In 2025, the telecommunications industry is poised to undergo transformative changes that will redefine how businesses operate and interact with their customers. The Vodacom Research team continuously tracks industry trends, sharing insights with stakeholders frequently, and this latest Trends Bulletin highlights key developments on the journey to digital transformation that will shape the future of connectivity. 

In this blog post, we explore these trends and their strategic implications for C-level executives in corporate South Africa.  

The rise of telecom techcos  

The telecommunications industry is experiencing a fundamental shift as traditional telcos transform into technology-driven companies known as techcos. This transformation is fuelled by the need to boost new revenues, improve operational efficiency, and stay relevant in a fast evolving digital world.  

At the core of the rise of telecom techcos is the use of self-operating cloud network platforms, which rely on cloud technologies, automation, and artificial intelligence (AI). These platforms help create new income opportunities through AI-based services, network APIs, and network slicing. Despite this potential, fully automating network operations is still difficult, with only 28% of telecom companies expecting to reach this goal in the next three years.   

The accelerated rollout of advanced 5G network solutions is set to reshape industries in 2025, driven by the finalisation of the 3GPP Release 18 standard.

Major technology players, including AWS, Google, and Microsoft, are making significant inroads into the virtualised radio access network (vRAN) space. By combining vRAN functions with enterprise edge cloud infrastructure and using AI, these advancements will improve efficiency and reduce energy use.  

The impact of 5G technology on businesses  

5G technology is going to change how business operate in many industries, with network solutions that allow: 

- Enhanced efficiency and productivity. Ultra-low latency and high bandwidth enable time-sensitive applications such as remote surgery, real-time gaming, and autonomous vehicles.  

- Augmented edge computing. Businesses can process data closer to the source, benefiting industries such as fintech, mobile banking, and online gaming.  

- Immersive brand experiences. High-resolution video, 3D, 360-degree, and augmented reality (AR) capabilities empower businesses to create richer customer experiences.  

- Sustainable and efficient farming. 5G-driven IoT applications enable real-time field-level insights, improving sustainability and productivity in agriculture.  

Businesses using 5G network solutions 

These examples show how 5G technology is transforming organisations, making them more efficient, sparking innovation, and creating new business opportunities:   

- Vodafone and Ford UK. Implementing a 5G private network has improved Ford’s production line efficiency, reduced downtime, and enhanced operational performance.  

- Vodafone Business. By integrating 5G with edge computing and AI, Vodafone has pioneered smart city solutions, remote surgery, and industrial automation in the Asia-Pacific region.  

- Smart factories. Adoption of 5G technology has led to increased automation, enabling car-to-car communication for hazard detection, fully autonomous vehicles, and enhanced last-mile delivery via drones.  

Preparing for digital transformation 

The telecommunications industry is set for significant advancements in AI, 5G network solutions, automation, and network APIs in 2025. As network infrastructures evolve and regulatory frameworks develop, adopting emerging technologies will be crucial for innovation, competitiveness, and sustainability.  

AI in telecoms and generative AI adoption  

AI is reshaping the telecommunications industry, with more companies adopting open-source and specialised language models. This makes AI more accessible and customisable for business applications. For instance, IBM and other providers offer both open-source and commercial large language models (LLMs) tailored to various business needs. Smaller language models (SLMs) are also gaining traction due to their lower resource requirements and adaptability. 

AI-powered customer engagement  

One key use case for AI in telecommunications is automated customer service through AI-powered chatbots and virtual assistants. These AI agents enhance first-tier customer interactions, reducing response times and improving service efficiency.  

The evolution of mobile connectivity  

The eSIM ecosystem is experiencing rapid growth, driven by new standards that enhance scalability and adoption across IoT and consumer markets. Connectivity providers are evolving their platforms to offer more flexible, scalable solutions, including expanded regional options and streamlined management systems.  

Business applications of eSIM technology  

Organisations are using eSIM technology for:  

- Seamless IoT deployments. Enabling global asset tracking and remote management.  

- Enhanced enterprise mobility. Providing employees with flexible, multi-network connectivity.  

- Disaster recovery and continuity. Ensuring uninterrupted connectivity through satellite direct-to-device (D2D) services. 

Vodacom’s Digital Co-X capability 

As these trends develop, Vodacom’s Digital Co-X capability is a key tool for businesses navigating digital transformation. Digital Co-X is a disruptive digital transformation team within Vodacom Business that helps optimise Vodacom’s digital presence in the enterprise market. The team works with clients to create innovative digital ideas beyond traditional telecom services, unlocking new ways to use digital platforms.  

Bridging strategy and value realisation 

Using a consultative approach, Vodacom Digital Co-X aligns business plans with technological benefits, ensuring that organisations leverage the right digital tools for growth. By working with Vodacom’s extensive network of partners, it delivers complete, end-to-end solutions tailored to business needs. The initiative also drives innovation through impactful digital and financial inclusion projects, fostering long-term progress. Additionally, Vodacom Digital Co-X supports collaborations on environmental, social, and governance (ESG) issues, reinforcing its commitment to sustainable and responsible business practices.

Key takeaways for C-Level executives 

- Invest in AI and automation to enhance customer engagement and operational efficiency. Leverage 5G and IoT to drive industry-specific digital transformation. 

- Adopt cloud-native architectures for scalable and flexible network management.  

- Foster ecosystem partnerships to create new business models and revenue streams.  

If you are a Vodacom Business customer, contact us to learn more about these opportunities. If you are not a customer, you can email to businessleads@vodacombusiness.co.za to start the conversation. By taking advantage of these strategic foresights, businesses can position themselves for success in the changing telecommunications landscape of 2025 and beyond.  

By Kirtan Sita, Vodacom Business, Digital Co-X