- Telcos are split on whether to stick to infrastructure or become full-service AI players
- Leaders like Bell Canada and AT&T are achieving measurable returns
- Legacy systems and cultural resistance remain the biggest obstacles to AI transformation
Telcos and other communication service providers face a decision that will define the industry over the next generation: What role should they play in the AI economy? Many are choosing to remain as infrastructure providers, while others are committing to becoming full-service participants in the new world.
We explore the telco identity crisis — and a whole lot more — in our latest Fierce Network Research report: "Risk, Reward and Revenue: Defining telcos' role in the AI economy."
In researching the report, we surveyed 500 technology decision-makers (that's not a typo — five hundred!) across 40 countries to reveal how the industry is grappling with identity in the AI economy.
The findings show a striking divide: 57% of operators believe they should focus on providing infrastructure, including networks and data centers, while 43% argue for a more ambitious role, either orchestrating AI ecosystems or becoming full-service participants in the AI value chain.
Are early AI adopters seeing results?
Early adopters are already seeing results. AT&T reports a twofold return in cash flow for every dollar invested in AI, focusing on hard, measurable outcomes rather than soft productivity gains. Bell Canada has set audacious targets to double its enterprise AI revenue by 2028, building what it calls a "sovereign digital spine" for Canada through its Ateko subsidiary and AI Fabric infrastructure initiative.
The research identifies critical assets that position telcos for AI success, including data center infrastructure, resilient high-performance network connectivity and deep relationships with both enterprises and governments. However, operators face significant hurdles, including difficulty making the business case for AI infrastructure and limited workforce availability. And legacy systems and operational inefficiencies are a big concern, with one executive noting that his telco's 145 years of accumulated technology debt makes data integration extraordinarily challenging. (Again, that's not a typo — it's easy to forget sometimes that telco history extends across literally three centuries.)
Successful implementations require what an AT&T executive calls "Goldilocks governance" — not so restrictive that it stalls innovation, but sufficient to ensure security and compliance.
The message is clear: telecommunications providers must modernize both infrastructure and business models or risk being left behind in the AI revolution.
Download the full report to explore in-depth case studies, implementation strategies and detailed survey results from AI leaders across the global telecommunications industry.
Learn how global communications leaders are making tough choices and benefit from their hard lessons in our latest Fierce Network Research report: "Risk, Reward and Revenue: Defining telcos' role in the AI economy."