• AI is expanding value for telcos from data transport to data compute. Specifically, telcos’ distributed networks position them to play in edge compute, critical for latency-sensitive AI use cases.
  • But this opportunity contested, with hyperscalers extending their platforms toward the edge and retaining control of developer ecosystems and workload orchestration.
  • Nevertheless, ‘edge AI’ represents a high-value opportunity for telcos across consumer and industrial applications where latency, reliability and network awareness are critical.


Limits of the traditional telco model built on selling data traffic is structurally constrained, resulting in flat revenues and margins in the face of continued traffic growth. AI workloads increase demand for both bandwidth and compute, but do not align with legacy pricing models, reinforcing the need for new monetization approaches.