As artificial intelligence continues to disrupt industries, the telecom sector is quietly undergoing a transformation of its own. The latest signal of this evolution comes from Omdia, a leading research firm, which has introduced the Telco B2B AI Monetization Index the first of its kind. Designed to track how telecom companies are monetizing AI across their B2B services, the index highlights a critical shift in strategy. While current AI driven B2B revenues are modest just $4 billion projected for 2025 the index forecasts a 65% CAGR through 2030.
The AI Gold Rush: Why Telcos Are Rethinking B2B
Telecom operators have long been infrastructure backbones, connecting people and businesses. But in recent years, stagnant growth in consumer services has pushed telcos to explore more lucrative opportunities. AI represents one of the most promising new frontiers.
According to Omdia’s newly launched Telco B2B AI Monetization Index, telecom providers are increasingly pivoting toward AI driven services such as AI enhanced cybersecurity, smart infrastructure, edge computing, and automated network management as key revenue drivers.
AI gives telcos the chance to move beyond connectivity and into value added services, said Michael Sullivan, senior analyst at Omdia. But capitalizing on this requires a new mindset and new monetization models.
Telefónica Tech and Its AI Driven B2B Success
Spain’s Telefónica is a prime example of how traditional telcos can evolve into AI powered solution providers. Under its Telefónica Tech division, the company has launched a suite of services that integrate AI, cloud, and cybersecurity to serve enterprises.
By leveraging real time AI analytics, Telefónica Tech helps businesses optimize logistics, automate customer service through intelligent chatbots, and secure sensitive networks from evolving threats. This shift has translated into a 24% year on year growth in B2B revenues, demonstrating the potential of AI monetization within telecom. This success story aligns closely with the trajectory predicted by the Telco B2B AI Monetization Index, reinforcing its credibility and utility.
The Roadblocks to AI Monetization
Despite the promising growth forecast, experts caution that the road to AI monetization in telecom isn’t straightforward. Telcos have the infrastructure, but they lack the software agility of tech firms, warns Dr. Lila Ramachandran, Professor of Telecommunications at Imperial College London.
AI monetization in B2B will require partnerships with hyperscalers and cloud providers, significant R&D investment, and a new kind of talent within telco teams. This insight echoes the findings of Omdia’s report, which suggests that only those operators who actively invest in AI strategy and digital transformation will reap the rewards of this burgeoning market.
What the Index Really Measures
The Telco B2B AI Monetization Index evaluates operators on several metrics, including. AI driven service offerings, Revenue attribution to AI B2B models, Partnerships with AI vendors and hyperscalers, AI capabilities in network automation and orchestration, Customer adoption and satisfaction scores.
These elements are synthesized into a composite score, helping industry players and investors understand who is leading and who is lagging in the race to AI monetization. Operators that rank high on the index tend to exhibit greater agility in forming partnerships, building APIs for AI services, and integrating AI into both internal operations and customer facing platforms.
A Telco CTO’s AI Journey
Ravi Patel, CTO of a mid sized telco in Southeast Asia, shared his journey of implementing AI solutions in his company’s B2B segment. We started small with AI chatbots for our business clients and slowly scaled up to predictive maintenance for our fiber networks. The transformation wasn’t easy.
We had to retrain staff, rethink billing models, and redesign SLAs. But the payoff? A 40% reduction in operational costs and a 15% increase in enterprise client retention Patel said. His experience underscores the real world impact of AI on telco B2B models and supports the trajectory forecasted by the Telco B2B AI Monetization Index.
What Comes Next for Telecom and AI?
Looking forward, the telco sector’s success in AI monetization will hinge on five key pillars.
1. Ecosystem Partnerships Collaborating with AI vendors, cloud providers, and industry specific solution developers.
2. AI Infrastructure Investment Enhancing edge computing and network intelligence.
3. Customer Education Helping enterprise clients understand and trust AI solutions.
4. Talent Upskilling Training existing staff in AI deployment and ethics.
5. Scalable Monetization Models Creating usage based or outcome based billing for AI services.
If telcos can align on these pillars, Omdia’s forecast of a $4 billion revenue base scaling at 65% CAGR might even be conservative.
Why the Index Matters
The launch of Omdia’s Telco B2B AI Monetization Index is not just about metrics it’s about strategic clarity. For years, telcos have struggled to break free from the commodity trap of pure connectivity. AI especially in B2B, offers a path forward.
This index serves as both a benchmark and a roadmap for operators serious about participating in the global AI economy. With the right mix of innovation, partnerships and customer focus, the telecom sector can redefine its future and the future of enterprise technology.