continent’s digital economy is projected to hit USD 712 billion by 2050, with telecom operators uniquely positioned to monetize key segments such as fintech, enterprise cloud, digital content, and IoT.

McKinsey estimates the African fintech market alone could grow by 150% and generate USD 40 billion in annual revenue by 2025, while cloud and data services could unlock over USD 2 billion by 2026 and generative AI (GenAI) could stimulate around USD 2.1 billion to USD 3.2 billion in economic value for African operators.

These monetary opportunities are driving telecom operators to redefine their role in the digital age. Operators like MTN and Safaricom are already reaping the rewards. MTN’s fintech revenue increased by 46.4% in 2023, and Safaricom’s M-PESA now accounts for nearly 50% of its service revenue. Instead of functioning solely as utility-like providers of connectivity, operators are now playing a more dynamic, innovative role within the broader digital ecosystem.

Data monetization, AI-powered services, the convergence of 5G and edge computing, the early-stage development of 6G, and the reinvention of business models represent a roadmap toward long-term, innovation-led growth.

Telecom operators are now deploying advanced data analytics platforms to convert raw information into actionable intelligence. The insights derived can fuel business-to-business (B2B) products like targeted marketing, urban planning tools, and customer experience (CX) solutions. For example, by analyzing real-time movement data, telcos can assist municipalities with traffic optimization or support retailers with choosing store locations.

Vodafone and Orange are already leveraging their analytics units to create value-added services (VAS) for enterprises, combining data streams with machine learning (ML) to deliver tailored, contextual insights.However,monetizing data must be done responsibly to avoid regulatory pitfalls and build customer trust. This, in turn, becomes a brand asset; privacy itself can be monetized through trust-based offerings.

Artificial intelligence is reshaping telecom operations and creating entirely new revenue streams.

From internal automation to customer-facing services, AI is becoming central to the monetization strategy, which, if adopted, could contribute up to USD 2.9 trillion to Africa’s economy by 2030, according to the GSMA.

AI tools can optimize network performance, predict outages, and automate troubleshooting. These capabilities result in cost savings and improve service reliability, critical in reducing churn and increasing lifetime customer value. Predictive maintenance, for instance, can prevent service disruptions before they occur, reducing the need for expensive on-site repairs. AI can also dynamically allocate bandwidth based on usage patterns, enhancing customer experience without adding infrastructure costs.

AI chatbots and recommendation engines are allowing telcos to deliver hyper-personalized service experiences. These virtual assistants can handle billing inquiries, troubleshoot devices, and even upsell services based on a user’s behavior.

Fraud detection and cybersecurity are becoming AI-driven as well. With real-time monitoring and machine learning, telcos can detect unusual patterns that signal potential breaches or fraud attempts. These AI-based tools are increasingly being offered as part of managed service packages to businesses, adding another dimension to revenue generation.

While much hype has surrounded 5G, the technology’s true commercial potential lies in its convergence with edge computing. Together, they allow operators to support next-generation applications with ultra-low latency and high-speed connectivity.

The enterprise segment represents one of the most promising revenue avenues for 5G. Industries such as manufacturing, logistics, healthcare, and agriculture are embracing private 5G networks to enable smart operations. These networks support automation, real-time monitoring, and connected machines, all with guaranteed reliability. Telcos can generate revenue not just by supplying the connectivity, but by bundling infrastructure, network slicing, analytics, and cybersecurity as a complete solution.

Edge computing brings processing power closer to the user, minimizing latency and supporting new use cases such as augmented reality (AR), virtual reality (VR), gaming, autonomous vehicles (AVs), and smart city applications. Telecoms that invest in edge infrastructure can offer edge-as-a-service (EaaS) to businesses, creating a recurring revenue stream.

Although 6G may still be years away, telecom operators are already positioning themselves to shape its standards and capture future value. Early investment in research and development (R&D) and collaboration with industry leaders will help telcos set the stage for monetization when 6G begins rolling out.

Unlike previous generations, 6G is expected to yield faster speeds. It will enable interconnected environments where physical and digital realities merge. Technologies such as holographic communication, multi-sensory experiences, and digital twins will create new business cases.

To fully capitalize on new technologies, telecom operators must transition from traditional carriers to digital service platforms. This shift is as much about mindset as it is about technology.

Instead of focusing solely on connectivity, many operators are launching or combining telecom services with digital content, e-commerce, and financial services.

For example, MTN’s ayoba app combines messaging, content, and mobile money services in a single platform, and Safaricom’s M-PESA ecosystem now addresses every aspect of daily life in Kenya, from banking, to shopping, to utility payments. By owning or co-owning platforms, telcos can earn a portion of every transaction and gather rich data to further personalize services and increase customer loyalty.

Strategic partnerships are essential. Whether it’s working with hyperscalers like Microsoft Azure and AWS to offer cloud services, or co-creating AI-driven apps with startups, collaboration allows telcos to diversify their revenue base without bearing the full cost or risk. Revenue-sharing models and application programming interface (API)-driven ecosystems enable third parties to innovate on top of telecom infrastructure, giving rise to new services that ultimately benefit both providers and end-users.

A key transition is the move towards the business-to-business-to-end-user (B2B2X) model, where telcos empower businesses to deliver services to end consumers. In this setup, telcos act as enablers, providing infrastructure, security, and AI tools to facilitate the value chain. The end user could be a hospital offering remote diagnostics, a factory deploying autonomous robots, or a school streaming interactive classes. This model positions telcos as indispensable players across industries.

Interestingly, the GSMA reported that global enterprise spending on services like AI, cloud, API integrations, and IoT reached USD 1.16 trillion last year. Telcos could capture up to 35% (USD 400 billion) of this B2B revenue.

For telecom companies to thrive, not just survive, in the years ahead, they must move decisively beyond their traditional role as infrastructure providers and embrace a new identity as technology enablers and innovation leaders.

To navigate this transformation successfully, telecom operators must begin by reimagining data as one of their most valuable strategic assets. Simultaneously, AI must become an integral layer woven into the very fabric of telecom operations to support operational efficiency, new service categories, and recurring revenue streams. Moreover, 5G and edge computing must evolve into intelligent platforms, rather than being treated as isolated infrastructure upgrades. For telcos, monetization lies in delivering end-to-end solutions that integrate connectivity with edge processing, analytics, and managed services, specifically tailored for enterprise verticals. Looking further ahead, operators that invest early in 6G research and proactively explore future monetization models will be best positioned to lead the next era of connectivity.

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Crucially, the very architecture of business models in telecom must evolve. The old linear model—where services flow from the network to the end user—is being replaced by multidimensional ecosystem participation. This means embracing flexibility, forging co-creation partnerships, enabling open APIs for developers, and becoming a platform upon which others can innovate.

By collaborating with cloud providers, tech startups, and industry specialists, telcos can extend their reach beyond connectivity and into areas like fintech, entertainment, e-commerce, and smart infrastructure.

In this redefined landscape, the telecom leaders of tomorrow will shape how industries operate, how citizens engage with services, and how innovation flows across borders. The age of monetizing innovation has arrived, and those operators willing to adapt, invest, and collaborate will unlock entirely new revenue streams.